How shopping on your mobile or social networks exposes you to fraud
By TARA EVANS
Updated: 16:20 BST, 1 July 2011
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Logging on: Shopping via your phone or social networking sites could expose you to fraud
Tech savvy shoppers who buy via social networking sites and mobile apps are at a greater risk of fraud, according to new research.
And researchers claimed that as much as £30m could be lost to fraudsters by 2015.
The risk of fraud is higher when shopping via mobiles and social media sites because users are required to provide less information when making a purchase, according to online merchant PayPoint.net.
As technology develops and gadgets such as the iPhone become more popular, more consumers are using shopping via apps or on social networking sites like Facebook.
The research, which was conducted by the Centre for Economic and Business Research (Cebr), on behalf of PayPoint.net, predicts that online fraud is likely to rise by 18 per cent, from £165.2million in 2011 to £195.3million in 2015.
The growth of mobile and social media shopping is expected to drive online sales to £33.7billion by 2015, an annual growth of 4.5 per cent.
In recent years e-commerce fraud has declined as businesses adopt more secure payment systems and fraud screening protection tools, such as Verified by Visa and Mastercard SecureCode.
Michael Norton, managing director of PayPoint.net, said: ‘Shopping on a mobile phone or favourite social media site is the next big thing in e-commerce, but criminals are likely to capitalise on poor awareness of the risks by consumers and retailers alike.
‘This study shows these new ways of shopping could be victims of their own successes for all the wrong reasons. The next few years will be a period of trial and error as mobile and social media commerce evolves in the UK.’
How spending online has soared
In 2010, internet retail sales totalled £22.3billion, compared to £9.1billion in 2006, according to the Office of National Statistics. Over 60 per cent of adults used the internet every day during 2010, double the amount in 2006.
In 2010, 31 per cent of web users connected to the internet via a mobile phone.
Spending power: How the internet is raking in the retail pounds.
How to stay safe when shopping online
While websites work hard to protect you from online shopping fraud consumers must also play their part. Here are some simple tips to arm yourself against phising and fraud.
Beware of suspicious links
If you think you’ve clicked on a link and have been taken to another website, be very careful about what you click on. If the website seems to look like a major web service but you think it might be fake, you can type the URL of the real website in the address bar to check.
Keep your computer up to date
There are some easy steps everyone can take to avoid spam and malicious content. You can check the version you are using is up to date on the website for your browser company. Make sure you have up-to-date security software on your computer that includes anti-virus, anti-spyware and anti-phishing protection and a firewall. Finally, make sure you’ve set your operating system to update automatically.
Use different passwords for your different online accounts – and keep them secret
Don’t make it easy for cybercriminals. Use different passwords for your various online accounts. If you use the same password everywhere, you could lose access to all of your accounts at once if one of your accounts is compromised. Think of a complex password that can’t be easily guessed. Avoid common words, and make sure your password is at least eight characters long and includes capital and lower case letters, numbers, and symbols. Finally, be wary of where you enter your password.
Be careful when accepting or sending friend requests on social networks, and only accept requests from people you know
Use caution when accepting or sending friend requests. Be careful to accept friend requests only from people you know in real life. If you are worried that someone will make inappropriate posts or send offensive messages, you can block them using the link below their profile image.
Shoppers Delight or Gangers paradise: Online shoppers beware of e-commerce
