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And there could be no easier way to buy gifts than to do so online, right? But if you do not take prudent steps, bad things could happen. Keep reading.
Forrester Research predicts that online holiday shopping will increase a whopping 25 percent this year, with 2.5 million households making online purchases for the first time. Meanwhile, online privacy watchdog group Truste reports that 78 percent of Internet users in the United States will conduct some of their shopping online.Of course, a greater number of online purchases could translate into a larger parade of horribles, including identity theft, viruses, phishing, worms and spyware. Fears related to these risks have led 40 percent of consumers not to make purchases from small online retailers, 22 percent not to make any online purchases, and 14 percent to substantially limit online spending, according to Truste.
Perhaps these fears are well-founded, as a survey by Consumer Reports indicates that Internet users face a 33 percent chance of experiencing financial loss, computer damage or both due to viruses, spyware or hackers. These are fairly sobering statistics.
What is an online shopper to do? Bottom line: Be smart and try to abide by these practical tips from the CEO of home networking company Sereniti:
• Print copies of all online receipts so that they can be checked against credit card bills.
• Print copies of all guarantees and warranties.
• Do not respond to e-mails asking customers for personal information. Businesses and financial institutions rarely reach out on their own seeking such information. It is better to contact a business directly on your own.
• Online retailers that display Truste and Better Business Bureau seals likely are to be trusted to safeguard personal information.
• Note whether Web sites begin with "https" instead of "http" in the browser area and whether they display a padlock icon in the lower right-hand border of the browser window, as this indicates secure encryption to protect customer identities.
• If possible, avoid providing Social Security numbers online.
• Make sure that online retailers have solid privacy polices that make clear their customers' information will not be sold or transferred after a transaction occurs.
Follow these tips, drink some eggnog, spend your money, and have a happy holiday season.
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I bet the percentage of theft is even higher when you give out personal information not online. Think about the times you given your credit card away to a waiter or gas station attendant. How about when you sign up for a credit card or bank account; how many people have access to your social security number?
When you visit a reputable merchant, you will be placing an order on a secure website. All data is encrypted, and no one has ever had their credit card number captured during transmission. It's safer than handing your credit card to a clerk or waiter who turns their back to you or walks away with your card.
Anyone who responds to spam and buys anything from them is no better than someone who walks through the mall with money hanging out of their pockets. Stupid is as stupid does.
Regarding giving your Social Security number online, it is necessary when applying for credit online, such as ordering phone service that will be billed rather than paid by credit card. On a secure order form, it is as safe or safer than ordering by phone.
The real world offers hazards with your SS# too. How many businesses use your SS# as an account number for record keeping? Heck, even my pet's veterinarian wanted to do that. Those are the people who have no legitimate reason to have it, and you should refuse to give it to them.
Ultimately, shopping online is no more dangerous than going to the mall, and shopping in bricks and mortar businesses is no safer than shopping online. It's about being a knowledgeable consumer.