The Monday following Thanksgiving is traditionally the busiest day of the year for e-commerce, and the 2005 holiday shopping season is expected to set new records for online commerce. But just as mall visitors should protect their credit cards, wallets and car keys from would-be thieves, online shoppers should beware of hazards lurking in cyberspace.
"Criminals prowl stores and neighborhoods, but they also surf the Web," said Candysse Miller, executive director of the Insurance Information Network of California. "Being aware of cyber crimes is the first step in preventing them."
Online retail sales continue to claim a greater share of the holiday market and are expected to reach $26.2 billion for the fourth quarter of 2005, up nearly 22 percent from the same period in 2004, according to online market research firm e-Marketer.
To minimize problems from online shopping:
- Use a credit card. The Fair Credit Billing Act protects credit cards. You will only be held liable for the first $50 for unauthorized purchases
- Shop on known Web sites. Staying with companies with which you are most familiar will lessen the anxiety of dealing with an unknown retailer.
- Check for the "lock." Before entering your personal data on a Web site, check for the "lock" icon on your browser's window. This feature means that your data will be encrypted during transmission and secure from theft.
- Print your receipt. Keep it in a safe place until your order arrives. Verify the purchase amount on your receipt with your credit card bill and also be certain what you order is what you receive.
For added peace of mind, identity theft insurance is available. These policies can reimburse expenses incurred while reestablishing your credit. Policy premiums typically range between $25 and $50 for $15,000-to-$25,000 worth of coverage either as part of a homeowner insurance policy or as a separate "stand alone" policy.
For more information on identity theft insurance and online shopping safety, please visit the IINC Web site at www.iinc.org. IINC is a non-profit, non-lobbying insurance trade association dedicated to helping consumers understand insurance and safety issues, and has spokespeople in Northern and Southern California available to discuss this and other insurance topics.
