The Internet today has become a personal assistant, postman, banker, librarian and retailer all rolled into one. There seems to be no limit to what you can do over it -- buy stuff, pay your bills, check your bank statements, transfer money, trade in shares
While the convenience is enormous, online transactions involve some risks, even though Internet security technologies have greatly improved over the years. The risks include credit card fraud, online banking fraud, identity theft and shopping fraud.
The only way you can minimise the risks of shopping or banking online is by staying vigilant and cautious.
1. Check the reputation of the online seller
Remember, anyone can set up a site overnight and there's no shortage of fly-by-night operators waiting to take your money and scoot. It's always a good idea to buy from reputed shopping sites -- ones that you have heard of through the media, friends and trusted acquaintances.
At the very least, look for a physical address and telephone number on a Web site. Call them up to find out more if you aren't feeling sure. For example, on rediff.com, if you get onto the Web site, you will find a link at the bottom called Investor Information. If you click on it, you will find the address and phone numbers of head offices in the US and India.
Most auction sites have a rating system. It is always a good idea to check a seller's rating and the reviews the seller has received from other buyers before buying a product. To get an idea of how this works, go onto Rediff Auctions and click on any of the products listed there.
2. Read the small print
All reputed online shopping sites have information about their privacy and returns policy. The company should make it clear what it intends to do with the private information that you provide.
Also ensure the site allows you to return the product if you aren't satisfied with it or if it is defective.
3. Buy only from secure sites
The most common mode of online payment is the credit card. Pay through your credit card only on a secure site. A secure site encrypts or scrambles your personal information during transit across the Web to prevent unscrupulous persons from accessing it and using it fraudulently.
One way of identifying a secure site is to look for a small padlock icon that appears on the bottom right-hand corner. Else, Take a look at the address bar: a secure site starts with 'https://' (with an additional 's', instead of the usual 'http://').
There are third-party companies -- like VeriSign for example -- that provide certificates saying a site is secure. Look for them. Avoid using your debit card or your online banking account to make payments over the Web because such payments are irreversible. Stick to your credit card.
4. Use an Internet-specific credit card
If you still don't feel confident about using your credit card online, keep a separate credit card for online use with specified transaction limits.
Some banks -- like HDFC Bank through its NetSafe service -- allow you create temporary credit card numbers with your existing card that are valid for a specified time, for a specific transaction, with a transaction limit of your choice.
Besides, there are many cards such as ITZ Cash Cards that are meant specifically for online shopping.
5. Beware of those who go 'phishing'
In 2003, people got e-mails that were purportedly from eBay asking them to go to a particular Web site and update their credit card information and other details to continue being a registered member. However, it turned out that the e-mails weren't sent by eBay at all but was a 'phishing' attack to get hold of users' information and use it to defraud them.
So, when you click on a link sent through email by a supposedly reputed company, make sure it leads to the legitimate site. A fake web site may look like the original, but will have minute differences that can be detected if you look closely enough.
If you have suspicions about the URL being sent in the e-mail, don't use it. Instead, go directly to the company Web site and log in from there. Never ever send personal information to sites you don't know much about; more important, don't send confidential and sensitive information through e-mail.
6. Be wary of shared computers
Avoid cybercafés or other public terminals for online shopping or banking. There are many ways in which unscrupulous operators can log your activities such as keystrokes or through a hidden camera and crack your online accounts. If you are using a shared computer, always log out before you shut the browser.
7. Be vigilant
Keep constant track of your online transactions. Make sure the payments that have been recorded in your statement have indeed been made by you, and take printouts of your transactions. Notify the bank immediately if you find anything fishy.
8. Protect your password
Don't use a password that's predictable, like your surname or your birth date.
Using alphanumeric characters (alphabets and numbers). If possible, use a password that is a mix of lower case and upper case characters.
Remember not to write down the password -- and customer ID and PIN numbers in the case of Internet banking -- anywhere. Don't, in any case, keep them in your wallet with your ATM card! Don't use the 'Remember my password' option, especially on public terminals. Keep changing your password frequently.
9. Use separate email IDs
Most online activities, such as shopping or subscribing to newsletters, will require you to provide an e-mail ID. Don't use your primary e-mail account for these activities. Create a separate e-mail ID.
If you are posting to public forums, do not leave your primary e-mail address. If you must, spell it out. For example: yourname at the rate xyz dot com, instead of yourname@xyz.com.
Spammers use programmes that harvest (collect) anything that looks like an email address from the Web. Never reply to a suspicious e-mail or spam, and never open an attachment that comes with an e-mail from an unknown sender.
10. Keep your machine secure
Install anti-virus software. If you can't afford one, there are many free anti-virus programmes such as Avast and AVG. Keep your anti-virus programme, as well as your other software such as your browser and operating system, updated.
For additional protection, use free programmes such as Ad-Aware and Spybot to keep your machine free of spyware.
