Introduction
Around a fifth of all retail spending is now done online as consumers take advantage of the savings and convenience shopping online can offer.
In the first six months of 2008, 17pence of every pound spent by British shoppers was spent online and we spent a total of £26.5billion, according to a report from IMRG, a trade body for online retailers, and consultancy Capgemini – 38% more than over the same period last year.
However, while internet shopping is on the up, so too is online fraud: ‘Card-not-present fraud’ which includes online, phone and mail order transactions is the fastest growing type of card fraud. It has soared 298% since 2000 according to figures from Apacs, the UK’s payment association, and cost the debit and credit card industry £290.5m in 2007. So how can you shop online safely and minimise the risk of falling victim to cyber crime?
Stick to well known names
Only buy from sellers you trust. If it isn’t a high street name or a company you’ve heard of, do some research before you make a purchase. Look for an address and contact number and don’t be afraid of calling the number or emailing the company to check that the details are bona fide. Our customer ratings should also help as they enable you to read feedback from other customers before you buy.
If you are at all suspicious, the safest thing is not to buy.
Use secure websites
If you’re making a payment online, check that the website is secure before you fill in any credit or debit card details: look for a locked padlock symbol in the bottom right of the browser window and make sure the website address begins ‘https://’. It’s also worth clicking on the padlock to check that the certificate is not out-of-date and that it is registered to the right company.
Also, watch out for padlocks that appear on the page itself – they are easy symbols for fraudsters to copy and legitimate padlocks will only appear in the window browser.
It’s also worth looking for an Internet Shopping Is Safe (ISIS) logo. These are awarded by IMRG which vets accredited retailers for reliability, data protection and security. As with padlock symbols, it’s advisable to click on any logos to check that the accreditation is a genuine one.
Pay with a credit card
You get extra protection if you pay with a credit, rather than a debit card. Under section 75 of the Consumer Credit Act 1974, the credit card company is jointly liable with the retailer for purchases valued between £100 and £30,000. This means that if you buy something over the internet that doesn’t turn up or arrives faulty or damaged you can pursue the credit card provider for a refund, if the retailer refuses to give one or has gone bust. You do not get this protection with a debit or store card.
MasterCard and Visa offer an extra level of security: If you sign up for MasterCard SecureCode or Verified by Visa (which you sign up for will obviously depend on whether your credit card is a Visa or MasterCard) you provide a personal message and password. Then each time you use that card to make an online purchase, you will be asked for the password as well as your other card details at the point of payment.
Proof of purchase
With many online retailers customers have their own online account where they can see their account history and track orders. However, as well as this, print out a copy of the order confirmation and check bank or credit card statements carefully to make sure the right payment has been gone through and that it hasn’t been processed more than once by mistake.
Keep security up-to-date
Ensure your own computer’s internet security, firewall and anti-virus protection is up-to-date. Don’t ignore updates when they flash up on screen. If you do fall victim to online fraud your bank may not cover any loss if your computer and internet protection wasn’t properly secured.
It’s well worth checking your bank’s own website every few months as it will probably offer advice about online security and have details about the latest scams to watch out for.
