What we'll cover
How to maintain safe online shopping practices
Online scams to watch out for when shopping
Precautions to take when buying items online
Especially during busier shopping seasons — around the holidays, for instance — it’s easy to become complacent and fall prey to online scams. Whether it’s buying something on a fake website or buying something that is fake, there are several things you can do to help avoid fraud and scams when online shopping.
1. Only shop with trusted vendors
Finally, when you do buy, make sure the website is secure. Look for a lock symbol in your browser (usually located in the address bar). This means the website has a valid SSL certificate and is encrypting communications.
2. Refrain from saving your payment information
If your issuer doesn’t offer single-use credit card numbers, consider using a third-party payment service (such as PayPal or Venmo). They can store the credit card information and process the transaction on your behalf. The merchant doesn’t get your payment information.
3. Turn on transaction notifications
I’ve had times when the email has reached my inbox before the server in a restaurant has returned with my credit card!
4. Avoid insecure devices
Finally, enable two-factor authorization on your financial accounts. Many banks and brokerages offer this extra security measure as a standard nowadays.
5. Check the return policy
Your credit card may also offer Return Protection. Return Protection covers you if you try to return an item within a certain number of days of purchase, usually 90, and the merchant refuses. The card may refund the purchase price, minus shipping and handling, with dollar limits per item and per year. Check your credit card’s website or your card’s Terms and Conditions for the exact protections because they vary from card to card.
6. Review your credit or debit card protections
We recently used this perk to replace a hot water kettle after it failed just a month after the warranty expired. The credit card just reimbursed us the full price of the kettle since it was relatively inexpensive.
7. Install and update your antivirus software
If you follow these tips, you’ll be much safer when shopping online and better equipped to avoid any risks you encounter.
Jim Wang is the founder of personal finance blog Wallet Hacks. He uses his engineering background to demystify complicated financial topics to help you achieve your goals. Jim has been featured in The New York Times, The Baltimore Sun, Entrepreneur magazine, and more. He lives in Maryland with his lovely wife and three children.
