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How to avoid fraud if you're shopping online

Emma Lunn
by Lovemoney Staff Emma Lunn on 28 November 2011  |  Comments 7 comments

It's easy to avoid fraud and stay safe shopping online, if you know how...

How to avoid fraud if you're shopping online

Today has been dubbed 'Mega Monday' (Cyber Monday in the States): the day millions of us start doing our online Christmas shopping. Retailers are expected to rake in £424 million today - that's around £300,000 a minute!

And why not shop online? After all it means no crowds, queues or carrying heavy bags on the bus home. A few clicks and it's all done and within days your gifts will turn up on your doorstep... Or will they?

Remember the stress the bad weather for online shoppers caused days before Christmas last year? Deliveries were delayed, and some even failed to arrive in time. As a result, we're shopping online earlier this year.

But knowing the retailers you're buying from are legitimate and staying safe online are vital. Otherwise you could end up with no presents to give anyone or, worse, finding that fraudsters are using your credit card to fund their own festivities.

Here's how to stay safe online this Christmas.

Can you trust the site?

One way to find the best online bargains it to use an online comparison tool like pricegrabber.co.uk or kelkoo.co.uk. However you might find these sites direct you to a retailer you've never heard of for the best price for your product. So how do you know the site you're buying from is legit?

First use a directory such as safebuy.org.uk or shopsafe.co.uk. These directories check out sites before listing them and test them for things like prices, site security and delivery.

If it's not listed it doesn't mean the site's going to be dodgy - you're just going to have to carry out your own investigations. Check whether the site displays a UK phone number and contact address and if you call the number whether you actually get through to a real person.

Security

For safe shopping retail websites should display the padlock symbol in the browser and the website address should begin with 'https' rather than just 'http'.

Make sure you register your cards with Verified by Visa or MasterCard SecureCode when prompted if you haven't done so already. It is quick and easy and offers another level of protection. Cardholders can sign up to Verified by Visa and MasterCard SecureCode at the website of the bank or card company that issues their card, or when they are shopping online at participating merchants. It means that when you use these cards to shop online you'll have to enter a password for your payment to be accepted.

As well as keeping your cards safe, it's important to keep your PC safe too. Make sure you have the latest operating system, browser and up-to-date anti-virus software. If someone else uses your PC or you use one in a café or library, always log out as soon as you've finished shopping online. Make a note of the confirmation number of your order or print a copy of the confirmation.

If you're splashing out on presents that cost more than £100, pay by credit card. This means you'll have extra protection under section 75 of the Consumer Credit Act in the event of things going wrong or the retailer going bust.

Delivery and returns

There are two things you need to take into account in terms of delivery of your Christmas shopping.

Firstly, when is it going to be delivered? Check whether an item's in stock before you commit to buying it. You won't be popular if you turn up on Christmas day with just vague promises of a present that failed to arrive in time.

Secondly, check if there's an extra charge for delivery and take this into account when comparing the cost of items. Some sites offer free delivery while others charge a fee.

Also take the time to understand the refund policies for any online retailer you are planning to buy from, especially if they are not based in the UK. Make sure you are comfortable with the refund and return postage policies or compensation that you would get if something were to go wrong.

By law online retailers have to give you seven days to return your gifts but others offer longer returns periods.

Getting the best deal

The internet makes it easy to compare prices without traipsing from shop to shop with a notebook and pen. Shopping comparison sites such as pricegrabber.co.uk are good for comparing deals. Next check whether you can get money off your purchases by using a cashback site.

You can also make some money by using a cashback card to do your Christmas shopping. Check out the best cards to use here.

Of course, you should try not to run up debts over the Christmas period, epsecially if you're using a cashback card. You don't want the cash you earn on your spending to be completely wiped out by interest charges. But if you do have to put your shopping on plastic and you can't afford to repay it in full straightaway, take a look at our Pay off your credit card debts guide in the New year for tops tips for clearing it all in double quick time.

And finally, if you have a concern about shopping on the internet, why not wander over to Q and A and ask other lovemoney.com readers for help. And please feel free to warn others if you have dodgy online retail experience.

