6 Tips for Safe Online Shopping

Bankrate.com, 11/18/2005

By Leslie Hunt

You've settled on the perfect Christmas gift for that special someone. On clearance from Bobsyouruncle45, the new laptop computer is going to cost you a mere $65. Getting your Visa card out of your wallet, you click over to the checkout page and get ready to seal this spectacular deal.

Not so fast.

If you don't know from whom you're buying, and are simply praying for good luck after sending your payment over the Web, you're setting yourself up -- and not just for losing money. You're risking your personal information, and it's time for a rude reality check.

It makes sense that security is not always a bedfellow of convenience. Open 24 hours a day from anywhere in the world, online shopping sites entice consumers with an array of come-ons such as free shipping, comparison pricing, bargain deals and extra security features. Saving gas, and being able to shop on your schedule, adds more to the online shopping appeal.

Yet, the question remains for the leery: Can online shopping be done safely?

The Internet security experts we spoke with say "yes" -- on the condition that consumers abide by some basic safety tips.

1. Bigger names equal better protection

"Go with reputable companies you've heard of," says Jim Stickley, co-founder and vice president of engineering at TraceSecurit, a company that works with financial institutions to better their network security systems to deter identity thieves.

Stickley, who knows firsthand how easily sensitive information is stolen, says that if a deal sounds too good to be true -- say, $20 for that new iPod Nano -- it probably is. What's worse, it's probably an attempt to trick you into giving out personal information.

Steven Branigan, founder and president of CyanLine and author of "High Tech Crimes Revealed" agrees and says that it's good to know the site you're going to, such as the bigger sites like Amazon.com. "These sites put their name on the line."

On the other hand, the fear factor hurts smaller merchants who might have better deals. One comparison shopping site,buysafeshopping.com, solves both problems by bonding qualified merchants for up to $25,000 with Liberty Mutual. BuySAFE puts merchants through a screening process to verify the merchant's identity, online sales experience and ability to deliver the purchased items. If a retailer passes that process, buySAFE is willing to stand behind them with its purse, says Jeff Grass, CEO and president, and Rod Caskey, senior director of buyer marketing.

2. When in doubt, check them out

If you go with an unknown merchant or Web site, contact someone there who can verify the company's privacy policy for you before you make a purchase. Ask if they'll send you a catalog.

"If they don't list phone numbers and only have an e-mail address, that's a huge red flag," Stickley says. "Call the phone number and see if it goes to voice mail. Anyone can have voice mail set up."

Bottom line: If you can't get a human being on the phone or don't like what you're hearing, go shopping somewhere else.

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