Whether you’re online shopping for an upcoming vacation or for holiday gifts, hackers, scammers, and online thieves are constantly on the prowl looking to take advantage of unsuspecting consumers.
There were 5.5 million complaints of consumer fraud and identity theft filed in 2023 with the Federal Trade Commission and tracked by the Consumer Sentinel Network. The top three complaints filed were identity theft, imposter scams, and fraudulent government benefits applied for or received.
According to the Cybersecurity and Infrastructure Security Agency (CISA), would-be criminals search for weaknesses in consumer’s devices or internet connections. They also attempt to extract personal and financial information from fake websites.
To avoid the many risks associated with online shopping, the CISA and the Federal Trade Commission (FTC) have numerous ways you can try to protect yourself.
Shop with reputable retailers
When shopping, it’s best to stick to online retailers you know and with whom you have shopped before. If it’s a retailer you have never shopped with, research beforehand like checking customer reviews and complaints with the Better Business Bureau. You can also ask a family member or friend if they’ve shopped with the retailer and what their experience was like.
Be wary of free offers and deals
Free! 20% off! Sure, sounds good. But before you click on any links, make sure the website making those offers is legitimate and not a fake website that will steal your information and credit card number. If you normally shop at the same online retailers, offer codes will be displayed at the top of their websites and they will also be in your online account.
Use secure networks
When making purchases online, refrain from using public Wi-Fi and use a VPN (virtual private network) to create an encrypted tunnel between your computer and the server. This will help hackers from intercepting your information.
Shop only on secure sites
Check a webpage’s security by looking for the lock icon in the URL and making sure the URL starts with “https” and not “http.” The lock icon verifies that the website uses SSL (secure socket layer) which is configured to mask data like passwords and financial information. If you don’t see the “s,” which stands for secure, you should not use the website.
Be mindful of passwords
If prompted to create an account with a retailer, choose a password different from something you already have for other accounts. Your password should be a combination of numbers, upper and lower-case letters, and symbols. Passwords should never include any personal information that can be easily guessed like your name, child’s name, or pet’s name. It’s also a good idea to use different passwords across personal accounts, online retailers, and work so that if a hacker does compromise a password, they only have that one.
Skip optional fields
When filling out information on a reputable retailer’s website, skip optional fields and only provide the information required to complete the purchase. Never give out your social security number.
Review app settings
Most apps ask for your personal information, and many will collect information about what you purchased. Many apps also rely on location data. The FTC recommends that you review privacy settings and terms of agreements. If you do not agree, do not use the app.
Only use a credit card to make purchases
When making purchases, you should always use a credit card, as credit card companies offer protection and generally resolve fraud claims in favor of the consumer. Be sure to check your statements often to make sure there are no unauthorized charges. If there are, flag the charges and notify the credit card company right away.
Never use a debit card when making an online purchase in case a hacker gets a hold of your card number and could very quickly drain your account. Reimbursement on a debit card may also be less than what a credit card company may offer.
If an online seller asks you to mail cash or wire money, it could be a scam. Avoid paying this way.
Track purchases
Once a purchase has been made, make sure you are tracking the shipping status so that you have an idea of when your package will be arriving. In addition to email updates, many retailers will also send text message updates to let you know of the package status.
Check statements after purchase
Credit card and bank statements should be checked regularly but should certainly be checked after making online purchases to ensure charges are correct and that no fraudulent charges have been made. It’s also a good idea to set up your accounts to send you text or email notifications when new purchases are made so that you can keep track of things. Lastly, keep confirmation numbers and emails of all online purchases you make until you get the items. This will not only help confirm you get the correct purchase, but you may need to make a return.
If you do fall victim to fraud or a scam from an online purchase, you can report it to ReportFraud.ftc.gov, the federal government’s website. If you think you are a victim of identity theft, the Federal Bureau of Investigation’s Internet Crime Complaint Center offers an identity theft recovery plan.
What kind of identity fraud protection can MAPFRE offer?
Before you become a victim of identity fraud, you might want to consider protecting yourself with MAPFRE’s Identity Fraud Expense optional coverage as an endorsement on your homeowner’s insurance policy.
The endorsement provides up to $15,000 in expenses for a loss arising out of identity fraud. The limit applies to expenses incurred as the direct result of any one identity fraudulent event discovered or realized during your policy period and is subject to a $500 deductible.
We hope these tips make your online shopping easier and more secure! Be sure you also have the right coverage for your home and auto by talking to an independent agent in your state. And if you’re not already insured with MAPFRE and live in Massachusetts, get a fast, free home insurance quote today to see how much you could save!
