The Pantagraph (Bloomington, IL.)

December 5, 1999

NET SHOPPING HAS ITS OWN UPS, DOWNS

A phone call to his bank saved Illinois State University junior Jeff Burton $1,000. Burton, a social sciences education major, had taken the advice of a friend and used the Internet auction service eBay to buy a personal computer. As he waited for his purchase to arrive in the mail his suspicions were raised when he received a forwarded e-mail message complaining about Netcom 4, the company that sold him the computer.

"Warning flags kinds of went up, and I got real nervous," he said. Burton, who had been saving money for a year to buy the computer, called his bank and asked them to stop payment on the check he sent. As it turns out, the bank was just barely able to prevent the transaction before it was completed.

Soon after he got his money back, Burton said, Netcom 4 had disappeared from the eBay site and there was no way to contact the company. Instead, he contacted eBay, but was told the auction company ha no information on Netcom 4.

"I almost lost $1,000, but I just happened to catch the check," Burton recalls. While Burton's story has a happy ending, consumers who aren't quick enough to stop payment on a check or don't receive a warning about such a company might not be so lucky. The problem could become more widespread this holiday season, as Internet shopping begins to take off.

Preston Gralla, author of "The Complete Idiot's Guide to Online Shopping," said studies indicate almost 70 percent of Americans who have Internet access will shop online this holiday season. In all, he added, this could add up to sales around $8 billion. "Sales are expected to be tremendous, because it's so easy and convenient to shop online," he said.

Michael Kessler, president and chief executive officer of Kessler & Ltd, a company of investigative consultants who specialize in cyber crime, said "without a doubt" this will be a banner year for online shopping activity.

More and more Americans don't want to travel long distances to get bargains, he noted, so the Web is seen as a hassle-free avenue for holiday shopping.

However, added traffic means people might run into problems, according to Gralla. "What happens are the same problems people normally face, but they're magnified," he said. Aside from the difficulty and slowness associated with logging onto busy sites, Gralla warns that customers need to be on the look out for scams and other bad deals.

According to Gralla, the main thing to watch out for is unsolicited e-mail which tempts a shopper to buy a certain product. "If you don't know the store sending you that e-mail or you haven't specifically asked for that e-mail, that's a sign it might be a scam," he explained.

Michelle Cramer, operations manager at the Better Business Bureau of Central Illinois in Peoria, said shopping on the Internet can be just as safe as shopping in a store. Still, there are several things she urged consumers to look out for.

Many questionable Web sellers use threats of limited availability to trick customers into making snap decisions. However, Cramer said any legitimate company expects customers to take their time when purchasing goods online.

Other companies might ask for a fee up front or expect buyers to send overnight money orders. According to Cramer, these businesses are often attempting to skirt postal fraud laws and should not be trusted.

Finally, good presentation does not necessarily mean reliability. It is all too easy to create a visually appealing Web site, and the Better Business Bureau suspects flashy design is sometimes an attempt to trick customers into falling for a scam.

Overall, Kessler said common sense is the key to successful online shopping. "First and foremost, if it looks too good to be true it probably is - you're not going to get a brand name watch for $200. There is a tremendous amount of counterfeit product on the Internet," he said.

According to Kessler, customers should be especially wary of popular holiday items like clothing, toys and jewelry and should always buy from a reputable, longstanding Web site.

If a shopper isn't sure about a certain item, Kessler said they can check out his firm's Web site at www.investigation.com for a list of sites that carry counterfeit products. The list will be posted throughout the holiday season.

The Better Business Bureau also offers a list of tips to keep Web shoppers safe during the busy holiday season.

First, they say, investigate the company before committing to a purchase. Finding out the physical location of a business is always a good idea. Gralla agrees with this idea. "Contact the site either by e-mail or telephone ahead of the time you make a purchase," he said. "If they don't get back before you buy something, you know you won't hear from them after you buy it."

Secondly, the bureau stated, until a shopper is positive of a online company's reliability, they should not give out their bank account number, credit card number or personal information. Once the customer is

ready to make a purchase, they should use a secure Internet browser that encrypts their information and should pay for purchases only with a credit card that can be protected under the Fair Credit Billing Act.

Gralla also promotes the use of credit cards, saying this is the only way to ensure purchases.

However, Kessler said customers must take one more step before sending credit card information – make sure the site is secure. Usually, he said, the browser being used will flash a message across the screen to indicate when a shopper is entering a secured site. This means it is OK to feel safe using a credit card.

Finally, the bureau advises customers to test companies before making a major purchase over the Internet. Buy something small and inexpensive first to see how the company handles orders.

After his negative experience, Burton also has some tips for new online shoppers. While he said he would take part in e-commerce again, he would be a lot less trusting than before.

First of all, anyone using eBay should take advantage of a safeguard where the company acts as a third party to hold money while goods are delivered. Although Burton didn't check into the service at the time, he believes it would help prevent problems in the future.

Gralla, who has a book specifically about online auctions coming out in a few weeks, agrees this is always a good idea. In fact, he goes a step further and urges customers to avoid any online auction sites that don't offer such a service. If problems do arise after a purchase is made and paid for, Kessler said there are still roads that can be taken.

First, a shopper should return any counterfeit items and notify their credit card company about the problem. If that is unsuccessful, he said, the next step is to write a letter to the local Better Business Bureau location and to the operator of the Web site.

Finally, Kessler said, customers who are simply out of luck as far as their purchase goes should still try to help others avoid problems. "They should write a letter to the Internet service provider about the site," he said. "Even if its too late for them, they can spare the next person a lot of grief.