RIP-OFF

‘IF IT’S TOO GOOD TO BE TRUE…’

WRITERS:

WHILE SHOPPING ONLINE THIS HOLIDAY SEASON, BE SURE TO PROTECT YOURSELF FROM ONLINE FRAUD.

The holidays are coming and many Americans are turning to the Internet to hunt for deals, avoid crowded stores, and eliminate some shopping stress. Online retail sales are booming in the U.S. and are set to reach $262 billion in 2013, according to data collected by Forrester Research. Many people shop online to skip long lines and find a better selection. Want to avoid the post-Thanksgiving “Black Friday” shopping rush? Many online shopping portals offer “Cyber Monday” deals on the Monday after Thanksgiving, making it easy to snag great deals from home.

Shopping online can be a great way to save time and money, but it’s important to watch out for scams.

We recommend that you always shop on well-known sites like Amazon.com, Overstock.com, or the online stores of major retailers. These sites offer clear return and refund terms and good site security, reducing your chances of fraud. One of the drawbacks of shopping online is you do not have the opportunity to view an item in person and must rely on photos and specifications. Always read item descriptions carefully to be sure you understand exactly what you’re getting and what the total cost (including shipping) will be. Before buying from an unknown retail site, verify the store’s existence and search for independent feedback by doing a quick search for “store name rating.” Obtain a physical address and phone number if possible so you can contact them during and after the sale in case you have any issues. If you want to buy from a private seller on eBay or other auction site, verify the seller’s feedback from other buyers.

Even online, the old adage holds: “If it looks too good to be true, it probably is.” Beware of sites that offer unbelievable deals on expensive or hard-to-find items, as they could very well be scams. Inquire about shipping costs and be sure you understand warranties and return policies. Some dishonest web stores may advertise an absurdly low price for a popular item and then attempt a bait-and-switch fraud by claiming the original item is out of stock and encouraging you to purchase a more expensive alternative. While it’s not uncommon to receive legitimate emails about an order from online stores, treat requests for additional information skeptically and never send financial information through an email.

When shopping online, it’s best to use a credit card instead of a debit card since most financial institutions offer better fraud protection on credit cards. Never pay by wire transfer since these transactions usually end up being fraudulent. The best protections a credit card offers are the ability to dispute fraudulent charges and the ability to charge a purchase back to the seller if it does not arrive or is not as described. If you’re not sure about the fraud protections attached to your credit card or financial accounts, call your bank or speak to your financial adviser to find out more. Scammers are particularly active around the holidays when they know account activity is high and fraudulent transactions may be missed. Make a habit of routinely checking your credit card and bank statements for charges that don’t belong.

Some fraudsters try to trick shoppers by creating malicious websites that appear legitimate but are only there to capture financial information. Genuine retail sites use industry-standard security for their shopping carts; before entering any personal or financial information, check the address bar of your Internet browser for a lock symbol or the letters “https” preceding the web address to ensure a secure connection with the website. If you’re not sure you have a secure connection, do not enter any sensitive data because it could end up in a scammer’s hands. It’s a good idea to keep your computer up to date with important security patches and to use the latest version of an Internet browser like Internet Explorer, Firefox, or Chrome. Pay attention to

Cyber Monday online sales reached $1.47 billion last year, representing the heaviest online spending day in history. SOURCE: www.practicalecommerce.com/articles/3832-Analyzing-Black-Friday-Cyber-Monday-and-Overall-Retail-Sales

Monday online sales reached $1.47 last year, representing the heaviest online spending day in history. www.practicalecommerce.com/articles/3832-Analyyzing-Black-Friday-Cyber-Monday-and-Overall-Retail-Sales they say a site may be unsafe, don’t click through or continue to shop.

Shopping online is a great way to hunt for hard-to-find items, save money, and avoid the holiday shopping rush. Most people have a safe and hassle-free experience online, but it’s always best to be prepared and alert for fraud. Many of these online shopping tips are good practice for offline shopping, as well. Always protect your financial information and review your financial statements for fraudulent transactions. Speak to your financial adviser if you have questions about keeping your financial data safe.

ROBERT AND THOMAS FROSS founded Fross & Fross Wealth Management with the shared vision of creating a truly world-class experience for their clients. Specializing in offering comprehensive financial planning to high net-worth retirees, Fross & Fross manages over $300 million in assets and maintains a stellar reputation of professionalism and experience throughout The Villages.

Securities and advisory services offered through SII Investments, Inc., member FINRA, SIPC and a Registered Investment Advisor. Fross and Fross Wealth Management and SII Investments, Inc. are separate companies.