Online Fraud

With the growing popularity of online business, it is becoming easier for fraud artists to take your money. Auction ripoffs, purchase scams, SPAM (unsolicited emails) and phishing are all popular methods used by scam artists.

Every time you choose to buy something online you are entering into a contract with the vendor. Any reputable vendor will provide the terms of this contract on its website. Read them and keep a copy for your reference. Insist on the following:

• information detailed and complete enough for you to understand the terms of sale;
• a description of the company's privacy policy and security features;
• an explanation of how the company handles complaints and returns; and
• The delivery date of your product(s).

Be concerned in these cases:

• when the company does not provide the terms and conditions on its site; and
• when the terms and conditions they do provide are so complex and detailed that they discourage you from reading them or are difficult to understand.

Payment System Security

Before providing your credit card number or other financial information, make sure the merchant has a secure transaction system. Most Internet browsers indicate when you are using a secure Internet link. Look for one or both of these clues:

• an icon, often a lock or key at the bottom of the screen. The lock should be in the locked position and the key should be unbroken;
• whether the website address begins with https:// - the "s" indicates that the site is secure.

Know What Information You Are Giving to the Vendor and Why

Never deal with vendors who do not post a privacy policy committing them to protect your personal information. For many Internet vendors, your personal information is as important as the money you pay for a product or service. Make sure you know why vendors are asking for information and what they intend to use it for.

Online Auctions

• Online auctions can be risky. Verify who is selling the item. Know what you're buying, and get a description of the item in writing in case the product does not meet your expectations.
• When you are buying from a private individual, consumer protection laws do not protect you. Read the rules of the auction site: better sites will keep records of customer satisfaction and should also have dispute resolution mechanisms.

Buying Internationally

• Remember, buying internationally involves more risk. Different laws and standards apply, often making it more difficult to get satisfaction if a problem arises.
• When calculating the price, factor in shipping and handling costs, taxes, duty, and currency conversion.
• Check that products meet Canadian safety standards.

If you have a problem with a foreign online vendor, contact the International Consumer Protection and Enforcement Network (ICPEN).

Warning Signs

There are a number of practices that no reputable vendor would use, including these:

• Asking for credit card information before a sale is made and in particular before entry to a site.
• Any attempt to rush you into a decision.
• Unsolicited Spam offers that arrive by email. There may be a few honest people doing this, but the vast majority of unsolicited offers are of little value, and many are outright fraudulent. In addition, unsolicited e-mail can contain computer viruses. The best approach is to delete all unsolicited e-mail offers unread. Do not reply to these messages, even to remove yourself from a mailing list.
• Things that sound too good to be true. They usually are.
• Vendors who try to make you earn your way into doing business with them.
• Sites that seem to take over your computer. Be especially wary of vendors who use "browser traps," which are designed to make it hard for you to get out of a site. A browser trap might, for example, disable the "back" button on your browser or eliminate all your recently visited site options. Other traps will open new windows every time you try to close one. Do not do business with anyone who uses these techniques, and never make a purchase to get out of the trap.

More information:

Contact your provincial or territorial consumer affairs office as some jurisdictions have legislation that may assist consumers who make purchases online.

As of January 2004 the Personal Information Privacy and Electronic Documents Act came into effect. Visit the Office of the Privacy Commissioner of Canada website for information on your rights under the Act.

Spam

Spam refers to unsolicited email, mostly commercial, advertising a product or service that is mass mailed to thousands of email addresses at a time. Spam is often a source of scams, viruses and offensive content. It is important to understand what you can do to protect yourself and others from Spam.

Protect Your Computer

• Shield your computer with anti-spam and anti-virus programs, and other security software.
• Never open attachments unless you are expecting them from someone you trust. If you are in doubt, check with the person who sent you the email first before you open it.
• Disconnect from the Internet and shut down your system once you have completed an Internet session. Spammers seek unprotected home computers with high-speed Internet connections to use as "spam zombies".

Protect your Email Address

• Use separate email addresses for different online activities: create one for trusted persons and business contacts. Create another email address for other activities.
• Choose a complex email address with a combination of letters and numbers, making it more difficult for spammers to randomly discover.
• Never post your email address anywhere on the Internet. Only share your address with people you know and trust.

Protect Yourself

• Always delete spam. Do not even open spam emails.
• Never respond to a spam email. Never click on a remove or unsubscribe link, as this action may only confirm your email address, causing you to receive more spam.

For more information visit: http://www.stopspamhere.ca/

Phishing

Phishing occurs when an email shows up appearing to come from a reliable source with whom you do business, like a bank or online business. Often the message suggests that there is an urgent need for you to provide personal information, such as your login name, passwords or even credit card numbers, often combined with the fake threat that your account will be blocked if you do not comply. In these cases, the website link provided is to a copycat, but counterfeited site.

Be aware that companies will NEVER contact customers in this manner. If you have doubts, call the company to confirm if the request is legitimate. However, be sure to check the phone number in the phone book, as the phone number provided in the email may not be credible. Also, never reply to these messages or connect through the link provided in a spam that you suspect is "phishing." If you are interested in a website, access it directly through a web browser.

Recognize it, report it, stop it.

• An important part of stopping online fraud is not only being able to recognize it, but also reporting it when you have been a victim. To report an incidence of online fraud, please contact:

• Phonebusters at 1-888-495-8501. Phonebusters is the national anti-fraud call centre operated by the Ontario Provincial Police in partnership with the Royal Canadian Mounted Police (RCMP).

• You can also report the incident online at the Report Economic Crime On-line (RECOL) website.