Nicole Bocim
Compliance Officer |
Shopping over the Internet
and paying from home?
Do your homework first!
With the benefits come potential pitfalls, including the risk
of ID theft. Here's how to protect yourself.
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As people are becoming more comfortable using the Internet,
they're also more willing to shop for goods and services on-line. After all, the Internet lets you research products, comparison shop among hundreds of businesses, sign up for special deals, and pay for purchases 24 hours a day, seven days a week, without leaving home. But while on-line shopping offers great convenience, there can be hazards. Perhaps the most serious risk is identity theft, which happens when criminals obtain personal information, such as a credit card or Social Security number, and use it to commit fraud in someone
else's name. Much less troublesome, but still a concern, are unwanted advertisements and junk e-mail that originate when companies gather information about consumers who visit their Web sites.
"On-line shopping is definitely catching on," says Cynthia Bonnette, Assistant Director of
FDIC's Bank Technology Group in Washington. "But it's different from the way
we're accustomed to shopping, and you must be careful how you decide to share sensitive information
on-line." Here's our simplest, best suggestions for protecting yourself:
1. Deal with a reputable company.
- Stick to companies you already know from their retail outlets, mail order catalogues or other
services. Be suspicious if the merchant doesn't list a physical address or phone number.
- Closely review the letters and numbers in the Web site's address (URL), especially if you are
provided a link to that site in an unsolicited e-mail. Some con artists try to lure consumers to their fraudulent Web site by using corporate names or Internet addresses that are very similar to those of legitimate, well-known companies. You can confirm the correct Web address in a
company's literature or by calling the company using a number from the phone book, a government agency or some other trusted source, and not the one provided on the Web site
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in case it's a scam.
- Contact a knowledgeable friend, the Colorado State Attorney General's Office or the Better
Business Bureau to ask about the merchant's reputation.
2. Take precautions to protect the privacy and security of your personal information.
- Read information on the company's security practices and its privacy policy, primarily to find
out how it safeguards bank account, credit card and other confidential information. Also provide the minimum information needed to complete a transaction.
Don't divulge your Social Security number, credit card number, address, phone number or other personal information unless
you're sure the Web site is legitimate and you know why the information is needed. And never disclose your password to anyone. They
don't need that number to assist you.
3. Know your payment options.
- Credit cards are the most common way to pay on-line. Protect your card number by shopping at
Web sites that encrypt your card number.
- Electronic cash or digital cash, which is a form of electronic currency that can be purchased,
downloaded and stored on the hard drive of your computer or a special card.
- Deductions from pre-arranged accounts with on-line payment services.
- Additions to your monthly phone bill or other utility bills.
- Bonus points you can earn that can be used to make additional on-line purchases from
participating merchants.
- Electronic checks, which generally involve sending instructions to have the funds deducted
electronically from your checking account.
4. Be prepared for a possible problem.
- Before you make a purchase or a payment, read the information on the Web site regarding your
right to stop payment or the company's refund and return policies for damaged goods or faulty service. Print out copies of purchase orders and confirmation numbers in case there is a dispute. Also, regularly check your bank and credit card account statement for errors or unauthorized withdrawals.
Remember, depending on the situation, you may be protected by federal and state laws against such woes as account errors, unauthorized use of your account information, and the unwanted sharing or selling of your personal information.
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