You’ve heard it in the news countless times – Internet shopping, or ecommerce, pose many scams, threats, rip-offs, and identity thefts. As the media puts it, ecommerce is a virtual world wherein people thrive by plundering those who are brave (or stupid?) enough to enter their vital information such as credit card details online.
Is there any truth in this? No.
An average Joe who owns a computer in his home may not understand how ecommerce works. You enter sensitive credit card details on an ecommerce website, but where does the information go? The fear of the unknown is what prods the newsmen to go on a blow-by-blow horror story on the danger and threats ecommerce brings. While in reality, paying in plastic at a local diner poses a far greater risk of credit card fraud than shopping online.
Statistically, the odds of ecommerce identity theft are low. It could happen, but most likely won’t. In 2009, the Federal Trade Commission reported that 43% of identity theft came from stolen wallets documents. Only 11% of identity theft stemmed from ecommerce methods. Yes, online identity theft, or ecommerce credit card theft, may be a growing threat, but when comparing with identity theft as a whole, it is a very slim percentage. In the world of ecommerce, everything is electronic. Which, simply goes to say that there are more counter-measures available such as secure transaction servers, SHTML, SSL certificates, etc. Generally, online shopping is safer than paying in plastics at retail stores.
To drive a point, have you ever wondered what happens to your credit card when your friendly waiter takes it away from you to swipe your meal? While it may be unlikely, but by a sad twist of fate, a deceitful waiter could easily swipe your credit card into a gadget and get all your details in an instant. What could be the solution? Perhaps a battery-powered WiFi credit card terminal where you do the swiping yourself or better yet, pay in cash.
Going back to
ecommerce, is there any reason to be afraid of shopping online? The answer is no. Although online identify theft exists, it is relatively a small portion of identity theft in general. So, using your best judgment can do a lot of good. If for example an ecommerce website looks hastily done, is cheap, and somewhat shady, then most probably it is. But if a reputable site offers great prices on a commodity, then by all means, it is a steal! Shop ’til you drop!
