What risks are involved when shopping online and how can you reduce them?

As consumers in a digital age, many of today’s online shoppers imagine that, because they have verified the company with which they are transacting business is a legitimate one, they have no reason to be anxious about the dangers of online shopping. Sadly, those individuals may be living in a fool’s paradise. Much of the identity theft that continues to plague internet shoppers has more to do with a company’s security than its business practices. Even websites owned and operated by the Federal Government might be subject to hackers who seek YOUR personal information. Internet theft may be a booming global business, but it is not the only way cyber-thugs can rob you. Being aware of the risks and knowing how to shop online is important today, maybe more than ever before, in order to protect your credit.

Online Shopping Risks

The risks that come immediately to mind in a discussion of internet shopping go far beyond identity theft. Because we cannot see or touch the products offered by online stores, they might well be of inferior quality, not match the description, or even be totally nonexistent. These products may not ever arrive or, if they do, they may not be what you thought you were purchasing. Even if you read the glowing reviews online, understand that fake reviews are commonplace today and are often written by people who are just as clueless about the product as you are.

Some fraudulent sites will charge you over and over again for the same purchase. For this reason it’s imperative that you check your credit or debit card statements regularly to see if the company is re- submitting your card. Another way to know if you’re being victimized is to check your credit report. If you find that you are a victim of credit card fraud or think you might become one, you may place a fraud alert on your file. The benefits of fraud alerts and credit reports are that you can add an extra layer of security to make it more difficult for credit card fraud to take place.

How to Avoid the Risks

Online shopping can save time, energy, money, and aggravation. Now that the entire nation is accustomed to online shopping, it has become something of a necessary evil. In order to prevent credit card fraud, shoppers must be very careful about knowing with whom they are dealing. It is extremely difficult to be certain of the legitimacy of an online retailer. The best advice is to remember that size does count. Shop with retailers you know. Big companies which may have a presence in your community like Walmart or Target, or well-known online portals such as Amazon or Overstock, that have established excellent reputations are the least likely to cause you grief.

Know the Enemy

Education is the final key to avoiding being defrauded by online merchants. You owe it to yourself and your family to learn the ways in which the bad guys might obtain personal data from the internet. When you understand that if the crooks of the world can obtain your birth date, wedding anniversary, your middle name, your pet’s name or your son’s football jersey number, you see how they can probably also tap into your bank account. Humans are enormously predictable and use such little factoids as internet passwords and pin numbers. This opens your financial solvency to untold peril. It isn’t enough that the grownups in your household know how to avoid the traps, either. Keeping your family safe also includes teaching internet safety for teens. Sadly, children also need to know the unhappy facts of dealing with the not-so-nice others in the world.

Online shopping is a boon not just to commerce, but also to the convenience of humans the world over. But, like all things convenient, there is a price to pay. That price is vigilance. Even careful monitoring of your credit report and transactions may not always keep you safe. Such watchfulness can keep the damage done to your carefully grown credit to a minimum. Your creditworthiness is essential in today’s world. Guard it carefully.

Amy Johnson is an active finance blogger who is fond of sharing interesting finance management tips to encourage people to manage their personal finances. More specifically, she advocates that people should check credit reports and scores regularly.