People that neglect the security factors involved with logging on to their financial accounts are at risk. For some reason despite the many warnings out there and news reports streaming in that cover stories of financial fraud online, there are still a large number of people that do not take their online security seriously.
Arguably the group targeted the most are those that are dealing in Bitcoins or other digital currencies. Next are those that use trading accounts online such as foreign currency trading as well as trading in the stock market. Then, of course, there are online shoppers and those that use music and movie download sites.
The biggest issues out there that are costing banks and governments a fortune are those people that are not paying attention to the way they log on to their accounts. Online shoppers seem to give away their credit card details very easily without using any kind of safety net. They are then surprised when random amounts of money are taken out of their bank account for online purchases. This is largely due to the fact that or some reason they trust the website they are giving their financial information to.
Avoiding Shopping Card Financial Fraud
Most websites will use a private shopping cart that cannot see your bank details. The shopping cart is run by a third-party company and requires a MasterCard or VISA password during the transaction. However, if the website does not ask for a PIN number or security clearance when making your first purchase, then do not use that website for online transactions.
If you are asked to fill in a form with your bank details or provide your bank details over the phone or in an email, do not use that website. The site owners are most likely collecting your credit and debit card information enmass and then another group will be trying to fraudulently use your card.
Use websites that speak your native language. For example, in Arabic,you need to search for the word الخصوصية, which literally means privacy and then read their privacy information in your own language. If the website is in a language not familiar to you, you could make a mistake and misunderstand the terms and conditions or how the website claims to handle your private information.
How Are Bitcoin Fraud and Shopping Cart Fraud Connected?
Digital currencies use anonymous ledgers. It means that the person on the other end of the transaction cannot be traced when transferring virtual currencies. Once a website has your credit/debit card details, name and address, they caneasily set up a cryptocurrency wallet under your name. They can then purchase Bitcoin and quickly transfer that Bitcoin to another anonymous Bitcoin wallet.
There is no way to trace this type of fraud and in many cases, the bank will not refund your account in full if this type of fraud occurs and certainly not if it happens more than once.
How Can You Protect Yourself?
You can use VPN software to protect your internet connection if you are logging onto websites from outside of a secure network. This is the first course of action you should take or alternatively, only ever make financial transactions from your own home.
Secondly, instead of giving your credit/debit card details to a website, use a website that accepts PayPal or another reputable e-wallet. This way you are protected by the buyer protection of the e-wallet and there is no way for the website to defraud you because they do not have your e-wallet logins. The website’s e-wallet will be updated and if you have any issues, you can open a dispute.
The e-wallets team will then investigate to see if there is any fraudulent activity involved and retrieve your money.