Purchasing goods online is becoming increasingly popular year by year due to its convenience and the ability to choose from a vast assortment without leaving home. Users can shop at any time and from any location, with just a phone or computer at hand.
However, as the popularity of online shopping grows, so does the number of payment fraud cases. In this article, we have reviewed how to protect yourself from malicious actors and safely shop online, ensuring that your money remains securely protected and your purchases bring only satisfaction. Online payments can and should be safe – the key is to follow simple payment security rules.
Common methods of payment fraud
Fraudsters use various methods to trick users into revealing their personal or financial information, which they then use to access the victims' funds. The most common of these methods include counterfeit online stores of well-known brands, fake marketplaces, and phishing.
Criminals may create fake websites of well-known stores that closely resemble the official pages of well-known companies. These sites usually have nearly identical designs and logos, misleading users and causing them to lower their guard. When making a payment on such a site, your money could end up in the hands of criminals through a fake payment form.
The second method involves fake marketplaces. These sites offer attractive prices on popular products or run promotions that seem too good to be true. Shoppers are lured in by the low prices and make purchases, not realizing that their money is going to the fraudsters' accounts and that they will never receive the promised goods.
Phishing is another method of fraud that relies on manipulating people to gain access to payment information. Fraudsters may use fake online stores to call or send emails, persuading you to disclose your card details and gain access to your funds. Learn how to recognize such phishing messages in our article "What is phishing and how to protect your personal information"
How to shop online safely
To shop safely online, it’s important to follow a few simple and effective rules:
Shop only on verified websites
Safe online shopping begins with verifying the seller. Ideally, use well-known marketplaces for online shopping, such as Rozetka, Prom, OLX, or the official websites of reputable stores. However, keep in mind that fraudsters can create clone sites of popular brands, so it's essential to remain vigilant.
If you plan to make a purchase from a new seller with whom you haven't dealt before, be sure to assess the completeness and quality of the information provided on the website, including detailed descriptions and real photos of each product, as well as the availability of contact information, such as a physical address and a phone number. Additionally, check the credibility and plausibility of reviews about the seller in search engines, paying attention to the balance between negative and positive feedback.
Fraudulent websites or social media pages are often hastily created with minimal content, and their contact details frequently lack a phone number, or the provided number cannot be used to reach the seller.
Always review the store’s policies
Before making purchases online, familiarize yourself with the seller's delivery terms, warranty obligations, and return policy. Firstly, it’s crucial to understand the delivery timelines, as you might need the product by tomorrow, but the seller indicates a delivery time of up to 30 days. Next, understand the return conditions for a product that doesn't meet your needs- who pays for shipping in both directions, whether the full cost of the product is refunded, if there’s a return fee, or if the store only offers an exchange.
Check prices
Before making online purchases, pay attention to market prices. Nowadays, there are many aggregators that collect data from various online platforms, showing the price range of products- from the lowest to the highest. This will help you understand the cost. If the price on the website is significantly lower or higher than the market average, it may be a warning sign that purchasing from this seller carries certain risks.
Avoid discussing transaction terms in messengers
If you’re buying on a marketplace, keep all negotiations within the chat of the verified platform, which ensures protection and confidentiality. Do not click on links sent by strangers using messengers and social networks, as this could compromise your security.
If you’re purchasing from an unknown seller’s online store, it’s advisable to talk to the seller by phone, as fraudsters usually avoid this method.
Don’t rush into making a purchase
When communicating with the seller, don’t hesitate to clarify all the details about the product and try to obtain as much information as possible. If you encounter evasive answers, it’s better to refrain from the purchase. Additionally, fraudsters often use psychological pressure and may insist that you make a purchase quickly without further clarification, claiming that only one item is left in stock.
Basic rules for safe online payments
Set up your payment card for online transactions
To shop safely online without the risk of losing funds, it’s essential to take extra steps to protect your payment card. It is recommended to open a separate card for online payments, ideally a virtual card. Before making a purchase, you can transfer the necessary amount to this card- this helps reduce the risk of unauthorized access to your funds.
Set limits on online card transactions. This will restrict the maximum amount a fraudster could steal if your data falls into the wrong hands.
Activate notifications for all card transactions via SMS or online-banking. This ensures real-time monitoring of your account, helps you quickly detect suspicious transactions, and allows you to block the card promptly.
Add your card to Google Pay or Apple Pay
Apple Pay and Google Pay are digital wallets that store your bank cards and allow you to make secure online purchases directly from your smartphone or another compatible device.
Online payments through Google Pay and Apple Pay guarantee a high level of payment security by using advanced data protection technologies, ensuring that your banking information remains confidential and inaccessible to fraudsters. Safe online shopping using digital wallets is ensured by the following:
- payments through a digital wallet are only possible after entering your password, fingerprint, or facial recognition, providing a basic level of security.
