In today's electronic world, shopping is just a click away. It can be done whenever and wherever at the shopper's convenience. But, how safe is online shopping? The NCL (National Consumer League) National Fraud Information Center (http://www.fraud.org/welcome.htm ) has gathered statistics related to complaints connected to the Top Ten Internet Scams that indicate Fraud Trends. Their findings show that in 2005 a total of 72% of all complaints were the results of online shopping fraud. Just because there's Internet fraud doesn't mean that you'll become a number. There are many steps that you can take to protect yourself and enjoy the benefits of shopping online.
- Know from whom you are buying - Get the phone number and physical address of the seller. Check with the Better Business Bureau or other consumer protection agency to see if there are complaints lodged against the merchant. Check their website to see if they support or belong to programs that encourage good business practices.
- Pay with a credit card - Paying with a credit card is safer than using a debit card, check, or cash. A credit card gives you the ability to legally dispute charges for goods that you never received, ordered, or were misrepresented to you. If there are unauthorized charges on a credit card, your liability is limited to $50, under federal law.
- Look into single-use credit cards from your card issuer - Credit card issuers are adopting a new technology that allows you to make charges to your credit card account without using your real credit card number. This protects you from additional fraud charges by the seller.
- Know exactly what you are buying and how much it will cost - Understand the seller's description of the product and read all the fine print. If it sounds too good to be true, it probably is. Factor in all charges, including shipping and handling. Be sure to "shop around" other sites to validate the cost.
- Print and save records of all online transactions - Make copies of the product description, price, receipt and even the main web page of the seller with full contact information. File this documentation in the event you might need to use it later.
- Verify the privacy policy of the seller - Consider what information the merchant is collecting, why it is being collected and how it will be used or disseminated. If there is no privacy policy, expect that all your information will have no safeguard, and consider going to another seller.
- Check out warranty and service information - Determine if the product comes with a warranty and if the seller provides service should you need it.
- Confirm that the seller has a return policy - Find out if the seller will allow you to return the item if you are not satisfied. Also determine if you are responsible for shipping and handling for the return, and if there are any restock fees.
- Validate the security of your transaction - Many merchant sites employ Secure Socket Layer (SSL) or Secure Electronic Transaction (SET) technology, which encrypts information you send over the Internet. Look for one of these signs shown below to show that your transaction is secure:
- The web address changes from "http" to "https" or "shttp". The "s" indicates that the site is now secure.
- Your browser shows a closed lock icon in the lower right-hand corner. Unencrypted web pages don't have a lock or may display an open lock.
- Consider what the website says about how the seller safeguards your information during transmission and storage.
- Never provide sensitive information in an email to the seller, or anyone else.
The same rules mentioned above apply to online auctions. In addition, it is advisable to become familiar with the site before bidding. This includes ascertaining what protections are available to auction buyers, and learning as much information as possible about the seller.
If you have problems with an online shopping transaction, try to reach a resolution directly with the seller of the product or director of the auction site. If you cannot resolve the issue, contact and file a complaint with one or more of the following:
