You’ve read about it and seen it on TV, the bad guys rummaging through garbage or sitting in a car with a wireless laptop, looking for a way to steal your personal information, your credit card numbers, social security number, your signature, etc… Identity theft is an unfortunate reality that can and should haunt anyone who makes online purchases using a credit card. Just how safe are you when you shopping online?
Actually, safer than you may have previously thought. Despite the headlines of credit card scams and identity theft, it is actually quite safe to use a credit card to make purchases online as long as you follow a few basic guidelines and exercise a little caution. There are plenty of precautions you can take to protect yourself against the obvious scams as well as genuine companies that go out of business before you receive your goods or services after paying online with a credit card. So before you type your details in and press enter, there are a few steps to take first to protect your details.
Always use a credit card rather than a debit card. Section 75 of the Consumer Credit Act 1974 states that if something does go wrong with a credit transaction the credit card company is jointly and severally liable with the retailer for the costs. This covers transactions of between $100 and $30,000, so most medium to large transactions are safe. If the company you are buying from goes out of business before you receive your goods, you can claim the money back from your card provider. A recent court ruling has also confirmed that these regulations also cover purchases made from overseas companies giving online shoppers a little more peace of mind. However, the regulations may not apply if you make a purchase through a PayPal account or other similar payment system. Debit card transactions do not have the same kind of cover either, and are more at risk in the event of a problem.
Check to see if your credit card provider offers an Internet Guarantee. It means that you will be covered in the event of any fraudulent online activities against your card, although the exact terms and conditions can vary between providers and cards. If your card does have an Internet Guarantee, you will be able to reclaim the amount drawn against your card if it is proven that it has been used fraudulently. Cards that do not offer this service sometimes offer a dispute procedure instead. If you cannot recover the money from the company, a liquidator or other third party, you may be able to claim the money back while waiting for a final decision at arbitration.
Check your computer before and after you log on to ensure that your security systems are up to date and adequate. If you do not have anti-virus software and a firewall installed, your are vulnerable to attacks from spyware, which can steal your details by counting the keystrokes of passwords and other sensitive information. If an email asks you to confirm your details here by clicking on a link, there is a very good chance that the email is a scam, as a bank or credit card provider will never ask you to confirm your details either by email or phone. Delete these phishing emails and do not open them. Keep all passwords secure and never use the same password for all your Internet activities. Once that password becomes known your entire system become vulnerable.
Look for two indicators when working online to show that a site is secure. The first is the inclusion of the letter “s” in the first part of the URL address, https. The second is a padlock icon in the bottom right hand of the browser frame on your screen. If either of these indicators are missing, the site is unsecured and so are your details.
These are very simple guidelines and can be followed with little effort. Try to make these habits so they become unconscience acts. Keep your money safe by keeping your credit card details private because with anything that is powerful there are always those that will traverse the dark side.