Online shopping fraud

Online shopping frauds are as wide as the imagination of the fraudster. The fraudster may set up an online store purely for the purposes of committing fraud, or a long established company may commit acts of fraud against their clients just before closing their business.

How does this work?

With online shopping, there are numerous opportunities to buy goods at better prices better than in a retail shop. However, a level of trust is required and both the buyer and seller need to understand the integrity of the other party.

Common examples of online shopping fraud include failing to deliver goods paid for, sending an inferior quality product, sending less than the quantity provided, failing to honour warranties and taking excessive sums of money off the credit card used for payment.

How do I protect myself?

Computer security

• Check that you are using a secure browser. Browsers use Secure Socket Layer (SSL) encryption for secure transactions such as bank or other sites which require you to provide your user name and password. Your address bar should read https:// when you arrive at a secure site. Also, look for a padlock that also shows you are transmitting to a web site using encryption.
• Check that the padlock is unbroken.
  • The padlock shows that you are using a secure method to send sensitive data such as personal information or payment details. 
• Install and update virus protection and firewall programs. These programs help prevent unauthorised access to the information on your computer.
• Check for attachments to the keyboard connection cable. Some attached devices can record every keystroke, including your passwords!
• Check for any unidentified software on the computer. Some software programs can record all keyboard activity.
• Check the security certificate is registered to the site you are visiting. You can check the security certificate by clicking on the padlock and viewing the certificate details through the tabs.

Shopping online

• Research companies you deal with before sending any payments. There are many sites where you can check on the trading history of a business before you do buy goods from them.
• Identify delivery and return policies, including warranty details.
• Where possible, use a service such as PayPal which provides the buyer higher levels of security.
• Purchasing by credit card is safer than using an interbank transfer as you can seek the assistance of the credit card company if there is a problem.
• Keep a written record of your purchases and check these against your credit card statement.
• Look for a physical address and phone number for the company should you need to contact them. This should be considered before making the purchase.
• If there is a problem and you are concerned about your identity details being compromised, contact the national identify support network IdCARE. (No charge for individuals)

Download the Shopping Online Brochure.