Essential Tips for Safe Online Shopping: Understanding the Risks and How to Protect Yourself

Online shopping offers convenience, variety, and sometimes even better prices than traditional brick-and-mortar stores, with global retail eCommerce sales expected to reach $8.15 trillion by 2026. However, this growth has also led to a rise in cybercrimes such as phishing scams, mobile spam calls, and credit card data theft. In fact, 54% of consumers have encountered suspicious online activities, with 21% concerned about credit card theft.

While online shopping is generally safe, but cybercriminals use tactics like social engineering to steal personal information, leading to financial loss. North America’s online payment fraud rate is 42%. Protect yourself by using secure websites, avoiding suspicious emails, and connecting to encrypted Wi-Fi. Staying vigilant ensures a safer shopping experience.

One of the most significant concerns with online shopping is the risk of identity theft. Cybercriminals may use various tactics, such as phishing emails or fraudulent websites, to trick users into providing personal and financial information. Once they have access to sensitive details like credit card numbers, addresses, and Social Security numbers, criminals can make unauthorized transactions or sell the information on the dark web. Global payment fraud is expected to rise to $40.62 billion by 2027.

Hackers often create counterfeit websites that mimic legitimate ones by copying layouts, logos, and designs to appear credible. They lure customers with attractive deals on electronics, clothing, and jewellery, but these offers are often scams, resulting in either non-delivery or counterfeit products.

When shopping online, you’re often required to enter personal information such as your name, address, email, and payment details. If the website you’re shopping on lacks proper security protocols, this sensitive data could be intercepted by hackers. Data breaches have occurred at numerous major retailers and online platforms, with personal information exposed, leaving consumers vulnerable to identity theft and fraud.

Using unsecured public Wi-Fi networks for online transactions is risky. Hackers can intercept data on these networks, gaining access to sensitive information or installing malware on your device during payments.

Phishing scams are another common risk of online shopping. Fraudulent emails, pop-up ads, or fake social media pages may prompt shoppers to click on malicious links or download harmful software. Additionally, fake reviews can mislead consumers into purchasing products that aren’t as advertised. Scammers may create convincing fake reviews to manipulate ratings, pushing inferior products or services onto unsuspecting buyers.

Websites without updated SSL certificates (indicated by HTTP instead of HTTPS) are vulnerable to cyber-attacks. Shopping on such sites, especially when making payments, is highly risky due to the lack of encryption for sensitive information.

One of the best ways to protect yourself when shopping online is to buy from trusted, well-known brands. Look for signs of legitimacy, positive customer reviews, and secure payment options. Be wary of unfamiliar websites offering products at unreasonably low prices, as they could be fraudulent. Check for “HTTPS” and a padlock icon in the URL, which indicates encryption for data protection. If these signs are missing, refrain from entering sensitive information.

While public Wi-Fi is safe for basic browsing, avoid using it for sensitive tasks like online payments or banking. Cybercriminals can hack into these networks to monitor activities and steal your login credentials. It’s safer to use a mobile connection for such transactions.

A Virtual Private Network (VPN) encrypts your online activities, protecting your data from hackers on public Wi-Fi. It also masks your IP address, making it harder for cybercriminals to track you. Always use a VPN when accessing sensitive information on public networks.

To minimize the chances of your account being compromised, use strong, unique passwords for each of your online shopping accounts. Additionally, many online retailers offer two-factor authentication (2FA), which adds an extra layer of security by requiring a second form of verification, such as a code sent to your phone, before granting access to your account.

Credit cards are safer than debit cards for online transactions because they aren’t directly linked to your bank account. If fraud occurs, credit card companies provide faster dispute resolution and financial protection.

After making an online purchase, regularly check your credit card and bank statements for any unauthorized transactions. If you notice any suspicious activity, report it immediately to your bank or card issuer. Many credit card companies offer fraud protection, which can help minimize losses in the event of a scam.

Before making a purchase, take the time to read customer reviews and ratings of the product and seller. However, be mindful of fake reviews, which can manipulate your decision. Look for reviews from verified purchasers, and if possible, cross-reference them on third-party review sites to get a more accurate picture of the product’s quality and the seller’s reliability.

Shopping online can be a convenient and enjoyable experience when you take the necessary precautions to safeguard your personal and financial information. Using secure websites, opting for credit cards or trusted payment gateways, and regularly monitoring your bank statements are key steps in reducing the risk of fraud or unauthorized access. By following these best practices, you can ensure that your online shopping is both safe and stress-free.

(Article by Mr. Shibu Paul, Vice President – International Sales at Array Networks, and the views expressed in this article are his own)