10 Ways to Protect Yourself From Online Fraud
Steer clear of trouble.
As holiday shopping season heats up, more people will be shopping online, and more scam artists will be trying to steal their information (and money). You can protect yourself, without scaling back your purchases, with a few smart strategies. Here are 10 suggestions from privacy and security experts.
Don't take the bait.
Phishing scams, which experts think are responsible for the recent nude celebrity photo hacking, involve victims receiving a request, usually by email, for information from what looks like a legitimate source. When they enter their information (such as passwords or Social Security numbers) on a Web page, they then discover the entity requesting it was actually a scam artist. That person now has access to your passwords and whatever other information you provided.
Be suspicious of online 'friends.'
When you have a lot of friends on Facebook, you might not know all of them that well. In fact, some of them might not be true friends at all. Or even if they are real friends, their accounts might have been hacked, so when they post a link about a great deal on a restaurant or retailer, that link might actually take you to a phishing site. Be especially wary of deals that sound too good to be true or of shortened links with hidden domain names.
Watch out for ticket scammers.
Whether you're buying tickets to an event for yourself or as a gift, you'll want to make sure you're buying the tickets from someone who actually has them. Craigslist recommends doing the money-ticket exchange in person to avoid sending money for tickets that never arrive. Skip requests for money orders or online payments when dealing with sellers.
Change up your passwords.
It's tempting to use the same password for your email, bank account and retail sites, but doing so puts you at risk for hacking. If one site's security is jeopardized, then suddenly the fraudster could potentially access all of your accounts. Sign up for two-step authentication when possible, and create complicated passwords that are difficult to guess.
Complain when goods don't arrive.
Companies are legally obligated to provide the merchandise you order online and pay for; if a package doesn't arrive, then you'll want to tell your credit card company to freeze the payment. Some short-lived online retailers use the holiday season as a way to generate cash from unsuspecting buyers who make purchases that never arrive.
Be wary of 'make money online' ads.
A recent report from the Consumer Federation of America and the North American Consumer Protection Investigators found one common fraud involves solicitations that promise people easy ways to make money online, but only if they put up thousands of dollars of their own money first. One elderly woman in Ohio fell victim to this fraud and lost $11,000.
Check out vehicle history.
Before buying a car from someone online, you'll want to check out the history of that vehicle through the website vehiclehistory.gov. The CFA and NACPI report also cited an example of a consumer in Ohio who bought a used car, only to find that it had been in a previous accident, which caused significant but hidden damage. Buyers can also get cars checked by mechanics before deciding whether or not to buy.
Talk with your loved one before sending money.
Grandparents are often the victims in an online scam, which involves urgent requests for cash from an alleged grandchild in trouble. Of course, the real person requesting the money is not a grandchild at all, but a scam artist hoping to make a quick buck off unsuspecting grandparents. Before wiring money, make sure you know who is really requesting it.
Skip the free Wi-Fi when shopping.
While shopping online at a coffee shop is convenient, it can also put your credit card data at risk. That's because public Wi-Fi networks aren't private, so other people could potentially see the data being transmitted over them. Experts suggest skipping online shopping or conducting financial transactions, including logging into a bank account, while using a public hot spot.
Make your phone safe.
More and more shoppers will be using their smartphones to shop this season, and there's nothing wrong with that as long as you take certain precautions. Since your smartphone contains so much personal data, be sure to add a password to it, so if you lose it, you won't be putting all that data at risk.
