Consumers are encouraged to protect themselves online while making purchases in the lead up to Christmas following a warning from the Australian Bankers’ Association (ABA) and the Australian Federal Police (AFP).

Increasingly Australians are shopping online. An Auscert survey¹ found 84% of respondents used their computer for Internet banking and 52% bought or sold good or services online.

David Bell, Chief Executive of the ABA, said there are some simple tips to follow (see below) in order for consumers to protect themselves and their credit card details when making purchases on the Internet.

“Just as shoppers are careful when shopping in stores, for example by not leaving their wallet or purse unattended, some simple precautions should be taken in cyberspace,” Mr Bell said.

“It’s important to be aware that banks and other legitimate businesses don’t ask for sensitive information via email. We encourage online shoppers not to respond to any requests for financial information they may receive via email. Furthermore, don’t click on any link embedded within a suspicious email or accompanying attachment, and always call the retailer or financial institution to verify your account status before divulging any information.”

AFP National Manager High Tech Crime Operations Neil Gaughan said the online environment offers an overwhelming range of online shopping sites and product choices for consumers.

“As in the real world, there are dangers and precautions should be taken to reduce the risk of credit card fraud, such as using anti-virus software to protect themselves from unwanted interference,” Assistant Commissioner Gaughan said.

“Consumers buying goods online in the lead up to Christmas should make every effort to confirm the validity of website and the products they are purchasing. Criminals are known to advertise goods online, preying on the desire of online consumers to obtain a bargain. Embrace the benefits offered by the online shopping experience, but do exercise caution and sound judgement at the same time,” he said.

TIPS FOR SHOPPING SAFELY ONLINE OVER THE FESTIVE SEASON

1. Shop at secure websites
A secure website uses protective encryption technology to transfer information from your computer to the online merchant’s computer system which keeps safe confidential information such as credit card details. Identify a secured website by looking for “https” in the web address or URL (an unsecured website address starts with “http”).

2. Research the merchant before placing an order
Do business with companies you know and trust. Reliable companies should advertise their physical business address and at least one phone number, either for customer service or for ordering products. Call the phone number and ask questions to determine if the business is legitimate.

3. Read the website’s privacy and security policies
Read the terms and conditions of the contract to make sure you understand the delivery options/charges, return policy, and product or service warranty. For international transactions, ensure you are aware of the current exchange rate and any applicable duties and taxes. Ensure the business has a fair and clear process for submitting complaints and/or cancelling orders.

4. What is the safest way to pay?
The safest way to pay online is with a credit card because consumers can dispute the charges if something goes wrong. Using a single credit card for all online purchases can make it
easier to track any irregularity on your account.

Consumers can dispute a transaction if:

• Mail order goods fail to arrive, or arrive broken, or faulty;
• You get charged for a transaction twice, or for a higher amount than you authorised;
• You cancel a direct debit authority but the merchant is still directly debiting your account;
• Your credit card is stolen and is being used illegally to buy things – either by forging your signature or buying things over the telephone or online.

Usually, in these circumstances, your credit card provider will reverse the transaction immediately. The provider then seeks a chargeback from the merchant’s bank. Unless the merchant can establish that you, or the secondary card holder, did in fact receive the good or authorise the transaction, the reversal will remain in place. Time limits do apply to reversing transactions, so always check your credit card statements carefully and take immediate action if you cannot account for a transaction that you see. Statements can also be checked via telephone and Internet banking.  Some online auction sites also offer escrow services to protect all parties.

5. Provide only necessary information about yourself
Sometimes businesses request large amounts of information they don’t need, so think about limiting the amount of information before providing. Never send your credit card number by email. Emails are not secure.

6. Save all transaction details
Print out or make note of the seller’s identification, the item description and the time, date and price you paid or bid on the item. Print and save copies of your order confirmation screen and all email communications.

7. Keep your password private
Most e-commerce websites require shoppers to log-in before placing or viewing an order. The shopper is usually required to provide a username and a password. Never reveal your password to anyone.

8. Check the website address
By checking the web address of the company and typing in the URL (Uniform Resource Locater), you can make sure that you are dealing with the correct company. Banks and other legitimate businesses don’t ask for sensitive information via email. Don’t respond to any request for financial information that comes to you in an email. Don’t click on any link embedded within a suspicious email, and always call the retailer or financial institution to verify your account status before divulging any information.

Buyers can also research a website to see how long the site has been online and where it is hosted, see http://www.domaintools.com.

9. If it looks too good to be true, it probably is
Beware of get rich quick schemes or products with extraordinary claims or financial products with extraordinary returns. Use some common sense before purchasing or signing up to products and
services.

10. Install and keep up to date a firewall, anti-virus software and anti-spyware software
This provides additional layers of protection that help to reduce your risk of exposure from viruses that can rob your computer of valuable personal information.

For further information see: www.ahtcc.gov.au or www.bankers.asn.au

See also: www.protectfinancialid.org.au for information about protecting your financial identity.

References
1. This 2008 survey was based on responses from 1001 Australian residents all of whom have computers connected to the Internet. Auscert is a not-for-profit, non Government, member-funded organisation based at the University of Queensland (www.auscert.org.au).