Advice
Online shopping is a modern marvel—convenient, efficient, and sometimes a real money-saver. But unfortunately, the same things that make online shopping so easy also make it a target for identity theft. For people who might not be as familiar with online scams, it’s especially important to know the dangers and how to steer clear of them. So let’s talk about the common tricks identity thieves use when you’re shopping online, and what you can do to stay safe.
What is Online Shopping ID Theft?
Identity theft happens when someone steals personal information like your name, address, or credit card number to use for themselves. Thieves can drain your bank account, run up credit card charges, and even use your details to open new accounts in your name. With online shopping, this theft can happen all too quickly—often before you even realize something’s wrong.
It doesn’t take much for scammers to create realistic-looking online stores or convincing fake emails. They may target anyone who seems new to online shopping or unaware of these scams. But with a few precautions, you can reduce your risks and protect your identity when you’re shopping online.
Common Online Shopping ID Theft Scams
Let’s look at the ways identity thieves operate so you can spot a scam before it happens.
Fake Online Stores
Some scammers set up fake online stores that look just like the real thing—complete with customer service lines, “customer” reviews, and big sales that seem hard to resist. But once you place an order, they disappear with your money or send you a low-quality knockoff. Worse yet, they can save your credit card information and use it later.
How can you spot a fake store? One trick is to search the store’s name along with “scam” or “reviews.” If others have been tricked, they often post online to warn others.
Phishing Emails and Messages
Phishing is when scammers send fake emails pretending to be from legitimate businesses. The goal is to get you to click a link that leads to a fake website, where they can steal your login details, payment information, or both. For example, you might get an email saying there’s a problem with your recent order or a message about a “special discount” for you to claim. In reality, it’s just a scammer trying to get your details.
Avoid clicking any links in these emails, even if the message looks convincing. Instead, go directly to the company’s website by typing it into your browser. Legitimate businesses rarely ask for sensitive information by email.
Social Media Ads and Fake Customer Service
Social media platforms are popular places for scammers to target shoppers, often by posting fake ads that look like they’re from well-known brands. Clicking these ads takes you to a scam site, where the thief hopes you’ll enter your personal information.
Another trick? Fake customer service. Scammers pose as company representatives, often contacting you to “resolve an issue” or “confirm” your order. If they ask for any private information, don’t fall for it. Real customer service agents won’t need your personal information to help you with a basic question.
How to Recognize the Red Flags of a Scam
Staying aware of some common red flags can help you avoid many scams:
- Prices That Are Too Low: Scammers know we’re drawn to big discounts, but deals that seem too good to be true usually are.
- Missing Contact Information: Legitimate businesses typically list their contact info. If you can’t find an email or phone number—or if the site has typos and unprofessional language—it may be a scam.
- Look for the “Lock” Symbol: In your browser’s address bar, a small padlock symbol means the site scrambles (or “encrypts”) your information to keep it safe. You’ll also see “https” at the beginning of the website address, instead of just “http.” Without this lock, your data could be at risk.
- Suspicious Web Addresses: Some scam sites use web addresses that look almost real but have slight changes. Look closely at the address—scam sites might use “amaz0n.com” instead of “amazon.com” or “best-buyy.com” instead of “bestbuy.com.”
Tips for Safer Online Shopping
Knowing the red flags is a start, but these tips can help keep your information even safer:
Use Strong Passwords and a Password Manager
It’s tempting to use the same password across sites, but it’s much safer to use a unique one for each account. Password managers like LastPass, Dashlane, and 1Password can help you create and store secure passwords so you only have to remember one. These tools are safe to use and provide strong, randomly generated passwords that hackers have a hard time cracking.
Use Digital Wallets for Added Security
Digital wallets, like Apple Pay, Google Pay, and Samsung Pay, offer a safer alternative to using your credit or debit card directly when shopping online. These apps store your card information securely on your phone and allow you to pay at checkout without entering card details, making them a safer choice against theft.
One of the biggest advantages of digital wallets is the way they protect your card information. Instead of transmitting your actual card number during transactions, digital wallets use a unique, one-time “token” for each purchase. If a thief intercepts this token, it’s useless because it doesn’t contain your actual card data and can’t be reused. Digital wallets also require a password, fingerprint, or face recognition to complete a transaction, adding another layer of security.
By using a digital wallet online, you’re adding more protection against identity theft, as your card information is never directly exposed during transactions. Plus, it’s quick and easy to use, making it a smart choice for secure, convenient online shopping.
Avoid Shopping on Public Wi-Fi
Shopping on public Wi-Fi—like in coffee shops or hotels—can be risky because scammers can sometimes intercept data on these networks. If you’re not on a private Wi-Fi network, stick to browsing and save the shopping for later.
Monitor Your Bank and Credit Card Statements
Check your bank and credit card statements regularly for any transactions you don’t recognize. The faster you spot something unusual, the faster you can report it and prevent further damage. Many banks also offer alerts that notify you of purchases made on your account, which can give you added peace of mind.
What to Do if You Suspect ID Theft
If you think your information has been stolen, there are steps you can take right away to protect yourself:
- Contact Your Bank or Credit Card Company: They can freeze your account, cancel any unauthorized charges, and send you a new card with a fresh number. If you’re a 1st Source client, you can reach us here.
- Place a Fraud Alert on Your Credit Report: This tells lenders to verify your identity before opening any new accounts in your name. It’s free and only takes a few minutes to set up.
- Report the Scam to the FTC: The Federal Trade Commission has resources to help you recover from identity theft, and reporting the scam also helps prevent others from being targeted.
- Change Your Passwords: Start with any online accounts you think may be compromised, then work your way through other accounts to make sure all your information is secure.
Resources for Staying Safe
If you’re looking for more information, many banks and credit unions have online safety resources or even identity theft protection services. You can also check out the FTC’s website, which has information on staying safe online and lets you report scams directly. And don’t forget—sharing this information with friends and family can help protect them from scams too.
Enjoy Safe Online Shopping
The world of online shopping is exciting and full of great finds, but it’s always wise to shop with a little extra caution. Take your time when buying from new sites, double-check unfamiliar stores, and don’t let “too-good-to-be-true” prices sway you. With these precautions, you can shop online safely and enjoy the experience without worrying about identity theft.