If you shop online, you want to make sure that you are using a credit card instead of a debit card to protect your bank account from online attacks and scammers.
The advantage your credit card has over your debit card is you only have a $50 loss if it is stolen and most times your insurance or credit card company will cover it. With a debt card the funds come directly out of your bank account. You might have trouble disputing the charges or recoverying the money if you are unhappy with the service. If you card is stolen, you could have your bank account drained before you know it.
1. Use Familiar Websites
Start at a trusted site rather than shopping with a search engine. Search results can be rigged to lead you astray, especially when you drift past the first few pages of links. If you know the site, chances are it’s less likely to be a rip off. We all know Amazon.com and that it carries everything under the sun; likewise, just about every major retail outlet has an online store, from Target to Best Buy to Home Depot. Beware of misspellings or sites using a different top-level domain (.net instead of .com, for example)—those are the oldest tricks in the book. Yes, the sales on these sites might look enticing, but that’s how they trick you into giving up your info.
2. Look for the Lock
Never ever, ever buy anything online using your credit card from a site that doesn’t have SSL (secure sockets layer) encryption installed—at the very least. You’ll know if the site has SSL because the URL for the site will start with HTTPS:// (instead of just HTTP://). An icon of a locked padlock will appear, typically in the status bar at the bottom of your web browser, or right next to the URL in the address bar. It depends on your browser.
Never, ever give anyone your credit card over email. Ever.
3. Don’t Tell All
No online shopping store needs your social security number or your birthday to do business. However, if crooks get them, combined with your credit card number for purchases, they can do a lot of damage. The more they know, the easier it is to steal your identity. When possible, default to giving up the least amount of information.
4. Check Statements
Don’t wait for your bill to come at the end of the month. Go online regularly during the holiday season and look at electronic statements for your credit card, debit card, and checking accounts. Make sure you don’t see any fraudulent charges, even originating from sites like PayPal. (After all, there’s more than one way to get to your money.)
If you do see something wrong, pick up the phone to address the matter quickly. In the case of credit cards, pay the bill only once you know all your charges are accurate. You have 30 days to notify the bank or card issuer of problems, however; after that, you might be liable for the charges anyway.
5. Inoculate Your PC
Swindlers don’t just sit around waiting for you to give them data; sometimes they give you a little something extra to help things along. You need to protect against malware with regular updates to your anti-virus program. PCMag recommends Webroot SecureAnywhere Antivirus (4.5 stars, Editors’ Choice, $39.95 direct), which has extras to help fight ID theft, or at the very least the free Ad-Aware Free Internet Security 9.0 (4.5 stars, Editors’ Choice).
6. Use Strong Passwords
We like to beat this dead horse about making sure to utilize uncrackable passwords, but it’s never more important than when banking and shopping online. Our tips for creating a unique password can come in handy during a time of year when shopping around probably means creating new accounts on all sorts of e-commerce sites.
7. Think Mobile
The National Retail Federation says that 5.7 percent of adults will use their mobile devices to do comparison shopping before making a purchase. (And 32.1 percent will comparison shop online with a computer, as well.) There’s no real need to be any more nervous about shopping on a mobile device than online. The trick is to use apps provided directly by the retailers, like Amazon, Target, etc. Use the apps to find what you want and then make the purchase directly, without going to the store or the website. (For more complete information, be sure to also read our tips for shopping safely on a mobile device.)
8. Avoid Public Terminals
Hopefully we don’t have to tell you it’s a bad idea to use a public computer to make purchases, but we still will. If you do, just remember to log out every time you use a public terminal, even if you were just checking email.
What about using your own laptop to shop while you’re out? It’s one thing to hand over a credit card to get swiped at the checkout, but when you must enter the number and expiration date on a website while sitting in a public cafe, you’re giving an over-the-shoulder snooper plenty of time to see the goods. At the very least, think like a gangster: Sit in the back, facing the door.