It is that time of year again. Whatever holiday you celebrate, Americans nationwide go to their favorite online retailers to buy holiday decorations, party supplies, and gifts to make the season merry and bright. The convenience of the internet is hard to resist, but the freedom and flexibility of online buying come with some grave risks. 

Cybercrime is on the rise. In a recent year, the Federal Trade Commission (FTC) received 2.6 million fraud reports, with losses totaling over $10 billion. A significant portion of these incidents were directly related to online shopping scams and identity theft. By being alert and educated, you can keep your holidays truly happy this year. 

• Use the maxim, “If it looks too good to be true, it probably is.” Scammers often use unbelievable deals to lure in naive shoppers or give a false impression that something is free when it’s just a ploy to grab your bank details. An offer to earn “$17,000 in Bitcoin for free!” when you sign up sounds great, but the platform won’t let you withdraw anything, even after you input your credit card number.

• Stick with brands you know; research those you don’t. Big-name brands have a reputation to uphold. They have a duty to the public to ensure online transactions are safe and secure and a more extensive process for protecting against identity theft. When attracted to an item a new e-retailer offers, verify its legitimacy by looking it up on independent review sites. Only purchase from an unknown retailer after some research. 

• Make payments with credit instead of debit cards. Credit cards work better than debit cards for fighting fraud. You can get actions reversed or canceled by speaking with the company. When a debit card is used, the money is gone as soon as it leaves your bank, and it can be more complicated, or in some cases impossible, to have your money returned to you. 

• Access only secure websites. Another good tip on website security is to look at the lock symbol in the search bar at the top of your web browser. The symbol means the page is secure; passwords and personal information entered will be private. Another safety indicator is if the URL starts with HTTPS, the “s” stands for secure. If there is no “s,” the site may be more easily hacked—and your information with it. 

• Consider getting personal cyber liability insurance. Most people do not know that you can purchase insurance that will protect you against certain types of online cybercrime. Personal cyber liability insurance can cover fraud losses, identity theft, and even data restoration after a cyber incident. 

• Avoid public Wi-Fi while shopping. Public Wi-Fi is precisely that: public! A hacker’s dream. Cyber thieves can record your keystrokes from afar if you enter your details using the public internet. Avoid using public Wi-Fi services if you need to shop online when you are out and about.

• Open email links with caution. Scammers are getting smarter every day, posing as your bank, the retailer you just visited, or the store where you recently purchased an item. Look out for messages that pressure you to urgently take action or ask you to “re-enter your credit card details” because your transaction failed. Rather than click the link, visit a reputable website or call the retailer to see if the email is legitimate or a scam. 

• Use secure passwords. A unique password with upper- and lowercase letters, numbers, and symbols is one of your best defenses against cyber criminals trying to access your accounts. 

• Track your bank statements regularly. If you keep an eye on your spending as a matter of course, you’ll be able to catch odd charges or indicators of fraud right away before it is too late to have your money returned to you. If you see something suspicious or off, call your bank immediately to report the matter or get the charges reversed.
• Avoid storing financial information online. Yes, it is easy to save your credit card details with every retailer you love, so you can “click and go” when at checkout. Remember that any retailer can run into security issues—as has been proven repeatedly. If there’s a breach, your data is at risk. Take an extra 30 seconds to re-enter your card data so your personal information is not saved on dozens of sites across the web.

Stay Safe, Shop Smart

Remaining vigilant and aware can save you from the incredible hassle of resolving financial fraud or identity theft. With these tips, you can shop safely and enjoy the winter holiday. 

If you want to know more about personal cyber liability insurance benefits, our local agents are happy to answer any questions. We’re here to help you achieve peace of mind, knowing your financial health is protected online.