SALT LAKE CITY (ABC 4 News) - Francine Giani, executive director of the Utah Department of Commerce, announced last Monday that the Utah Division of Consumer Protection was releasing its annual list of shopping tips ahead of Black Friday and Cyber Monday events to keep shoppers safe when hunting for this year's big deals. She joined Don Hudson live in Good Morning Utah's studio Monday to talk about how you can protect yourself from being scammed.
"Online shopping continues to grow in popularity for consumers and fraudsters, making it an attractive target every year," said Giani. "In the race to get the best deal, make sure you aren't ignoring safety measures. Always buy from a secure website, make sure you are using a reputable merchant and that you understand the terms of sale before you type in your account information."
According to the National Retail Federation (NRF), the average consumer plans to spend 36 percent of holiday shopping online, a 33 percent increase over 2010 retail forecasts. The NRF projected 2011 holiday retail sales to hit around $466 billion, a 2.8 percent increase over last year's numbers. The survey also found that 50 percent of smartphone owners plan to use their mobile devices as tools for holiday shopping. Also, one out of five mobile users say they will complete their transactions with their phone.
"As more consumers turn to their tablets and smartphones for shopping information, cyber thieves are also developing their own apps to steal your money," said Traci Gundersen, director of the Division of Consumer Protection. "Try to use apps from trusted sources and don't leave your device unattended in a public place."
Internet fraud continues to be the number one consumer complaint to the Utah Division of Consumer Protection related to the following; failure to deliver the goods, failure to honor a warranty, and using false or misleading statements, such as "free" when hidden costs were involved.
Tips for shopping smart and safe online:
- 1.) Compare prices. Similar items typically fall into a general price range. Scammers will try to entice victims to their websites with ridiculously low prices. Also, remember to account for shipping and handling in the cost of online purchases.
- 2.) Research the seller. Anyone can set up shop online. Confirm the online seller's physical address and phone number in case you have any problems or questions.
- 3.) Keep your anti-virus software up-to-date. Make sure you have installed the latest firewall and anti-virus software to protect your computer against online attacks.
- 4.) Enter financial information only on secure sites. 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 lock icon on the browsers status bar, or a URL address that includes an "s" after the "http".
- 5.) Don't send cash or wire money for payment. Do not wire money via Western Union or Money Gram for items purchased online. You may be giving your money to scammers and you may never get the item you "ordered." Pay by credit or charge card.
- 6.) Keep a paper trail. Print and save records of all your online transactions, including the product description, price, online receipt, and e-mails.
- 7.) Review the refund policy and delivery rates. Look to see if you can return a product for a full refund if you are not satisfied. Check out who pays for the cost of shipping a returned item and if there a "restocking" fee for returning an item.
- 8.) Consider coupons. Some companies offer discounts via e-mail, and some websites collect and list codes for free shipping and other discounts. Search for the store with terms like "discount," "coupon," or "free shipping."
- 9.) Consider Reputation. Reviews from other people, experts, and columnists can give you an idea of how a product performs. But don't put all of your trust in one review. A brand's reputation for quality and good customer service can really pay off.
- 10.) Use your smartphone wisely. Mobile devices offer convenient consumer resources but may also provide fraudsters with your personal and account information. The rule of thumb is to be sure that what you are installing comes from a legitimate source, keep an eye on your bill, investigate if your battery runs down quickly, and try not to leave your phone unattended.
For more information on how to protect yourself from scams, log on to the Utah Division of Consumer Protection website at
http://www.consumerprotection.utah.gov.
