Online Growth, Safety Tips, And How To Avoid Scams

While brick and mortar store holiday shopping is still the most common way that people do their holiday shopping, online shopping has increased dramatically in recent years. Last year 20% of holiday shopping was online and the trend is expected to continue. Every year, the number of people shopping online and the money spent through online shopping grows significantly. And why not? The convenience alone of being able to shop in the comfort and privacy of your home is reason enough for many of us to shop online. But how safe is it? According to the FTC, online shopping scams were the second most common scams following imposter scams. However, following some basic precautions can go a long way toward protecting you from being scammed when shopping online.

Here is a list of some online shopping tips:

1. Make sure that the computer, laptop, tablet or phone you use is equipped with anti-virus and anti-malware software. Also, make sure you update your security software with the latest security patches.

2. Whether you shop in a brick-and-mortar store or online, don’t use a debit card for your purchases. If your credit card is compromised, the law limits your liability to no more than $50 and frankly, I have never seen a credit card company charge anything if your card is used by a scammer. However, if your debit card is compromised, you run the risk of having your entire bank account lost without recourse if you do not report the fraudulent use in a timely manner.

3. Don’t provide your credit card number unless the address of the website is preceded by the letters “https.” That additional letter “s” indicates that the transmission of your data is encrypted and secure.

4. Don’t leave your credit card number on file with the online retailers you use for the sake of convenience. Doing so only makes you more likely to become a victim of identity theft if the company suffers a data breach (and many of them will).

5. Don’t click on coupons or ads that you receive by way of email or text message regardless of how legitimate they may appear. Phony coupons may be loaded with malware that will be downloaded on to your computer, tablet or phone if you click on the link. That malware can steal all your personal information and lead to you becoming a victim of identity theft. Any legitimate coupon you might receive through an email or a text message will also be available on the website of the company where you want to shop.

6. Limit your online shopping to companies that you know and trust. Scammers create phony shopping websites and often make them appear to be sites of legitimate retailers with which you are familiar. Merely because a company comes up high on a Google search does not mean that the company is legitimate. Last year the cybersecurity firm EclecticIQ determined that a Chinese criminal gang known as Silk Specter created 4,695 phony counterfeit retail websites that appeared to offer big discounts on popular items. The sites appeared to be those of popular, legitimate retailers such as North Face, IKEA, L.L. Bean and Wayfair. The counterfeit websites used Google Translate to automatically change the language on the website depending upon the location of the targeted victim.

Fortunately, there are some services that can help you identify phony websites. The Google Safe Browsing Transparency Report is a terrific free service where you can type in the URL and learn if Google’s research indicates the website is a fake. You can also use whois.com which is a free service that will tell you who owns a particular URL and how long it has been in service. If your Walmart website has only been around six months and is owned by someone in Nigeria, it certainly is a scam.

7. Use distinct and complex passwords for each online company with which you shop and use dual factor authentication whenever possible.

Have a happy and safe holiday season.