Avoiding fraud when shopping online. (Consumerism).

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 substitute numbers have been used for your account, and your credit card dispute rights remain the same.

Look for clues about security. At the point you are asked to provide your financial account information, Social Security number, or other sensitive personal data on a website, make sure the letters the beginning of the address bar at the top of the screen change "http" to either "https" or "shttp."

Your browser may also show that your information is being encrypted, or scrambled, as it is so no one who might intercept it could read it. Look for a symbol at the bottom of your computer screen as a broken key that becomes whole or a lock that closes. However note that this does not mean the company will securely store your information once it has it. See what the website says about how your information is safeguarded. Don't provide sensitive information by e-mail, as it is generally not secure.

Know the real deal. Good companies will provide you with plenty of information and make it easy to find before you commit to a purchase. Make sure you know what you are buying; how much it costs; whether there are any warranties, guarantees, and return policies; and how to contact the company if you have questions. This is crucial when you are buying online, since you can't actually see or use the product or service before you pay. Look for information about delivery time, too. By Federal law, companies must ship the goods or perform the service within the time promised or, if no time is listed, within 30 days of receiving your order. If they don't, they have to notify you and give you the option to cancel.

Keep proof handy. Print out the information describing the product or service and the terms of the deal, as well as any confirmation of your order. Put it in a file in case you need proof later of what you bought, how much you paid, when you bought it, or any promises that were made.