A lot of people are surprised when I tell them I don't use my credit card online whatsoever. I think the reason they seem surprised is because I work in Information Technology and as such would embrace the technology rather than fear it.
Anyway... a short while ago I got an automated phone call purported to be from my bank's credit card fraud division but since it was automated, (not a real person) I hung up the phone. One needs to watch out for phone scams too and I'm not about to give out CC info to an automated phone message. A couple of days later, my wife was trying to pay with her card (same account, different card number) and she was denied.
She visits our bank to followup and they say that they suspected that my card was compromised so they disabled both cards. There were two online transactions that went through and an attempt on a $1 transaction that triggered the alert.
I've always been very careful with my card, never ever letting it out of my sight. Back when they used carbon paper, I would ask for it to be handed over to me. I know all about card readers that waiters/waitresses/etc. use to grab CC info. I've heard that burglars now target computers, not for the value of the hardware, but rather for the value of the CC transaction data processed through them.
My new card when it arrives, will have chip and PIN technology. Unfortunately, I think there are still other weak links in the chain.