Shopping Safely Online

What you don't know can fleece you

Shopping online offers many benefits that you don’t find at the mall. Stores on the Internet are always open -- seven days a week, 24 hours a day -- so you can research your purchases thoroughly, and bargain-hunt and comparison shop in your pajamas.

There are no lines, lots of selection, and often great prices on the Web. Many companies even offer special deals on shipping and lenient return policies to ease your mind further.

But before you take advantage of the Web to shop online, be sure you've educated yourself about it.

Shopping on the Internet is technically no less safe than shopping in a store or by mail. As long as you are dealing with a reputable company, online transactions are actually far more secure than face-to-face transactions, since online purchasing eliminates the middle man -- like the waiter or cashier who processes your credit card payment. On the Web, your private information is actually exposed to fewer people.

But criminals do prey on the ignorant, so acquaint yourself with the techniques they use and be smart when shopping online.

Tips for protecting yourself when shopping online

• Be skeptical. If a deal sounds too good to be true -- say, $20 for that new iPod Nano -- it probably is. It's probably an attempt to trick you into divulging personal information. On the other hand, consider carefully whether you may be paying too much for an item, particularly if you're bidding through an auction site like eBay. You may want to comparison shop, online or offline, before you buy.
• Read between the lines. Pay close attention to the look of the merchant's site. Is it amateurish? Are there spelling or grammatical errors? Do the prices seem unusually low? Read the seller’s description of the product closely, especially the fine print. Words like “refurbished,” “vintage,” or “close-out” may indicate that a product is in less-than-mint condition -- or counterfeit.
• When in doubt, check 'em out. If you are shopping with a merchant you've never heard of, or on a little-known Web site, look around the site before you make a purchase. Do they have clearly posted information about shipping rates, return policies, warranties, and privacy protection? Can you find contact information easily? Beware if the site doesn't list phone numbers and only includes an email address -- or worse, just a post office box. If you're still in doubt and the site does specify a phone number, call it and see if you get a human being on the line. Anyone can have voicemail set up. If you're uneasy about what you're hearing (or not hearing), shop somewhere else.
• Know what to look for. A recent cyber security study revealed that 67 percent of people can't identify a secure Website. How do you tell? Always check for three things on the checkout or order page: the "plural URL;" a closed padlock or unbroken key; and the Web address generally. (Some Websites also use the words "Secure Sockets Layer (SSL)" to indicate that you're entering a secure area.) If you don't see all three of these, or you notice that the URL changes from what you expect in the course of your transaction, log out immediately and shop elsewhere.
• The "plural URL:" When you go to the site's checkout page, the "http" at the beginning of the Web address should change to "https".
• Closed padlock or unbroken key: A small image of a closed padlock or an unbroken key should appear in the bottom or top window frame of your browser, letting you know your personal information will be encrypted. If you don't see either of these icons -- or if you see an open padlock or a broken key -- your online shopping session is not being encrypted, and you may be taking a big risk.
• The Web address in general: Always make sure the Web address is what you'd expect. A tell-tale sign you've entered a scammer's site is a string of numbers at the beginning of the URL, like http://66.102.7.104@65465.51456%6AD%. Legitimate companies don't usually have Web addresses like that.
• Sharing can be a bad thing. Save your online shopping expedition (and checking your bank account balance) for your own computer. Conducting your private business on shared computers, such as the ones available at Internet cafés, libraries, hotels, and other public places, can be very dangerous. The risk is that hackers can install keylogger hardware or software on the computer. The keylogger captures everything you type before it's encrypted -- and it can be very difficult to detect. Or, scammers could just "shoulder surf," watching you type logins, passwords, and account information -- even using their cell phone camera to photograph your screen!
• Say "no" to public, unsecured wireless. Avoid conducting your private business on wireless networks that are available to the public in places like airports, bookstores, and coffee shops. While pubic wireless networks are convenient, there is no guarantee that someone isn't "shoulder surfing" -- watching over your shoulder -- or launching a "man-in-the-middle attack," logging the sensitive information you send over the network, such as your bank account login or credit card number.
• Pay with a credit card. In the event that a criminal does get hold of your card number when you shop online, you're safer if you've been using a credit card than if you used a debit card. That's because debit cards immediately withdraw money directly from your checking account -- so fraudulent transactions are tougher to fight since the money has already been spent. It can take months to get your money back, if you ever see it again at all. But if your credit card was used by a criminal, the credit card company will help you resolve the issue. Federal law limits your liability to $50 in fraudulent charges on your credit card, and many companies won't hold you responsible for any use by imposters. If you are reluctant to give out your credit card number over the Internet, you can use a third-party escrow service such as PayPal.
• Suspect the suspicious. If you're on a checkout page and the site asks for your date of birth and Social Security number, be very careful. Such information is generally not required for online shopping transactions, and the combination of your birthdate and your SSN can give a wrongdoer sufficient information to start applying for new credit cards in your name. If anything seems suspicious, call the company and ask questions before you buy.
• Keep a paper trail. Print and save records of your online transactions, including the product description and price, the online receipt, and copies of any email you exchange with the seller. You can also create a folder on your computer to save all such emails and receipts.
• Review your credit card statements frequently. Read your statements as you receive them, particularly if you shop often online. Stay on the lookout for unauthorized charges. Scammers sometimes start with small purchases, under $10 or $20, to see how closely you watch your account. If they can get away with something small, they will spend more. Catching it early will save you a lot of time, money, and heartache later. Monitor your credit report annually, too.
• Ensure the safe delivery of your item. Your online shopping experience doesn't end when you click "Submit." Inspect your purchase as soon as you receive it. Contact the seller as soon as possible if you discover a problem with it, because federal law limits seller liability after a short time. Tell the seller in writing about any problems you have, ask for a repair or refund, and again, keep a copy of your correspondence. Report any problems you have to the Better Business Bureau.