Tips for avoiding identity theft when buying Christmas gifts over the Internet

The Internet plays an important part in holiday shopping. It’s convenient, quick, you can shop at any time in the comfort of your home and it is a great way to get hard-to-find products.

But buyer beware — shopping online can have its pitfalls. Identity theft has become more common so consumers must be particularly careful.

There are several things you must consider before you begin cyber-shopping.

• Shop at secure websites. A secure website uses encryption technology to transfer information from your computer to the online merchant’s computer.

Encryption scrambles the information you send, such as your credit card number, to prevent computer hackers obtaining it en route.

The only people who can unscramble the code are those with legitimate access privileges.

You can tell when you are dealing with a secure website in several ways.

First, if you look at the top of your screen where the website address is displayed, you should see https://

The ‘s’ displayed after ‘http’ indicates that site is secure. Often, you do not see the ‘s’ until you move to the order page of the site.

Another way to determine if a site is secure is to look for a closed padlock displayed at the bottom of your screen. If that lock is open, you should assume it is not a secure site.

The third symbol that shows you are on a secure site is an unbroken key.

• Know your merchant. Be familiar with the name and reputation of any company you deal with online.

If you plan to shop with an unfamiliar firm, do your homework before buying their products and start out with an inexpensive order to determine if the company is trustworthy.

Reliable companies should advertise their physical address, e-mail address and at least one phone number. Call and ask questions to determine if the business is legitimate.

• Check the privacy/ security policy. Reputable websites will offer information about how it processes your order, usually listed in the section entitled ‘Privacy Policy’ or ‘Security Policy’.

Will the company collect your personal information to share or sell without your consent?

If the firm markets to its customers you can expect to receive spam (unsolicited e-mail) and even mail or phone solicitations.

• What are the cancellation, return and complaint-handling policies? Despite best efforts, consumers sometimes need to return merchandise.

Find out if there is a restocking charge if you need to cancel or return the order. Do you get a store credit or will the company fully refund your charges?

If the merchant only offers store credits, find out the time restriction for using this credit.

Is there a customer service e-mail address and/or phone number for queries or complaints?

Can the items be repaired or serviced in Bermuda?

If there is a warranty on the product, what are the terms and conditions and does it apply to Bermuda?

What is the time limit or other restrictions to the return or cancellation?

Who pays the shipping if the item is returned?

• Key shipping questions. Are there any geographic or other restrictions for delivery? Are there choices for shipping?

Who pays the shipping cost? Is shipping insurance available?

What are the shipping and handling fees and are they reasonable?

• Stick to the facts. When placing an order, you must provide certain details, such as your name and address — sites will mark mandatory questions with an asterisk.

But do not answer questions that you feel are not required to process your order, such as lifestyle or income questions.

This information is most often used for marketing purposes.

• Watch out for ‘phishing’ messages. There is no shortage of e-mails from identity thieves that ask us to update the account information for their banks, credit cards, online payment service or popular shopping sites. The e-mail may state that your account information has expired, been compromised or lost and that you need to immediately resend it to the company.

Legitimate businesses do not ask for sensitive information via e-mail so do not respond at all and do not click on any link embedded within a suspicious e-mail.

Costs

Always print and save copies of your orders

After placing an order online, you should receive a confirmation page that reviews your entire order.

It should have a confirmation number and include all the costs of the order, your customer information, product information, company name, address, phone number and legal terms and conditions. The confirmation page should also include return and warranty information.

If you receive a confirmation message via e-mail, print and save that as well.

If you encounter problems with merchandise bought overseas, Consumer Affairs can only provide assistance in putting you in contact with a Consumer Affairs authority in the country or state in which the merchandise was obtained.

Buying online has its benefits but remember to shop around for the best price and make sure your card details are safe and secure before you make a purchase.

Honey Adams is the education officer for the office of Consumer Affairs. For more consumer savvy information, visit www.ca.gov.bm