The risks of online retail

Online shopping may be a convenient way to avoid overcrowded malls this holiday season, but the risks to Canadians are growing.

Just-released figures from security vendor McAfee suggest 46 per cent of Canadians have encountered malicious activity while shopping online. With 18.9 per cent of Canadians’ holiday shopping budgets expected to be spent online this year, criminals are increasingly targeting consumers’ digital devices to plant malware, steal personal data, and launch identity theft attacks.

Online shopping now mainstream

The warning comes as more Canadians than ever before dip their toes into the online retail waters. A RetailMeNot and Ipsos survey concludes 73 per cent of Canadians plan to shop online this holiday season, with 10 per cent of them doing most of their shopping digitally.

Statistics Canada figures from 2012 highlight strong growth in online shopping, with Canadians spending C$18.9 billion online, up 24 per cent over 2010. More Canadians – 56 per cent, up five percentage points – ordered products and services in 2012 than in 2010 As the online shopping audience grows, the pool of potential victims grows, too.

Increasingly sophisticated scammers are taking advantage of shoppers who are often too busy to protect themselves. Lax security on PCs, tablets and smartphones – coupled with increasing amounts of personal and financial data stored on them – makes online shoppers the new target of opportunity in this season of supposed giving.

Consumer exposure doesn’t just come from online scammers, says Doug Stephens, retail expert, speaker and author of The Retail Revival. Shifty online retailers can also darken the season.

“Online shopping has come a long way in a mere 20 years, but there are still risks,” Stephens said. “That's not to say there aren't some risks inherent in brick and mortar retail as well, but at least I can physically verify the retailer’s existence, see their inventory and get a sense of the general appearance of their operation. Obviously this isn't possible online.”

Protect yourself

McAfee has released its 12 Scams of the Holidays list as a warning to shoppers before they start surfing, advising them to watch out for malicious apps, fake charitable requests, too-good-to-be-true deals, and rogue retailers. The Financial Consumer Agency of Canada is also sharing some recommendations:

• Avoid public Wi-Fi networks
  Only use secured wireless networks – they’ll have a lock symbol, and their address will start with https:// instead of the less secure http://.

• Practice safe passwords
  Never save passwords on your device. Don’t store credit card or other financial information online.

• Tighten your settings
  Install and maintain the latest security, anti-malware and anti-virus software on all your devices. Use a secure firewall, and disable file sharing, printer sharing and unneeded radios, like Bluetooth. Set your browser to block cookies and pop-ups, and prevent dangerous sites from loading.

McAfee online security expert Robert Siciliano says while the consequences of a hacker attack can be significant, ultimate responsibility rests with consumers. By installing the right tools and being on the lookout for sketchy online activities, they’re less likely to become victims.

“The thing with these security issues is you could have your bank account drained, you could end up in situations where you’re financially destitute. Or in jail, where bad guys steal your identity and commit crimes as you,” Siciliano said. “So if we’re going to continue to enjoy these conveniences of technology, we can’t just sit idly back and think somebody else is going to protect me and I have nothing to worry about. You have to take personal responsibility for your security, and that means being educated, being aware, and installing the necessary tools.

“I don’t advocate fear,” he added. “I think that people should be prepared.”

Carmi Levy is a London, Ont.-based independent technology analyst and journalist. The opinions expressed are his own. carmilevy@yahoo.ca