Safe Consumer Online Shopping Tips
"Our survey shows that consumers are still worried about putting their
credit card online," says Susan Grant. "But credit cards are the safest
way to pay because you can dispute the charges if something goes wrong,
and substitute credit card numbers add an extra measure of protection
against someone fraudulently using your account."
E-commerce is big business–consumers spent nearly $26
billion online last year, according to the U.S. Department of Commerce.
But a recent survey commissioned by the National Consumers League shows
that many people are worried that their personal information may fall
into the wrong hands.
The most common fear is that their credit card
numbers might be stolen. "Consumers like the convenience of shopping on
the Internet and using their credit cards, but they want to be assured
that it’s safe," said Susan Grant, director of NCL’s Internet Fraud
Watch. The second most common concern is that their personal information
may be abused.
The survey found that consumers would be more
confident using their credit cards online if they take advantage of new
technology that allows them to do so without giving their real account
numbers.
Get the scoop on the seller.
More than a quarter of the survey’s respondents
believed that companies must be screened before they can put up Web
sites. That’s not true, so it’s important to check the complaint records
at your state or local consumer protection agency and the Better
Business Bureau. Get the physical address and phone number in case you
must contact the seller offline. Look for sellers that belong to
programs that encourage good business practices and help resolve
complaints.
Six Tips for Shopping Online Safely
Use a credit card.
Nearly two-thirds of consumers incorrectly answered
that it’s safer to pay for an online order by check or money order than
by credit card. Credit cards are the safest way to pay because you have
the legal right to dispute charges for goods or services that were never
ordered, never received, or misrepresented.
Ask about "substitute" or "single-use" credit card
numbers.
Some credit cards now provide "substitute" or
"single-use" numbers, linked to your account, that you can use for one
purchase only (sometimes they can also be used for regular payments to
the same company). Since you never put your real account number online,
your financial information is safe from abuse by "hackers" or dishonest
company employees.
Look for clues about security.
When you provide payment information, the "http" at
the beginning of the address bar should change to "https" or "shttp."
Your browser may use a symbol 
in the bottom right corner to show whether the information is being
encrypted, or scrambled, as it is being sent. See what Web sites say
about how they safeguard your information in transmission and storage.
Don’t provide sensitive information by email.
Know the real deal.
More than half of the consumers surveyed thought they
have three days to cancel an online purchase. There is no automatic
cancellation right, so get all the details before you buy: a complete
description of the items; the total price, including shipping; the
delivery time; warranty information; the return policy; and what to do
if you have problems.
Keep proof handy.
Print and file the information in case you need proof
later.