Shopping
online has become increasingly popular in recent years to the point
that it is now part of everyday life competing head on with traditional
stores for everything from DVD's and groceries through to travel.
In
spite of this increasing popularity there is one fear that has kept
many wary of online shopping. This fear is credit card
fraud. How do you know that when you enter your credit card
details online you're personal information and card details are not
going to fall into the wrong hands?
While everything carries a
degree of risk, shopping online should be relatively safe providing you
follow these tips to keep your details in the right hands.
Shop
Online from Well-Known Companies
The
Internet has matured to the point that many online companies such as
Amazon.com in the US have become household names. Also, many big brands
from the real world have moved online. Well known names are likely to
use the latest online security measures and handle a large number of
transactions.
Check
Company Reputation with First Time Purchases
There
will always be times when you want to purchase something online from a
website you've not purchased from before. This is especially true in
Australia where many big name chain stores have been slow to move
online and many online retailers are small operators.
If it's
your first time shopping on a particular site then check out the
company before making purchases to be sure they have a good reputation.
As well as word of mouth from friends and family you can also search
consumer review websites where companies and products are rated and
discussed.
Check
for Contact Details
Make
sure the company you plan to buy from provides contact details other
than just an email address or online form. If anything was to
go
wrong then you will need to contact them. Look for a postal
address and landline phone number. You may also want to check if they
display an Australian ABN number.
Only
use Secure Websites
Once
you are happy with the company you are purchasing from you need to make
sure your credit card details are being processed using a secure
connection. The most common form of secure encryption is known as
Secure Sockets Layer or SSL for short. SSL encrypts data by breaking it
up into small pieces so that the information can not be read by anyone
attempting to intercept it.
To ensure your purchase is processed using
SSL or secure technology there are a few things to look for in your
Internet browser. Depending on your browser settings you may receive a
message stating that you are about to enter a secure area. The secure
area normally begins on the first page of the site where you enter
personal details. You can also look for a padlock symbol in the lower
right corner of your browser symbolising the page is secure.
Most often
the website address in your browser address bar will also change from
starting with http to https. Never send your credit card
details
through non-secure online methods such as via email. Such methods will
offer little protection.
Security
Code
An
ever growing number of online stores now require a CVV or card
verification number when making a purchase. The CVV code is the small
code located on the back of your card on the signature bar.
Generally
the last 3 digits of the code are required. This is to prevent
fraudulent purchases from someone who has managed to get your name;
card number and expiration date from being able to make purchases using
your card.
Further
Security
Another
security feature that credit card companies are using is to create
another level of security by adding an additional password. An example
of this is Verified by Visa or Mastercard Secure Code.
These are
optional security features so only offer support with selected websites
or payment processing systems. If you activate the code and shop on
sites that carry the Verified by Visa or Mastercard Secure Code logos,
the check out process will require the password you set up in order to
authorise your purchase.
Phishing
Emails - Don't Get Reeled In
Be
aware of email scams designed to gain access to your credit card
information. Email scams that are designed to gather personal
information such as passwords and credit card details are known as
phishing emails.
The idea is that thousands or hundreds of thousands
are sent out in the hope of reeling in unsuspecting victims and getting
them to part with confidential information. The emails often appear to
be from well known companies and can look quite convincing.
However,
legitimate companies including all banks will never send you an email
with a link requesting your login, password or credit card details. If
in doubt, type the web address of the company it relates to directly
into the browser rather than following the email link.
Use a
Credit Card with Online Fraud Protection
Just
in case all else fails it helps to know the policy for online fraud
protection offered by your credit card company. Many credit card
companies offer protection against purchases made without your consent
and have special clauses to include online purchases. Credit cards tend
to offer greater protection than debit cards as they don't directly
remove funds from your own back account.
If a transaction goes under
investigation or proves to be fraudulent your credit card provider may
credit back any fraudulent transactions meaning you don't end up out of
pocket if they offer fraud protection.
Further security measures
to reduce online card fraud continue to be researched. One
system
being tested in the USA involves having a small screen within your
credit card. Each time you pay online a random code is
generated
on the card; this code is required to make a purchase ensuring only the
person holding the card can make a purchase.
Online shopping is
certainly here to stay with industries such as travel & finance
leading the way. There are good arguments to say shopping
online
can be safer than shopping over the phone or even in person as you
never hand you card details over to another person.
While credit
card fraud may never be wiped out completely these simple tips should
help you shop online safely and securely.
No investment advice provided to you.
This web site is not designed for the purpose of providing personal
financial or investment advice. Information provided does not take into
account your particular investment objectives, financial situation or
investment needs.
You should assess whether the information on
this web site is appropriate to your particular investment objectives,
financial situation and investment needs. You should do this before
making an investment decision on the basis of the information on this
web site. You can either make this assessment yourself or seek the
assistance of any adviser.
xLife Pty Ltd ASIC No. 305213 is a Corporate Authorised Representative
of Milennium3 Financial Services Pty Ltd.
ABN 61 094 529 987 AFSL No. 244252