- your actual payment details, such as your credit card number, cvv code, or bank account number, always remain hidden and are not transmitted during the transaction.
- your data is encrypted, making it unreadable and therefore protected.
- your bank and the payment system also actively monitor suspicious, unauthorized transactions and block any suspicious activity.
Pay only from your own devices
Always make online payments from your personal device- phone, laptop, tablet- and use mobile data or your home Wi-Fi network.
Avoid making online payments from someone else's devices or when connected to a public Wi-Fi network. Doing so may result in your passwords and financial data falling into the hands of fraudsters, who could gain access to your money.
Check the security of the website
To shop safely online, always ensure that the website you are making a payment on is secure. You can check this by double-clicking on the site address in the address bar. If the site address begins with "https://" and there is a lock icon or this icon appears when you click the button to the left of the address bar, it indicates encryption between your device and the server.
Always verify the website's address. Legitimate websites have a URL that fully matches the brand name, such as rozetka.com.ua. Clone sites may have a similar but slightly different URL, such as rozetka-shop.com.ua or roozetka.com.ua, etc. Additionally, the original website always provides official contact information: address, phone number, and email, while clone sites may provide false or incomplete information.
Only after ensuring the website's security should you enter your card details.
Do not disclose secret card data
Never disclose your card’s secret data to the seller over the phone or in messages. This includes the PIN code, CVV2 code, online banking password, answers to security questions, and verification codes you receive via SMS. Remember that the CVV2 code should only be entered in the appropriate field on a secure payment page, and other data are not required for online payments.
Once you have confirmed the security and safety of the website where you are making the payment, you can enter your card's CVV2 code. The CVV2 code is mandatory for making card payments online; without it, the payment cannot be processed, as this ensures that the payment is initiated by the cardholder.
To learn more about where this code is located, what it is used for, when it can be entered, and when it should be kept secret, read our article "CVV security code on the card"
How to make a payment
One-time entry of payment card details
To successfully complete an online payment, follow these simple steps:
- when you click the "Pay" button, the online store will redirect you to a secure payment page. Ensure that the site where you are making the payment is secure, as per the recommendations in the previous section. A secure site guarantees that you are reliably connected to the payment system, which acts as an intermediary between your bank and the store.
- enter your payment card details: the 16-digit number on the front, the expiration date, and the 3-digit CVV2 code on the back. Transaction security is ensured by standards set by Visa and MasterCard for acquiring banks and payment intermediaries.
- carefully check the entered details, the payment amount, and confirm the payment.
- after this, you will receive a one-time password to confirm the payment via SMS or push notification in your bank's mobile app. This password is valid only for a short period and is available only to the cardholder, further guaranteeing payment security.
Payment using a saved card
If you regularly make purchases at a specific store, it may be more convenient to save your payment card details. This will free you from having to enter your full card information each time you make a payment. To pay for goods using a saved card on the website or in the mobile app, select the appropriate card and, if necessary, confirm the transaction.
Payment via digital wallet
Today, most online stores and services offer the option to pay using digital wallets such as Apple Pay and Google Pay. As previously mentioned, these wallets securely store your card information and ensure safe purchases on websites, while also eliminating the need to enter card details with each payment.
To make a payment through a digital wallet, you need to:
- select the payment method through the digital wallet;
- if you have multiple cards registered, choose the one you want to use for the payment;
- confirm the payment using Face ID, fingerprint, password, or code from a message.
Where to report in case of fraud
Report the incident to your bank's support service and the Cyber Police. In case of accidental disclosure of your payment card details on a suspicious website, immediately call your bank at the number listed on the back of your card to block the card. To submit a complaint to the Cyber Police, you can use one of the following methods:
- File a report with the Cyber Police Department. Your complaint will be promptly recorded in the system, and law enforcement will begin working on it;
- Send an email to callcenter@cyberpolice.gov.ua;
- Call 0 800 505 170 to report the incident.
Gather all available evidence to support the fact that fraudulent actions have been committed against you. Such evidence may include links to phishing websites or fake online stores, screenshots of webpages, bank statements, screenshots of notifications from online banking regarding transactions made by fraudsters on your behalf, screenshots from social media, and phone numbers from which you received calls from the perpetrators.
As you can see, ensuring security during online shopping is not a difficult task. Following simple yet important rules can significantly reduce the risk of falling victim to fraud. Using strong passwords, being cautious of suspicious offers, and using secure payment methods are just a few of these measures. Remember that safe shopping in online stores largely depends on your vigilance and responsibility. So, follow the recommendations, and online shopping will remain a pleasant and safe experience for you.
