Books, music, movies, computers, software, concert tickets, clothing, furniture – today you can buy just about anything online. But shopping online is not risk-free. Protect yourself with some simple tips the next time you get bit by the online shopping bug.
Buyer beware – “When you buy something online, you can’t touch or see the product up close, so quality could be a problem,” says Chartered Accountant David Teeger of Teeger Schiller Inc. in Toronto. “Because you don’t leave the store with the item, you also don’t know when it will arrive and whether it will arrive undamaged.” Other risks include items described as “new” or “in good condition”, because the seller’s interpretation of those terms might differ from yours. Try to buy from well-known, reliable companies and ask friends and relatives about their online shopping experiences. If you are shopping on eBay or similar sites, check the sellers’ ratings.
Watch out for fraud and online scams – “If you don’t know the online seller, you might never see the item once you have paid for it,” cautions Teeger. “As for most online scams, they usually offer the buyer something that is too good to be true. If that’s how you feel, you’re probably right.” Some common signs of an online scam include an
e-mail addressed to your e-mail address instead of your name, or an e-mail that directs you to a website that asks you to divulge confidential information. “It’s usually a good idea to exert extreme caution before you click on a website link from within your e-mail,” Teeger says. “If you don’t know the sender, or the link doesn’t seem like it belongs to whom it claims to be, don’t click.”
Protect your privacy – “A possible risk associated with buying online is exposing personal information, such as your name, address, and credit card information,” says Chartered Accountant Rob Witkowski, Audit Manager with a major financial institution in Toronto. “An unscrupulous online seller could potentially use this information to try and commit credit card fraud or identity theft.” While online sellers’ privacy statements can sometimes be long and difficult to understand, take the time to learn how the company will use your personal information. “Make sure your personal information isn’t going to be sold to another company,” advises Witkowski. “Find out if the website employs cookies that may potentially track your movements on the Internet.”
Check out the check-out process – “Make sure that the website over which you are transmitting confidential information is secure, and that your information transfer is not visible to a hacker,” says Teeger. “All of the major website browsers have an icon, such as a closed lock, somewhere on the screen indicating that that the transmission is secure. If you don’t see that, assume it’s not a secure transmission.” Another way to minimize your risk is to dedicate one, low-limit credit card to online purchases. “It’s easy to confirm that there has been no fraud on the card, since there are a small number of transactions,” explains Teeger. “Because the credit limit is low, so is your exposure.” Teeger also recommends using an online payment processing service, such as PayPal, so that you don’t need to supply your credit card information to the online seller.
Be aware of shipping charges and other fees – “Some online sellers are not clear about shipping or administrative fees,” cautions Witkowski. “Make sure you know what you are going to pay for shipping and handling, and don’t forget additional charges associated with cross-border purchases.”
Check the return policy – “Returning an item bought online can be a real chore, and there is always the question of whether you will be reimbursed for the shipping charges, both to receive the item and to send it back,” says Teeger.
Look for sites that provide good customer service – “Good online shopping sites provide many opportunities to review your purchase, cancel the transaction or complete the purchase,” says Witkowski. “They also have a help desk you can phone or e-mail for assistance.”
Brought to you by the Institute of Chartered Accountants of Ontario
