One thing we’ve heard a lot about in 2011 is the rise of credit card fraud. Much of it is due to online scams and, while credit card companies are constantly looking for better ways of tightening security, the scammers always seem to be one step ahead.

Taking responsibility for our own security means following some simple guidelines for shopping online; then maybe we can make sure that 2012 is not a vintage year for the scammers. Below are some suggestions for how to do that.

Protect Your Details

It sounds all too obvious but take basic precautions about protecting your credit card and your details:

• Don’t enter your details into any site you’re not sure about

• Look for a secure “padlock” sign in the lower right of your browser and “https” in the address bar – before entering credit card details.

• Never send money or give your details to somebody you don’t know or trust. No company (not even banks) will ask for your personal details by email.

• Keep your PIN separate from your card – and PINS should not be 1234 or something easy to guess.

• Be wary of deals that look too good to be true – they may be scams

• Investigate companies you want to buy from online. Use the ASIC or ACCC websites for more information on a business owner or business in general. They also have good information on common scams.

• Check that the company has a physical address and other contact details as well as information on their privacy policy and dispute resolution.

• Don’t click on links or call any numbers in emails from people you don’t know. Set up spam filters on your mail account to help identify potential spam.

• Try to deal with Australian companies –any problems will be easier to solve.

• Check your bank accounts regularly to check that all transactions are legitimate

Popular Scams To Be On the Lookout for…

There are some common scams that are tried again and again; noticing the warning signs for these is advisable:

• Spam emails. Most people know about these – like the Nigerian scam. They offer free goods, prizes or instant wealth if you just follow a link or send money or your bank details.
• Spyware and key loggers. This malicious software spies on your computer or captures your keystrokes so that scammers can steal your online banking passwords or other personal info.
• Upfront payment scams. This is where you have to send money to receive a product or a reward for signing up; in reality you may receive nothing.
• Online Auctions – these can be rigged or you may be contacted outside the auction site to buy the same product – it’s always best to not be tempted.
• Domain name renewals – fake renewal notices for your domain name or one which is very similar can be sent, along with an invoice resembling your real host’s letterhead.

Hopefully the above gives you a good overview of what to be aware of when using your credit card for online shopping. The scammers are becoming more sophisticated and the next frontier may be mobile banking, but we have covered most of the traditional ground you need to know about.