How to Stay Safe When Shopping Online This Holiday Season
If you’re like the majority of consumers, you’ll be doing the bulk of your holiday shopping online. A survey by the National Retail Federation found that online is the top destination for gift buying this year.
Unfortunately, online shopping also is one of the top sources of fraud complaints the Federal Trade Commission receives each year. Bad actors prey on consumers, especially around the holidays by taking advantage of the increase in online shopping and eagerness to find deals.
If you don’t want your holidays spoiled by fraud or identity theft, take these steps to stay safe while shopping online.
Don’t rush
You might feel like you have to act quickly to avoid losing out on limited-time holiday deals. But rushing to make purchases puts you at risk of both buyer’s remorse and fraud—because both retailers and scammers create a sense of urgency around holiday shopping.
Consumer savings expert Andrea Woroch recommends adopting the “slow shopping” trend that’s been made popular on TikTok. “‘Slow shopping’ suggests you spend time thinking through each potential purchase rather than jumping on impulse even if a deal seems too good to pass up,” she says. Not only does this allow you to be mindful about what you’re buying, but also pausing to research both the deal and retailer can help you catch warning signs of a scam.
Stick to websites you know and trust
Shopping online with well-known retailers is one of the best ways to avoid scams. Be aware, though, that scammers create websites that look just like legitimate retailers’ sites.
“Double check the url, especially during the holiday season,” says Adam Levin, co-host of What the Hack? with Adam Levin. Make sure the name of the retailer is spelled correctly, that there aren’t any additional words in the url, such as “discount” or “Black Friday,” and that it doesn’t have a .shop, .store or .vip domain—which scammers have been using when creating fake sites this holiday shopping season. Deals that seem too good to be true are another sign of a fake online store.
Be cautious when shopping on unfamiliar sites
Well-known retailers such as Amazon, Target and Walmart typically have the best holiday discounts. “But there are so many companies out there, and you might want to discover a new brand or support a small business,” says Trae Bodge, smart shopping expert at TrueTrae on MSN and Truetrae.com. “But it’s important to proceed with caution when shopping with an unfamiliar brand.”
To determine if an online shop is safe, search the name of the company along with the word “reviews,” “scam” or “complaint” to see if consumers have had bad experiences with it. Be aware that reviews that are overly positive or have a strange-sounding tone could be fake, Bodge says. Also, steer clear of sites with typos, grammatical errors and poor-quality images.
Check refund and exchange policies
Before making purchases, find retailers’ refund policies on their sites to ensure you can get your money back if you’re unhappy with a purchase. If a retailer doesn’t provide a refund or exchange policy on its site, shop elsewhere.
“One of the things I always do when shopping with a new brand is to familiarize myself with their return policy,” Bodge says. “A couple of years ago, I didn’t follow my own advice for vetting a brand, and I placed an order for my daughter, only to find out that the company not only made shoddy products, but that I was expected to pay the shipping fee back to China in order to make a return. Lesson learned.”
Don’t click on ads or links for deals
Online ads, social media posts and links in unsolicited emails and text messages could take you to untrustworthy retail sites or install malware on your device. Rather than click on those offers, go directly to the website of the retailer to see if it’s actually having a sale.
Also, avoid using broad search terms, such as “cheapest TVs,” to find deals online. The sponsored results that appear at the top of your search results could link to questionable sites. A better way to locate legitimate deals is to visit Flipp.com or use the Flipp app to browse digital sales flyers. You also can set sale alerts using Keepa or Karma so you don’t miss price drops on items you want, Woroch says.
Use a credit card for online purchases
Don’t pay for online purchases with a debit card. If your card is compromised, thieves will have direct access to your bank account. Instead, use credit cards, which have more protections against fraudulent transactions and for purchases that merchants aren’t willing to refund.
For added protection, Levin recommends locking your credit card when not actively using it to prevent fraudulent transactions. Card issuers typically offer this option within their mobile apps.
Monitor accounts for unauthorized charges
Taking the steps above will help you stay safe while shopping online. However, there’s still a chance that scammers could get your payment information. That’s why it’s important to keep a constant eye on your bank and credit card accounts.
Signing up for transaction alerts can keep you aware of activity on your accounts. However, a more comprehensive solution such as Carefull can provide 24/7 account, credit and identity monitoring plus $1 million in identity theft insurance. Carefull looks for activity that traditional transaction alerts can miss, keeping you safe from the latest scams that are circulating. You can try Carefull for free for 30 days.
[ Keep Reading: The Top 10 Holiday Scams of 2024 ]
3 Steps to Safer Money,
Try it Free for 30 Days
Step 1
Start your free,
no-risk trial
Step 2
Connect the accounts and cards you want protected
Step 3
Stay alerted to any
unusual activity