Internet shoppers beware: Scams, fraud prevalent online

Online shopping is one of the ways consumers are choosing to save money on their holiday gift buying. While the amount that shoppers are choosing to purchase on the Internet is increasing, so is the opportunity for fraud.

The National Retail Federation estimates that 50 percent of Americans will shop for holiday gifts online and 87 percent of retailers were offering a Cyber Monday promotion.

The Utah Division of Consumer Protection reports that Internet fraud is one of the most common complaints during the holiday season.

"The holidays can bring out both big sales and big scams to unsuspecting consumers trying to save a buck online," Francine Giani, division director, said in a news release issued Monday.

During fiscal year 2009, 27 percent of all consumer complaints received by the division were related to Internet fraud, the release stated. Among the chief complaints were failure to deliver the goods, failure to honor a warranty and using false or misleading statements, such as "free" when hidden costs were involved.

The division is offering recommendations for shopping safer online:

Compare prices, as scammers will try to entice potential victims to their Web sites with ridiculously low prices. Also, remember to account for shipping and handling in the cost of online purchases.

Research the seller by confirming the online seller's physical address and phone number in case there are any problems or questions.

Make sure your anti-virus software is up-to-date by installing the latest firewall and anti-virus software to protect your computer against online attacks.

Enter financial information only on secure sites and do not e-mail financial information, like your credit card or checking account number. If you initiate a purchase online, look for indicators that the site is secure. Although no indicator is fool-proof, look for a URL address that includes an "s" after "http" or a lock icon on the browsers status bar.

Do not send cash or wire money for payment. Pay by credit or charge card only.

Maintain a paper trail. Print and save records of all online transactions, including the product description, price, online receipt and e-mails.

Review refund policies and delivery rates. Confirm that products can returned for full refunds if you are not satisfied, and be sure to verify who pays for the cost of shipping a returned item and whether there is a "restocking" fee for returning an item.

e-mail: jlee@desnews.com