The thieves, the thieves, the flithy little thieves. Where are they my Precious?

I just recieved a call from my creadit card complany. There have been some strange charges on my account--nearly $7000. I still have my credit card on me and I have been racking my brain to discover how my number has gotten out into the world. There are, of course two possiblities. 1. Someone I know. or 2. From the internet. Altough I can't rule out someone I know, I will say I recently attempted to buy a Cross-Stitch pattern off the internet and never got the pattern. I ordered it from www.salt-and-pepper.com. They seemed well established, but I give them my credit card number, I don't get the product I ordered, and I get massive amounts of charges.