News You Can Use

Shopping online: Safeguard yourself from fraud

University Relation
News Bureau (662) 325-3442
Contact: Dustin Barnes
Feb. 23, 2004

STARKVILLE, Miss.--Horror stories about identity theft and credit card fraud frighten many online shoppers, but an expert says e-shopping can be safe and efficient.

Start with some common sense and a few safety controls, advises Merrill Warkentin of Mississippi State University. “With the right precautions, online shopping can be beneficial especially to residents of smaller towns,” the professor of management and information systems says.

In addition to offering a wide variety of products without geographic limitations, online retailers often offer reduced prices. “Well established e-stores, in particular, have more extensive resources and experiences in preventing e-fraud and can respond quickly even if their systems are occasionally compromised,” Warkentin observes.

To guard against fraud, he suggests some basic precautions:

—If new to online shopping, ask a more experienced friend to show you the ropes.

—Never use a debit card or bank routing number for purchases; there is no legal protection if a thief empties your bank account.

—Credit cards are recommended for purchases, since most companies hold the cardholder liable only for the first $50.

—Research and locate your own online retailers; unknown publications may not be legitimate.

—Educate yourself by visiting such sites as bizrate.com and epinions.com to find out details about e-stores’ policies and procedures.

—When ordering, provide the minimum information necessary—credit card number and shipping address—but only when you know the store uses an encrypted page.

—Look for sign of a store’s trustworthiness, such as privacy policies, trust mark seals or return policies.

—Never forget: If the offer seems too good to be true, it probably is.