Online Fraud Red Flags
The Internet is open 24 hours a day, seven days a week and offers shopping that can be just as safe as stores or mail orders. However, before making purchases via the internet consumer should know what to avoid. The BBB offers the following red flags to assist consumers in recognizing the signs;
- “It’s Now or Never”/First Come, First Served.
Beware of pressure for an immediate response or frantic claims of limited availability. Any legitimate company will give you time to make a wise purchasing decision. Look on the Web for a reliability seal from an online consumer protection group such as BBBOnLine and do some background checking before you buy.
No Mail Please. If a seller requests payment in cash by a private courier or by cheque or money order through an overnight delivery service, be suspicious.
“Free” for a Price. Don’t trust an offer for “free” products or services that later asks you to send money or pay an upfront fee.
Dazzling Presentation. Scam business advertisements, particularly those sent by e-mail, are often brimming with excessive CAPITAL LETTERS, dollar $ign$ and !!!exclamation points!!!. It’s also not uncommon for these ads to include misspellings or grammatical errors. Con artists hope that a glitzy Web site or flashy e-mail ad will blind consumers into falling for a scam.
“Get Rich Quick” Appeals. Con artists know exactly how to scam consumers who want to make big money quick with little work or effort. The explosion of e-commerce and internet-related businesses has made it easy for cyberspace crooks to con eager buyers into believing that hundreds of dollars invested in an Internet business will instantly turn into thousands of dollars in profit over night. But the only person likely to make easy money in such schemes is the con artist.
Online Shopping Tips
Here are some tips to help ensure that your cybershopping experience is a safe and satisfying one:
- Location, Location. If you're interested in trying a new online merchant who you’re not familiar with, ask the company for its physical location (address and phone number) so that you can check on its reliability with outside organizations like the Better Business Bureau (BBB) and consumer agencies.
- Customer Satisfaction Policy. Determine the company's refund and return policies before you place an order. If online companies can’t offer concrete commitments on how they will handle any potential problems you may have with their products or services, reconsider doing business with them.
- Protect Your Passwords. Never give out your password. When creating a password, avoid using established numbers, such as your house number, birth date, or your telephone or Social Insurance Number. If the site asks you to create an account with a password, never use the same password you use for other accounts or sites.
- Leave Nothing to Chance. Be sure you have a thorough understanding of everything involved before making an order. Be clear on the price and any shipping and handling charges. Know the terms of any product or service guarantees. Find out how long it will be before you receive your order.
- Guard Your Personal Information. Only provide your credit card information or other personal identifiers online in a secure environment. Look for the prefix https:// . . . in the Uniform Resource Locator box which lists the website’s web address to be sure that a site you are using is secure.
- Check For Reliability. Check a company out with your Better Business Bureau. For the phone number or address of your nearest BBB. Also look for a reliability seal from a reputable online consumer protection program such as BBBOnLine (www.bbbonline.org).
- Keep a Paper Trail. Print out the "address" of the company site you are on—its Uniform Resource Locator (URL). The URL ensures that you are dealing with the right company. It's also a good idea to print out a copy of your order and confirmation number for your records.
- Know Your Consumer Rights. The same laws that protect you when you shop by phone or mail apply when you shop in cyberspace. Under the law, a company must ship your order within the time stated in its ads.
Bogus Web sites
Trust makes up the essential glue that holds the rapidly expanding online marketplace together. Con artists that try to pass themselves off as legitimate, reputable online businesses can do tremendous harm to consumer confidence in Internet commerce.
By using widely available tools which can easily copy or recreate digital graphics, a computer-literate cyberspace crook can build a website that looks strikingly similar to that of a legitimate online business. This bogus Web site can lure unsuspecting online consumers into various online scams. The following are ways you can avoid being deceived by a fraudulent Web site:
- Online Trust Marks: Look on the Web site for an online trust mark such as BBBOnLine, and verify it is placed there legitimately.
- Verify the Uniform Resource Locator (URL): URLs contain the information you need for your Internet browser to properly link you to a particular website. URLs are like street addresses. Just as every house has its own address, every Web page has its own address too. Cyberspace crooks cannot duplicate a legitimate company’s URL exactly, but they can come very close. To specifically check for the exact URL of an online business, visit www.whois.net. From this public information site you should type in the Web site URL of the company your are checking where it says "Please Enter Domain Name or Key Word Here". If the URL is in use, it will show who has registered it and the actual physical address of the company. Additional information such as contact name, phone number and fax numbers may also be available.
Quick Check List
To help you shop safely online, take the following common sense steps:
- Don’t Rely on a Professional Looking Website as Proof of a Company’s Quality or Good Reputation.
- Investigate a Company or Seller Before You Buy.
- Find Out Where a Company is Physically Located to Help Avoid Overseas or Offshore Scams.
- Never Give Out Your Bank Account Number, Credit Card Number, or Personal Information Unless You’re Certain a Company is Legitimate.
- Pay for Your Purchases by Credit, Charge Card or online escrow service.
- Start with a Small, Inexpensive Purchase to See How the Company Handles Your Order.
- Find Out About a Company’s Return and Refund Policies Before You Purchase.
- Always Use a Secure Internet Browser That “Encrypts” or Scrambles Your Personal or Financial Information.