12 Ways to Keep Your Financial Information Safe When Shopping Online

On Cyber Monday alone, nearly 197M take advantage of deals by shopping online. While purchasing products from digital storefronts is now common worldwide, it still has risks. In 2022 alone, over 1M reports of identity theft were filed, with credit card fraud being the most common. With e-commerce a permanent part of our society, it’s crucial to understand how cyberattackers leverage it to steal credit card information and how consumers can protect themselves. Below, we outline essential strategies to thwart cyber criminals and guard your financial data.

The risks of online shopping

Online shopping leaves two key areas vulnerable to attackers: the pathway between their devices and a website. This pathway provides an entry point for cybercriminals to gain access to a consumer’s personal and financial information for fraudulent purchases.

With devices, attackers typically gain access through malicious websites and links. The victim unknowingly downloads malware and other viruses onto their devices by clicking these links. Attackers then have access to their financial information and can instantaneously utilize it.

Fraudulent websites are another gateway for malicious attacks. In the fourth quarter of 2022, 1.35M phishing websites were detected worldwide. These illegitimate sites imitate the original, so the shopper unknowingly gives their credit card information to the scammer instead of the intended business.

Encryption issues are also prevalent for online shoppers, and without it, criminals can intercept financial information when it is being sent from the shopper to an unencrypted website.

How online shoppers can protect their financial information

Despite cybercriminals evolving their efforts into more sophisticated strategies, there are strategies anyone can implement to guard data and stay ahead of attackers.

Below, we outline our proactive recommendations for protecting your financial information this Cyber Monday.

1.   Shop only with retailers you are familiar with and trust

It is best practice to only buy from online stores that are reputable. To avoid bringing up a phishing website, try bookmarking your favorite websites after verifying the website domain is accurate to ensure they’re legitimate.

2.   Be cautious about businesses you have never purchased from

It’s crucial to vet companies before purchasing from them online. Take 10-15 minutes and research this information before you shop their digital storefront:

• Read online reviews from various sources, such as Google, Sitejabber, and Angie’s List
• Verify their rating on the Better Business Bureau
• Confirm the U.S. address and phone number for the business

Remember to maintain a degree of skepticism when reading client testimonies, as reviews can be purchased, and the Better Business Bureau has reported there’s an increase in small business contact information being hijacked to help scammers appear legitimate. In the end, it may be more prudent to pass over a great deal from a new company in the interest of staying safe online.

3.   Be dubious about incredible deals on social media

The Federal Trade Commission (FTC) has reported that Americans have lost $2.7B to social media scams since 2021. The FTC also stated that social media is the origin of more scams than websites, emails, phone calls, etc., in part because of how easy it is for hackers to impersonate the friends of a victim. To protect yourself, avoid clicking on any links you see posted, including those that are sent to you via private messages.

4.   Avoid using public WiFi to shop

Most WiFi networks in coffee shops, libraries, and other public spaces are not private. That means you may be sharing the online space with cyber criminals waiting for shoppers to make a purchase to steal their credit card information. To protect yourself, use only private WiFi networks to shop online.

5.   Utilize a virtual private network (VPN)

If for some reason you do decide to shop on a public WiFi network, guard your financial data by using a VPN. Known as a virtual private network, it creates an encrypted tunnel between your device and the website where you are shopping. VPNs are vital for preventing online attackers from spying on your transactions and stealing your credit card information.

6.   Create strong passwords

Change your passwords often and make them complex. At a minimum, your password should:

• Be at least 12 characters
• Avoid repeating letters, symbols, or numbers
• Not include common words or something the hacker can guess, such as your child’s name
• Include lower and uppercase letters, numbers, and symbols

For added protection, make sure that you do not write your passwords down or reuse them across sites.

7.   Shop only on secure sites

How can you know whether the site you are visiting is secure? First, look at the browser bar, where you should see a lock icon. That will indicate the site is protected. Second, the website’s URL should begin with “https,” which confirms the use of SSL encryption. If you are on a site whose URL starts with “http,” you should leave immediately, as this indicates it is not secure.

8.   Beware of email scams

While it is possible that legitimate companies will email you with special, can’t-miss holiday deals or updates on your orders, exercise a degree of caution. A few rules to follow:

• If you receive an email about a shipment or delivery, one you did not request, do not respond to it or click on any links. Instead, call your credit card company or bank to first confirm that a purchase was actually made.
• If the deal appears to be too good to be true, it is.
• Do not open any attachments, as they can infect your computer with malware and ransomware.

9.   Shop only with your credit card, not your debit card

While a debit card can be used as a credit card, there is a significant difference between the two: the former gives immediate access to your banking account while the latter taps into a line of credit.

This ultimately makes it safer for you to shop online with a credit card, not a debit card. Be sure to ask your merchant about your liability for fraud, as many credit card companies will not hold you accountable.

10.   Consider shopping with a virtual credit card to have more online security

Something relatively new to consumers is virtual credit cards, which is a temporary card number linked to your credit card. When you check out and complete your purchase, you simply type it in, which prevents your real credit card number from falling into the hands of cyberattackers. Some can be used only once, so ask your merchant for details.

11.   Monitor your credit card and bank account statements for fraud

Awareness will always be your best line of defense. Even if you pay off your credit card each month, review all statements and immediately notify your merchant of any discrepancies. In comparison, it is smart to review your bank statement at least once a week. Some banks and credit card merchants will send you alerts of new activity. Always check these notifications quickly and be proactive about resolving any disputes.

12.   Keep track of your online orders until you receive them

After getting the tracking number from the vendor, monitor your purchase daily until it arrives. If it doesn’t or if you cannot get a tracking number, your credit card merchant may be able to help you dispute the charge.

As advocates of data security and IT health, we hope these cyber tips will help keep your information secure while buying items online. We hope that the tips we have shared with you, gleaned from our years of experience with protecting our clients from cyber attackers, will keep you safe and your credit card information exactly where it should be: in your hands, not those of cyber criminals.