This is a classic article which has been updated.

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Comments (7)

  • Spriitzer
    Love rating 1
    Spriitzer said

    Good security suites also often have a Virtual Keyboard (Kaspersky, for example), which adds an extra barrier to security and helps deter keyloggers from accessing account/card numbers, etc. (we hope!). I don't use my PC keyboard for inputting any financial data now (banking, online shopping etc.). My browser is cleared every time I log off, and if I'm online for any length of time, I also clear it manually during my visit too. I'm surprised at just how many friends don't check that their security is updating daily or hourly (depending on their software), check reports, or clear their browser as an absolute minimum. They don't bother to familiarise themselves with what their software can deliver, and wouldn't know where to check what (if anything) their software has "caught" in terms of attempted hits. Crazy to bury their heads in the sand and hope they'll be safe. Or can they just not be arsed?  

    Report on 28 November 2010  |  Love thisLove  0 loves
  • rabb5it
    Love rating 13
    rabb5it said

    spriitzer, perhaps it's not that they can't be 'arsed' but that they don't have the IT knowledge. You may be very IT savvy, but many people are not or do not have an interest of how things work & simply use the inet as a means to an end. Like all activities, it takes time to learn. Education on the subject is the most helpful for people.

    Report on 28 November 2010  |  Love thisLove  0 loves
  • lasdrop
    Love rating 0
    lasdrop said

    does any one have any idea weather this is a good website or not.

    www.envymyugg.com

    thanks

    Report on 28 November 2010  |  Love thisLove  0 loves
  • SteveJuggler
    Love rating 0
    SteveJuggler said

    My online store doesn't have "https://" secure web pages until you go through to the payment pages. It would be great if your article perhaps states that some websites only have the secure setting once people have enterted the payment process and aren't just browsing around the online catalogue adding things to their baskets!

    Report on 21 November 2011  |  Love thisLove  0 loves
  • electricblue
    Love rating 643
    electricblue said

    Three things:

    1) Web site designers and software developers need to understand that the world is not full of geeks and even those who DO understand the technology are not looking for a 24/7 experience at the cutting edge of what is possible - they want the safest, most reliable solutions with pro-active efforts against phishing and fraud. My banks have NEVER sent me an email saying 'If you get this email, it's a fraud' and yet they have every ability to track scams and send precisely worded warnings. Many scam emails have laughable grammatical errors or procedural steps which a bank would never suggest and which are great pointers to the fake communications.

    2) Better education for the public with government run schemes and regular scam warning newsletters sent within minutes of scam emails being propagated. Why not a daily scam update on local or even national news?

    3) Scammers to be treated on the basis that their anti-social crimes are against humanity, on a lower level (obviously - but only just) than capital offences, with extra tarrifs on sentencing in the same way as recent rioters were treated. International arrest warrants and extradition agreements to be used for fraudsters and online scammers and an international financial 'chargeback' system against governments which do not enforce laws. Additional import tarrifs on goods from non-compliant countries would soon concentrate their efforts.

    Report on 21 November 2011  |  Love thisLove  0 loves
  • Mike10613
    Love rating 599
    Mike10613 said

    Amazon are doing Black Friday deals. It's worth taking a look but they are time limited. I was a bit too late for a Tom Tom Sat Nav.

    Report on 21 November 2011  |  Love thisLove  0 loves
  • Iamcoldsteve
    Love rating 309
    Iamcoldsteve said

    I set up my parents laptop, it does everything automatically. Auto updates anti virus and spy ware, browser security is high, with auto clearance of cookies, history etc etc. I have also said to them to ignore any emails for their 'bank' etc. In fact, just about ignore every email they receive from anyone except their friends and contacts, and any recent online activity.

    I don't think they need to worry about attempted phishes or attacks - they don't use the internet very much and usually ask for assitiance from me for the most important things.

    It makes me wonder how other people who may not have the access to some IT skills cope with the constant barrage of scams.

    Report on 28 November 2011  |  Love thisLove  0 loves

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