Avoiding fraud and scams online is easy if you remember
a few simple tips.

Shopping on the Internet is becoming safer every day and consumers are spending more and more money there. Many people still have security concerns, though. In general, online purchases are secure, but there are some peculiarities which it pays to be aware of. Here are some quick tips to help you avoid getting scammed:

Purchase from merchants whom you trust offline
Merchants with physical stores and good reputations are likely to act the part in cyberspace. Many large retailers like JC Penney, Best Buy, and Target have expanded into the online market, giving customers the confidence that the company will deliver the goods they promise.

Use a credit card
It seems counter-intuitive to use a credit card online when people worry about having their card numbers stolen. However, most major credit cards offer fraud protection and ways in which charges may be disputed or cancelled. Some people even have a credit card which they use only for online purchases to make tracking transactions even easier. Having these safeguards makes purchasing online much safer than using other methods of payment, such as money orders or cash, which can be impossible to track.

COMMON SENSE IS THE BEST WEAPON AGAINST FRAUD

Look for security
Many web browsers have a lock or key icon in a bottom corner of the screen which indicates when a transaction is secure (an unbroken key or a closed lock indicates security). Make sure this symbol is activated before giving out any sensitive information, such as credit card numbers.

Guard your personal information
An online merchant will need your address and credit card number to ship your merchandise to you, but you should keep all other information secret. If a company asks for your social security number, driver’s license information or bank account, you should cancel the transaction immediately and inform the Better Business Bureau -- (603) 224-1991 in New Hampshire, or online at http://www.bbb.org/. Also, be careful of requests for information from companies, even if they seem legitimate. If you receive an e-mail saying, "please verify your password/credit card number for our records," contact the company to confirm it was sent by them. Reputable companies keep all this information on file and should not need customers to re-enter it.

Set the record straight
When purchasing any item, keep a record of
e-mails to and from the seller, print out online receipts and keep credit card statements. This way, if something goes wrong, you have a record of the transaction to back up your claims.

Learn from others
Several web sites allow users to check whether a particular merchant is reputable or not. Those who have had experience with merchants in the past may post ratings and reviews to help other users decide if they want to buy from the company or not. These sites include: www.bizrate.com, www.resellerratings.com, www.epinions.com, shopper.cnet.com, www.mysimon.com, www.dealtime.com, www.nextag.com, and www.pricegrabber.com.

Read the fine print
If you're concerned about a company's credibility, check its web site for policies on merchandise returns, privacy, etc… If the company does not maintain such lists, or does not publish them, it might be a sign that they are disreputable.

Spam stinks
Don't ever buy an item that you learn about via bulk email (spam). Your chances of receiving the item *at all* are only 45%. And the chance of your being happy with the transaction is less than 5%. In other words, 'If it's spam, it's scam.' (Quoted from the web site www.scambusters.org).

Follow your instincts
The old adage is still correct: if a deal seems too good to be true, it probably is. If a seller seems shady, wants to get rid of merchandise quickly, wants you to pay with cash, or does anything else which makes you suspicious, there's probably something amiss. If you have any questions, ask the seller for their address and phone number and contact the Better Business Bureau to see if they're legitimate. If they won't give this information, it's very likely that they're disreputable and you should end the transaction immediately.

If you’ve already experienced fraud online and you wish to report it, contact either the Federal Trade Commission: (877) FTC-HELP (877-382-4357 or www.ftc.gov) or Internet Fraud Watch (www.fraud.org). Internet Fraud Watch also has a number of resources on identifying Internet and telemarketing fraud before it happens.