Is Online Shopping Really Safe?

by Larry Magid

The first thing you need to know about safely shopping online is that, compared to other ways of shopping, it's reasonably safe. To begin with, you are shopping in the comfort and relative safety of your home or office. There are no traffic mishaps to worry about, no risk of pickpockets and purse snatchers, and no chance of catching a cold from that person behind you in line. I say this not to be facetious but as a reminder that all activities - including a trip to the mall - carry some risks.

When it comes to online shopping, one of the biggest risks is dealing with an untrustworthy merchant. If you're inclined to buy from a merchant you aren't familiar with, do a little research. Here are a few things you can do to check out a merchant:

• Make sure the site includes a real street address and phone number, and call that number if you have any doubts. That's no guarantee the merchant is legitimate, but it is a start.
• Look them up at the Better Business Bureau Web site: (www.bbbonline.org) or by using a search engine to see what others have said. (For example, if you wanted to see what people are saying about a company called "Henry's Hot Sauce," try searching for Henry's Hot Sauce + scam or Henry's Hot Sauce + review to see if anything has been posted about the company.)
• Read the site's privacy policy. If there is no privacy policy, move on.
• Check to see they are a TRUSTe sealholder. TRUSTe is a respected industry supported nonprofit organization that vets companies to be sure they adhere to their privacy policies. Some sites have a TRUSTe logo (typically on their privacy page) but the best way to be sure is to look them up at www.truste.org.
• When dealing with auction sites, look for ratings. eBay, for example, has a rating system that allows customers to provide feedback about merchants.
• Some sites, including Amazon, have affiliated merchants, so look at their policies, too. You can find their privacy statement by clicking on their name or logo (which is part of the listing) and looking for "privacy statement" at the bottom of the page.

Trusted Web sites such as Shopping.com, FatWallet.com, Bizrate.com and Yahoo shopping vet online member merchants, but merchants and other sites that you find through a general search engines are typically not pre-screened by the search engine company.

If something seems too good to be true, it probably is. If you find a merchant with an online price that is significantly lower than anyone else's, think twice before buying. It could be a genuine deal, but it could also be a scam or a "gray market" item not licensed to be sold in the United States. Or it might lack something like a manual, battery, or power cord.

Other recommendations for safe online shopping:

• Make sure the site is using a secure server by looking for a lock in the lower right corner of your browser on the checkout page and "https" or "shttp" as part of the URL.
• Pay by credit card to take advantage of federally mandated dispute resolutions in case of fraud. If you do a lot of online shopping, consider dedicating a card just for this purpose. That way you know all charges on this card are for online use. If you don't plan to use a credit card, consider paying through eBay's PayPal service that also provides a certain amount of fraud protection. Be cautious about using a debit card, because it allows the merchant to take funds directly from your checking account. Check with your bank about whether it offers anti-fraud protection for debit cards.
• Use secure passwords with an unpredictable sequence of letters and numbers. One trick is to create a phrase like "I met Sally in 92" and use the abbreviation ImSi92 as your password. Change the password periodically and don't use the same password on all sites.
• Make sure you keep records of all your online transactions. Either print out the confirmation page or copy and paste it into an email to yourself.

Happy shopping.