Online Purchases

Scenario: Online Purchases

You need to use a credit card number for an online purchase of office supplies. However, you've heard stories about Internet credit card fraud, and you want to make sure it doesn't happen to you.

What you can do

Keep your data private while it's traveling from your computer to its destination

Networking is like passing notes in class: when you just write a note down and hand it to the next person (or computer) in line to pass along to the recipient, you never know who might read it on its journey. Encryption is like putting your note in a locked box that only the intended recipient has the key to open. There are some easy ways to tell whether your information is being encrypted for your privacy:

• When you use a web site that asks for information such as passwords or credit card numbers, make sure that the URL begins with https:// and that there's a closed security lock displayed in the border of your browser window.
  
  The closed lock and https:// URL mean that the data is encrypted all the way from your computer to the computer that should receive it. No other computer will be able to "read your note" as it's passed through the network to the computer that should receive it.
  
  It also means that you can safely use that page through UIUCnet Wireless and QuickConnect. QuickConnect doesn't add any encryption to a connection; therefore, the software you use -- in this case, your web browser -- has to provide the security you need over a wireless connection.

• Email is the exception to the web site rule given above. Never send passwords or bank or credit card information through email!
  
  Even if you're using Express Email or another web-based email interface that gives you the closed lock and https:// URL described above, the information is kept private only from your computer to your email server, which is the first "computer that should receive it." After it arrives at your email server, the information is not kept private and encrypted from one email server to another.
  
  In addition, if anyone ever asks you for passwords or bank or credit card information through email, it's probably a fraud and should be reported to the authorities.

Online sellers: Deciding who to trust

It's not always easy to decide who to trust online."Enlightened paranoia" is a helpful approach to take. If you haven't dealt with a company before, it's best to quickly research their background before buying.

• Does the Better Business Bureau have any reports on this company? Does Google have any results for a search on complaints about the company? Learning from others' mistakes is simpler and less traumatic than learning from your own.
  
  
• Do they have a physical address and phone number posted on their web site? If not, it can be more difficult to track them down if you have problems with them or their service.
  
  
• Do they post their return and repair policies online? Read to see about the company's policy for returns, warranties, nondelivery of merchandise, shipping insurance, and so forth.
  

Advanced topics

• Privacy policy statements are now required by law -- find them and read them.

Every online business based in America must post a page describing what private information they collect and how they handle it, including whether they can resell your personal information (from email addresses to credit cards) to other businesses. This information helps you judge whether you trust the company's procedures.

• Use an intermediary service when you can.

  The fewer places you send your credit card number, the fewer chances there are for it to be intercepted and misused. Therefore, it's a good safety precaution to select an intermediary company like PayPal, BidPay, Western Union, or the like to handle online payments for you.

  You provide your financial information to the intermediary company, and then go and buy your item at the seller's web site. Then, instead of sending your credit card to all the different sellers, you direct the intermediary company to make a payment to the seller. This way only one company sees your credit card number, and you can buy from many different sellers without sending your credit information to many different locations.

• If you see any unexpected charges on your credit card or unexpected transfers from your bank account, you may be a victim of identity theft. For more information on identity theft and how to fight it, read the University of Illinois' Social Security Number Policy.