Online shopping: Play it safe

The Internet today has become a personal assistant, postman, banker, librarian and retailer all rolled into one. There seems to be no limit to what you can do over it -- buy stuff, pay your bills, check your bank statements, transfer money, trade in shares�

While the convenience is enormous, online transactions involve some risks, even though Internet security technologies have greatly improved over the years. The risks include credit card fraud, online banking fraud, identity theft and shopping fraud.

The only way you can minimise the risks of shopping or banking online is by staying vigilant and cautious.

1. Check the reputation of the online seller

Remember, anyone can set up a site overnight and there's no shortage of fly-by-night operators waiting to take your money and scoot. It's always a good idea to buy from reputed shopping sites -- ones that you have heard of through the media, friends and trusted acquaintances.

At the very least, look for a physical address and telephone number on a Web site. Call them up to find out more if you aren't feeling sure. For example, on rediff.com, if you get onto the Web site, you will find a link at the bottom called Investor Information. If you click on it, you will find the address and phone numbers of head offices in the US and India.

Most auction sites have a rating system. It is always a good idea to check a seller's rating and the reviews the seller has received from other buyers before buying a product. To get an idea of how this works, go onto Rediff Auctions and click on any of the products listed there.

2. Read the small print

All reputed online shopping sites have information about their privacy and returns policy. The company should make it clear what it intends to do with the private information that you provide.

Also ensure the site allows you to return the product if you aren't satisfied with it or if it is defective.

3. Buy only from secure sites

The most common mode of online payment is the credit card. Pay through your credit card only on a secure site. A secure site encrypts or scrambles your personal information during transit across the Web to prevent unscrupulous persons from accessing it and using it fraudulently.

One way of identifying a secure site is to look for a small padlock icon that appears on the bottom right-hand corner. Else, Take a look at the address bar: a secure site starts with 'https://' (with an additional 's', instead of the usual 'http://').

There are third-party companies -- like VeriSign for example -- that provide certificates saying a site is secure. Look for them. Avoid using your debit card or your online banking account to make payments over the Web because such payments are irreversible. Stick to your credit card.