Stay Safe When Shopping Online

by Center for Personal Finance editors

The Internet has made it possible to shop 'til you drop without even leaving the comforts of home. But before you start finding the best bargains, remember that safety must come first. The Federal Trade Commission (FTC) says to follow these steps in keeping your computer and private information secure:

• Use antivirus software and a personal firewall, and keep them up-to-date. Antivirus software scans incoming messages for problem files. Effective antivirus software recognizes current viruses as well as older ones, reverses any damage, and updates automatically. Update your antivirus protection software regularly. A firewall blocks unauthorized access to your computer.

• Keep your Web browser and operating system up-to-date. Set your Web browser security setting high enough to detect unauthorized downloads; put the setting at least at the "medium" level for Internet Explorer. Check if your operating system offers free software patches to close holes in the Web browser or operating system that spyware, hackers, or phishers could exploit.

• Don't e-mail any financial information. Never put credit card, checking account, or Social Security numbers in an e-mail message. If you initiate a transaction and want to provide payment or personal information through an organization's Web site, make sure the site has a lock icon on the browser's status bar and a URL for a Web site that begins with "https" (the "S" stands for "secure").

• Be suspicious of all attachments. Don't open them, even if they look like they're from a friend or co-worker, unless you're expecting them or know what they contain. Never click on links in pop-up ads--they could install harmful files on your computer.

Here's some advice from the FTC for your online shopping experience:

• Shop with familiar companies. Confirm the seller's physical address and phone number in case you have problems or questions.

• Know exactly what you're buying. Read the fine print on the seller's product description. If you see the words "refurbished," "vintage," or "close-out," that may indicate the product is less-than-mint condition.

• Know what it will cost. Seek price comparisons on other Web sites. Pay with a credit card; you have federal protections with plastic that you don't have with any other form of payment. Factor in shipping and handling costs. Don't send cash under any circumstances.

• Keep a paper trail. Print and save records of online transactions, including e-mail messages. Read credit card statements and watch for unauthorized charges.

• Check the company's privacy policy. The policy tells you what personal information the Web site operators are collecting, why they need it, and how your information will be used. If you can't find a privacy policy or you don't understand it, consider doing business on another site that's more consumer-friendly.

• Check the company's return policy. Is there a restocking charge for big-ticket items? Do you get any help with return postage? Is there a time limit?

Published October 30, 2006

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