Avoiding fraud when shopping online.

• Position: Consumerism - Brief Article

The National Fraud Information Center (NFIC), a project of the nonprofit National Consumers League, was established in 1992 to combat the economic and social menace of telemarketing fraud. In 1996, the Internet Fraud Watch (IFW) was created to operate with the NFIC, expanding the scope of the League's fraud-fighting efforts to scams in cyberspace.

With online shopping peaking for the holiday season, the NFIC and IFW offer the following tips to avoid being ripped off:

Get the scoop on the seller. If you haven't done business with the seller before, check the complaint records at your state or local consumer protection agency and the Better Business Bureau. Get the physical address and phone number in case you need to contact the seller offline. Resolving problems can sometimes be difficult when you are dealing with someone from a distance, especially if the seller is located in another country. Look for information about whether the seller belongs to any voluntary programs that encourage good business practices and help resolve complaints.

Use a credit card. It's the safest way to pay for online purchases. The Federal Fair Credit Billing Act gives you the right to dispute credit card charges for goods or services that were not ordered, never received, or misrepresented. If you pay by check or money order, your money may be gone before you realize you have a problem. Your rights are not the same with debit cards or bank debits. Your bank may voluntarily offer a similar dispute process, but in the meantime, the money is gone from your account.

Ask your credit card issuer about single-use or substitute credit card numbers. This new technology allows you to use your credit card without putting your real account number online. Credit card issuers who offer this service provide a substitute number, linked to your real credit card account, that you utilize for one purchase only. Some credit card issuers let you create a substitute number for regular payments to the same company--e.g., your phone or cable bill. Since the company never gets your real account number, your financial institution is protected from abuse by "hackers" or dishonest employees. Only your credit card issuer knows which...