Global Money Week serves as a reminder of the importance of financial literacy and responsible money management. In an increasingly digital world, online shopping has become the norm, it can save your time and effort while giving you a wide variety of products that you can choose from.
Report by Statista shows that over 80 percent of the UK population makes e-commerce purchases, or to put it in other words, over four in five UK consumers are digital buyers. In the UK, Black Friday emerged as the most significant online shopping day of 2023 so far, with consumers spending 1.04 billion pounds online. Clothes and footwear were the most popular categories to buy using website like Amazon, eBay, Etsy, and Argos.
Unfortunately, while online shopping getting more popular, there are also some concerns and threat. There were 1.4m fraud cases with £580 million lost in the first six months of 2023, according to the latest figures by UK Finance. Online shopping scams are favoured by fraudsters because they allow them to remain anonymous while exploiting multiple victims simultaneously. Therefore, it’s crucial to understand how to protect your finances while making purchases on the internet.
As we celebrate Global Money Week under the theme “Protect your money, secure your future,” let’s explore some essential online shopping tips to safeguard your financial well-being.
What you can do to protect yourself and your money
1. Prioritize Secure Websites:
When shopping online, always prioritize websites that offer a secure browsing experience. If you don’t recognise the retailer, it is important to double-check the website before making any purchases.
- Look for HTTPS in the website URL. The ‘S’ stands for secure, indicating a secure connection.
- It has no spelling mistakes or strange characters.
- Additionally, reputable online retailers often display trust seals or badges from third-party security firms, assuring customers of the safety of their transactions.
2. Strengthen Passwords and Enable Two-Factor Authentication (2FA):
Protect your accounts by using strong, unique passwords for each online retailer. Combine uppercase and lowercase letters, numbers, and symbols to create complex passwords that are difficult to guess.
Furthermore, enable two-factor authentication whenever possible, adding an extra layer of security by requiring a verification code in addition to your password.
3. Beware of Phishing Scams:
Phishing scams are prevalent in the online shopping sphere. Be wary of emails, messages, or pop-up ads requesting personal or financial information. Legitimate retailers will never ask for sensitive details via email.
Usually, fraudsters will send fake emails claiming to be well-known companies, using similar email addresses, and stolen logo to appear genuine. The best way to avoid this is by contacting the company or retailers directly, but do not use the contact information that appear on the email received. If you receive suspicious communications, avoid clicking on any links and report them immediately.
4. Use Trusted Payment Methods:
Opt for secure payment methods such as credit cards or reputable third-party payment services like PayPal, Apple Pay or Google Pay. These options offer additional layers of protection, including fraud monitoring and buyer protection policies.
Using credit cards while shopping online also means that if your payment details are stolen, your primary bank account won’t be directly affected. Avoid using debit cards or direct bank transfers, as they may lack the same level of liability protection.
5. Research Before Purchasing:
Before making a purchase, research the seller and read reviews from other customers. Look for red flags such as negative feedback, complaints about counterfeit products, or unreliable shipping practices. Trusted review platforms and consumer forums can provide valuable insights into the credibility of online retailers.
Some emails or text messages advertising fantastic offers may lead to fake websites through embedded links. If you’re unsure of the legitimacy, avoid using the link and opt to either:
- Go to your browser’s address bar and type directly the website address.
- Search for the website and proceed by selecting it from the search results.
6. Utilize Virtual Private Networks (VPNs):
Protect your online privacy and security by always using a Virtual Private Network (VPN) when shopping online, especially when using public Wi-Fi networks. A VPN encrypts your internet connection, preventing hackers from intercepting your data and compromising your sensitive information. Additionally, utilizing a VPN can help you avoid the excessive tracking employed by certain shopping websites, which might lead to price discrimination on specific products or services.
7. Monitor Your Accounts Regularly:
Stay vigilant by monitoring your bank and credit card statements regularly for any unauthorized transactions. Report any suspicious activity to your financial institution immediately to prevent further unauthorized charges and mitigate potential financial losses.
8. Secure Your Devices:
Ensure that your devices, including smartphones, tablets, and computers, are equipped with up-to-date antivirus software and security patches. Regularly scan for malware and other malicious programs that could compromise your online shopping experience and jeopardize your financial information.
9. Be Cautious of Unrealistic Deals:
Exercise caution when encountering deals that seem too good to be true, especially on unfamiliar websites or social media platforms. Scammers often lure unsuspecting shoppers with heavily discounted prices on counterfeit or non-existent products. Trust your instincts and verify the legitimacy of the offer before making a purchase.
10. Educate Yourself Continuously:
Stay informed about the latest cybersecurity threats and online shopping best practices to safeguard your financial well-being. Take advantage of resources provided by reputable financial institutions, government agencies, and consumer advocacy groups to enhance your knowledge and awareness of online security risks.
Conclusion:
As we celebrate Global Money Week and reflect on the importance of protecting our finances for a secure future, let’s embrace these online shopping tips to safeguard our financial well-being. By prioritizing secure websites, using strong passwords, staying vigilant against phishing scams, and employing trusted payment methods, we can shop online with confidence and peace of mind. Remember, an informed and proactive approach to online shopping is key to protecting your money and securing your financial future.
