The internet has been a marvellous invention for businesses, communication and information, however, as with any resource, there are always those who will take the opportunity to take advantage of others. The often removed and anonymous nature of the internet also makes it easy for others to take advantage of you, which is why you need to know how to protect your credit card details while shopping online, and know what to do if you do come across an online scam.
How to Protect Your Credit Card Details
When you are shopping online there are some tips you should follow to keep your personal information safe:
If a deal looks too good to be true it is probably a scam. Don’t agree to deals or offers on the spot, instead tell the person that you want to seek some independent advice. You can then contact your local office of fair trading, ASIC or the ACCC for more information on a person or business. Don’t send money or give your credit card details to someone you don’t know or don’t trust. Keep your actual cards safe too and don’t store your PIN with your card, or tell anyone else your PIN. Choose passwords and PINs which would be hard for other people to guess. Don’t enter your details into a website that you think may be insecure. Check your bank account statements regularly to look for any fraudulent transactions and then report the transaction to your provider. Don’t open unsolicited emails as they could be spam. Don’t click on any links in a spam email, call a number in a spam email or reply to a spam email. Know who you are dealing with and always try and work with an Australian company as it will be easier to sort out any issues if something goes wrong.
Common Online Scams
Common scams which are popular with online scammers include some of the following which will help you watch out for fraudulent deals:
Auction and shopping. An online auction can be rigged by a scammer, or scammers can watch auctions and if you miss out on the purchase they will contact you outside of the auction site offering you the same product but you could end up with a faulty product or nothing at all. Domain name renewals. A fake renewal notice will be sent by a scammer for your real domain name or one which is very similar to your own, with an invoice which looks very much like your real host’s letterhead. Spam emails. Emails offering free goods or prizes, cheap products or instant wealth if you just follow a link or send a sum of money. A common email scam is the Nigerian 419 scam which promises a huge reward if you help someone transfer money out of their country by giving them your bank details. Spyware and key loggers. Spyware can spy on your computer and key loggers record your keystrokes so that scammers can steal your online banking passwords and other personal information from inside your computer. Upfront payment scams. You are asked to send money to receive a product or reward for signing up and you receive a lesser gift or nothing at all. A common variation of this bait and switch scam is the ringtone scam where you take up an offer for a free or cheap mobile phone ring tone and you end up being subscribed to a premium rate service.
Warning Signs Your Personal Information is Under Threat Online
There are signs which you can look out for when you are shopping online and using the internet to warn you that you are under threat. For example:
A product is advertised at a very low price. You are contacted outside of the website or business to send your bank details by email or send an immediate payment to another person. The website does not have enough information about privacy, terms and conditions, dispute resolution or contact details. The website does not have a secure address, as the URL should start with https:// before you enter your credit card details.
How to Report a Scam
If you notice an issue with security or a sales product or procedure online, you should first contact the seller as there could be a legitimate reason for the problem. However, if you are unsatisfied with the response and you suspect a scam, you can report the site to SCAMwatch www.scamwatch.gov.au. SCAMwatch is part of the ACCC and you can use the online form to report a scam and the ACCC will do their best to investigate each report.
If you have already completed a transaction but you have used your credit card, you may be able to claim back the transaction cost through your bank or credit card provider if you can prove there has been a fraud involved. Also make sure you tell all of your friends and family about the suspected business or website.
Sources:
http://www.scamwatch.gov.au/content/index.phtml/tag/OnlineScams
http://www.scamwatch.gov.au/content/index.phtml/tag/OnlineAuctionShoppingScams
http://www.scamwatch.gov.au/content/index.phtml/tag/HowToProtectYourself