Online shopping dangers

This article is the archived version of a report that appeared in June 2009 Consumer Reports magazine.

An estimated 1.7 million households were victims of ID theft committed over the Internet, our survey shows. Of the respondents to our survey who fell into that category, two-thirds said the incident occurred because of an online purchase. Other sources of ID theft included hacked computers, e-mail scams, and compromised financial transactions.

In 2008, the Consumer Sentinel Network, a joint project that includes the Federal Trade Commission, National Fraud Information Center, Internet Crime Complaint Center, and some Better Business Bureaus, reported 370,000 consumer-fraud complaints. In 63 percent of those, the defrauders, which include a variety of businesses, initially made contact with the consumer via the Internet.

Protect yourself

Be cautious about with whom you do business. "Someone can set up an e-commerce site in hours," says Brent Remai, vice president of consumer marketing for security software maker McAfee. "And even if a site isn't set up by a cybercriminal, it can be hacked."

Even when shopping at a site that seems trustworthy, first check it out with the Better Business Bureau's online division. Consider using a two-way firewall, which blocks software that's on your computer from sending outgoing communications without your knowledge. You can get one free of charge at www.zonealarm.com.