How safe is online shopping?
The deals look great, some even too good to be true. But before you click to commit to that purchase you should do a safety check. Below you will find some helpful hints to avoid being scammed.
Go with reputable companies you’ve heard of, such as Amazon.com. These sites put their name on the line.
The bigger company will also have deals that they will follow through on. The promise of a computer for $50 isn’t always what is advertised with a less reputable company.
One company, buySAFE, puts merchants through a screening process to verify the merchant’s identity, online sales experience and ability to deliver the purchased items. If a retailer passes that process, buySAFE is willing to stand behind them with their purse, says CEO and president, Jeff Grass.
If you go with an unknown merchant or Web site, contact someone there who can verify the company’s privacy policy for you before you make a purchase. Ask if they’ll send you a catalog.
If there isn’t a phone number, address or e-mail this should be a warning.
Bottom line: If you can’t get a human being on the phone or don’t like what you’re hearing, go shopping somewhere else.
Prior to typing in your credit card information check for encryption and other safety features. Look for the “plural URL.” That is, when you go to the site’s checkout page, the “http” in the URL should change to “https.” A closed padlock or key should also appear on the page, letting you know your personal information will be encrypted or scrambled.
If you don’t see either of these “locked” icons or a change in the URL, log out and shop with someone you know. The reason? You really don’t know if the site has a secure server, and you shouldn’t take that risk.
If you ever see numbers at the beginning of the URL, such as https://66.809.5.104@1994867.6321%65AD%, it’s probably a scam.
Also remember even if you see a proof of encryption, the company may still be a scammer. It is possible that the encryption is referring to the session being encrypted.
To verify the site’s trustworthiness, it is advised that you call the company and ask them about their privacy policy (reaching a real live person of course).
Shared computers, such as the ones available to multiple strangers at computer centers, are very risky. The best thing to do is avoid shared computers when typing in any sensitive information.
The risk is that hackers can insert a keylogger into the back of the keyboard. This is a device that looks like a harmless adapter. The keylogger is a monitoring device that captures everything you type before it’s encrypted. Sometimes installed as software, the device can be hard to detect.
Now that you have found a reputable site with a secure checkout page, pay with a credit card. Most credit cards have protection on them—if someone rips you off, you can dispute the charge.
Also with a credit card it’s not just your money on the line—it’s the creditor’s money, too. Any problem with your transaction, the credit card company will help to resolve it.
According to the Federal Trade Commission, federal law limits your liability to $50 in charges, should someone use your credit card fraudulently
Another option is making purchases through a third-party escrow service such as PayPal. PayPal Buyer Protection covers qualifying eBay purchases for up to $1000 at no additional cost, helping to guarantee your purchase.
If you are reluctant to give out your credit card number over the Internet, you have alternatives. Some credit card companies such as Discover Card, Citi and MBNA offer a secure online account number service—a virtual credit card or virtual account number.
By providing a virtual credit card number instead of your real account number, your actual account number is never exposed to scammers. Check with your credit card company to see if they offer this type of security feature.
In the five years since Discover has offered virtual credit cards, they’ve had no incidences of credit card fraud or identity theft in situations where hacking has occurred, says Steve Furman, marketing director of e-commerce at Discover Financial Services.
After any sale, print and save all of your receipts and e-mail confirmations in case of a dispute. Having the proper documentation on your transaction(s) will make it easier to track down any scammer as well as protecting you
Giving out your date of birth and Social Security number can be detrimental to your credit. These two pieces of information combined equals trouble in the wrong hands. With this data anyone can apply and get credit cards in your name. Your identity can easily be taken and used for numerous transactions, legal and illegal. Most merchants do not need to know your Social Security number for transactions
In summation:
Remember, if anything seems suspicious, call the company and don’t be afraid to ask questions. If you don’t get answers, do business elsewhere.
As long as you are dealing with reputable companies, online transactions are far more secure than the face-to-face transactions people perform every day. Online transactions eliminate the middle man, such as the waiter who processes your credit card payment, so there are fewer people to physically see your private information.
Research companies before making purchases, watch for warning signs of fraud, use credit cards for purchases and keep receipts and you should be relatively safe.
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