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Buyer Beware: How to Shop Safely Online
Know the risks, take precautions and shop online with confidence
Let’s say you are looking to buy a mobile phone. A brand-new one costs about $500 in the shop,
but you find someone in an online forum selling it for $250. Sounds like an opportunity not to be
missed?
Hard-to-beat bargains are one reason why many more people are now shopping online.
Convenience is another: You can shop online anytime and anywhere, avoid long queues,
compare prices easily and enjoy variety from around the world.
There is also a dizzying array of online retail platforms to send you into a buying frenzy –
blogshops, instashops (shops on Instagram), pure-click online stores, online stores of offline
retailers, marketplace sites like Amazon, Qoo10 and Taobao, auction sites like eBay, and deal-ofthe-day sites like Groupon and Superdeals, to name a few.
RISKS AND PRECAUTIONS
For all its benefits, however, online shopping has its pitfalls. Online scams are on the rise, and
scammers are increasingly sophisticated in their ways. Online shopping also poses inherent risks
because buyers are not able to check out the sellers and goods in person.
But this is not to say that you need to avoid online shopping. If you are aware of the risks and
take the necessary precautions, you will still be able to shop online with confidence. Here are
some of the risks:
1. Phishing
What is it: You click on a link in an authentic-looking email that asks you for your personal
information. It takes you to the website of a well-known company, such as your bank or a thirdparty payment service like PayPal. You don’t know the website is fake, for it looks really real.
When you enter your personal information, such as your password, address, date of birth,
identification number and credit card number, thieves capture and use it for their illegal activities.
How to reduce your risk: Be careful when companies ask you to click on email links to verify
confidential information such as bank account details. Links in phishing emails may also lead to
websites that will infect your computer with malware, malicious software that steals personal
information from your system. If you find an email suspicious, don’t open it or click on its links.
Update your operating system, internet security suite, browser and mobile app to the latest
versions; these will have the most up-to-date protection against viruses, malware and other
security risks.
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2. Identity theft
What is it: Sent over unsecured websites and unencrypted wifi networks, your personal and
financial information is intercepted by thieves who will assume your identity for online
transactions and illegal activities.
How to reduce your risk:
• Buy on secured sites only: To know if you are buying on a secured site, look for a locked
padlock icon on the browser’s address bar or an “https” prefix at the beginning of the URL – the
letter “s” stands for “secure”. Personal information sent through secured sites is encrypted until it
reaches the recipient.
• Shop online using your own devices
Shop only at home and not on a public computer, which may be infected with malware. If you
really have to shop online using your own device but in public, be sure not to do it over
unencrypted wifi networks.
• Use strong passwords
Use long and strong passwords that comprise both numbers and letters in uppercase and
lowercase. Have unique passwords for each account.
• Use safe payment options
Payment by credit or debit card is generally safe if you have taken the precautions. However, if
you discover unauthorised charges on your card, be sure to notify your bank immediately. In
Singapore, cardholders are liable for only up to a maximum of $100 if they have informed their
banks within a reasonable period of time and have not been found to be grossly negligent or to
have acted fraudulently. You can also use a safe third-party option such as PayPal to pay for
your online purchases without revealing your credit card number.
3. Problems with the merchant or the goods
What is it:
The goods fail to be delivered, or they turn out to be counterfeit or defective or do not match the
descriptions. Also, there are fake websites that look just like legitimate and well-known ones; you
may be tricked into making purchases on such websites if you fail to identity them. Another
problem: You receive a lot of spam after buying something from a retailer.
How to reduce your risk:
• Buy from reputable retailers, research unfamiliar ones
To minimize falling prey to rogue websites, do type in the web addresses directly rather than
clicking on pop-up ads. Buy from sites and sellers that are well recognised and trusted. If you are
thinking of buying from an unfamiliar retailer, seek out online customer reviews and
recommendations, and assess if it is trustworthy.
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• Compare the retailers
Always compare offerings from various shops, as well as their policies. Check on information
such as their prices, shipping details, return policies and shopper reviews before making any
decision. The information can help you to make your decision and you may even end up with a
better deal!
• Read the fine print
Before you add anything to your shopping cart, check if you agree with or accept the retailer’s
privacy policy and terms and conditions. Some retailers will email you more promotional offers
after your transactions; others will even sell your data to third parties. Check how they will use
your data, and look for the option to opt out of further offers if you don’t want to get spam.
4. Online shopping addiction
What is it: You spend hours on end browsing merchandise online, reading product reviews,
sharing finds and deals on social media. What started out as innocent retail therapy spirals into
an addiction, and you neglect your work and other responsibilities, not to mention racking up a
huge bill.
How to avoid:
 Limit your screen time, whether it is on the computer or the tablet, to restrict your access
to shopping sites.
 Cancel your credit card so that you won’t be tempted to spend more than what you can
afford. Keep your debit/ATM card with a family member to make it out of your reach.
Some shopping sites save their customers’ card details; disable this function and you
won’t be able to shop at all.
 If you need to buy anything, do it at physical stores. Make a list and write down why you
are buying each item; if the purpose for something sounds doubtful, don’t buy it.
 Get involved in other activities so that your mind won’t be preoccupied with shopping. If
your addiction gets out of hand, seek help from your parents or professional counsellors.
Last but not least, use your common sense. Should you take up that irresistible online deal of a
brand-new mobile phone at half its in-store price? Before you do, make sure you do your
research carefully about the seller and condition of the phone. Remember, anything that sounds
too good to be true probably is not true.
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REAL-LIFE SCAMS
More than 50 people, lured by below-market prices for smartphones and electronic gadgets
advertised online, were cheated of some $40,000 in “mixed delivery order” scams in July and
August 2013. Buyers first transferred deposits to local or overseas bank accounts. Then, they
were scammed out of more money when told they had to pay more to get the goods, which had
been delayed, wrongly delivered to another country or seized at customs.
– Reported in Today, 7 September 2013
Two teenage girls were arrested for scamming at least 70 victims. Offering Polaroid cameras and
films at low prices on a Facebook page, they tricked the victims into paying some $12,000 but did
not honour the orders.
– Reported in Digitalone.com.sg, 25 July 2012
OUTSMART THE SCAMMERS
Scammers exploit human weaknesses to beguile their prey. Learn about these psychological traits
and protect yourself.
Gullibility
We can be gullible at times. Some of us are more easily tricked than others, depending on our
personalities or circumstances such as emotional states. People anxious about a lack of money
may more likely fall for “upfront payment scams” – they are willing to send smaller sums of
money to scammers in return for bigger prizes or profits later.
Greed
This trait makes people fall for scams promising winnings, such as get-rich-quick investment
schemes and lottery scams for which they pay “fees” to get prize money. Money savings are
another draw: Shoppers are enticed by the low prices for high-value goods such as electronic
gadgets and branded bags.
Fear
Scammers play on people’s fear of losing out. They pressure potential victims with “warnings”
such as “Only a few left”, “For a limited time only” and “Hurry! Promotion ends today!” Such “
warnings” are marketing tactics used to get you fall for their scams.
Kindness
Unscrupulous merchants may tap people’s compassion. They promise to donate to worthy causes
for every item purchased using the “buy one, give one” method, but do not do as promised.
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