By Andrew Housser
In the "good old days," people only needed to worry about avoiding having their pockets picked when they were holiday shopping. Today, things are more complicated. Modern holiday shoppers can overspend extravagantly when shopping online -- or fall victim to online frauds.
With the new tradition of "Cyber Monday" shopping on the Monday after Thanksgiving, and online shopping becoming more and more popular throughout the holidays, it's a good time to review how to shop safely online.
1) Start with a plan
Before you log on, make a list. Include those for whom you will buy gifts, and ideas of what you plan to get for them. Add up the approximate prices and be sure your gift list fits within your budget.
2) Think about combining purchases
Often, you can qualify for free shipping or discounts if you make a larger purchase from one store. Plus, you might avoid temptation and impulse shopping by purchasing more gifts in one shopping cart.
3) Use one credit card
When you purchase online, put all your purchases on one card. You will be easily able to track exactly how much you have spent so far, and it will be easier to review your statement and watch for fraudulent charges. You can also choose to pay for online purchases with a service like PayPal, which keeps your financial information private and allows you to pay from your bank account, not a credit card.
4) Keep debit cards offline
If you are a victim of fraud, credit cards offer some protection. Debit cards might protect you, but if someone steals your debit card number, they might be able to clean out your checking account. It is smarter to avoid using a debit card online.
5) Don't click on links
Online security experts recommend never clicking on links in e-mail messages. More and more fraudulent e-mails are very sophisticated, and can even look like real messages from your bank or credit card company. If you receive an offer that you are interested in, open a new Web browser, and type your credit card company's or other website address directly into the browser.
6) Be sure you are secure
Always check the authenticity of a Web page before entering information. Make sure your browser sees the site as secure (look for the "lock" symbol on most browsers, in the lower right-hand corner). Most importantly, shop only with retailers you trust. If you are offered the option to save your credit card information, choose not to save it.
7) Shut down fraud
If you are completing financial transactions online, always log out of the account when you are finished. Then close the browser window so others can't access your information.
8) Report questionable charges immediately
Review your credit card statement closely. If you see anything suspicious, call your credit card company. You might also need to complete a written affidavit for the credit card lender. Take the necessary steps to avoid paying for debt you did not incur.
9) Do not give out personal information on the phone
If you receive a phone call from someone who says they are from your credit card company or selling a special deal, be cautious. Never give out personal information on a call you did not initiate. To be safe, thank the caller, hang up and then dial the customer service number printed on your credit card or on a mailed statement. Ask about your account only when you are certain you have reached the real company.
10) Watch for strange computer behavior
Some new viruses and computer Trojans set up camp in your computer and then steal passwords or other personal information. If your computer begins to operate differently, be wary. If your computer starts or shuts down unexpectedly, begins operating very slowly, will not shut down or otherwise changes the way it works, consult an expert in malware repair.
Of course, you can always do your holiday shopping the old-fashioned way, by taking cash in person to stores. That method will guarantee you do not overspend, and it will reduce much of the danger of fraud. But there is no denying that online shopping can be convenient and thrifty. Just take care to take appropriate measures when you shop.
Always check the authenticity of a Web page before entering information. (©iStockphoto.com/Joselito Briones)
Andrew Housser is a co-founder and CEO of Bills.com, a free one-stop online portal where consumers can educate themselves about personal finance issues and compare financial products and services. He also is co-CEO of Freedom Financial Network, LLC providing comprehensive consumer credit advocacy and debt relief services. Housser holds a Master of Business Administration degree from Stanford University and Bachelor of Arts degree from Dartmouth College.
