DOJ warns shoppers vs online fraud, issues ‘red flag’ list

Amid an increasing trend in the use of online transactions, the Department of Justice (DOJ) on Friday reminded the public to be more vigilant when shopping online.

In a 15-page advisory, the DOJ warned the public against online fraud and provided a list of "Do's and Don't's," as well as "red flags" to spot suspicious transactions and protect themselves in electronic or e-commerce.

“As citizens enjoy the convenience and choice in online shopping platforms, fraud and abuses are happening. These include false advertising and sale of counterfeit goods as forms of deceptive sales practices,” said DOJ Secretary Leila de Lima.

"”Existing laws to protect consumers apply with equal force to the Internet,” she added.

The DOJ, through its Office of Cybercrime, urged consumers to exercise due diligence before purchasing online and know more about the seller and the product or service and the payment mode.

This includes background check and to guard against fly-by-night operators, it said.

The DOJ-OOC also said the public should be careful in sharing personal information and should educate themselves on various forms of online fraud.

"Red Flags”

The DOJ urged online shoppers to be mindful of some of these "red flags" in online shopping fraud:

-- Products are advertised at very low prices compared to other websites — if it sounds too good to be true, then it probably is a fraud;
-- Online sellers with poor ratings and/or feedback;
-- Online sellers who ask you to pay by money transfer service or direct to their bank account rather than through the site’s preferred payment method;
-- Websites with no contact details such as a physical address or telephone number;
-- Websites with limited or no information about privacy and their terms and conditions of use.

The DOJ said online fraud does not happen only during online shopping but may also come in these forms:

-- Fake websites - A website that either mimics a genuine reputable online business by using a very similar website address or that pretends to be a legitimate business with the sole purpose of defrauding unsuspecting shoppers.

-- Online auction scams - Receiving goods that are counterfeit or that significantly differ from the original description and are of lesser value. In some cases, no goods were delivered at all. The fraudster may also try to persuade his victim to pay by means other than the preferred method of the auction website.

-- Weight loss or medicine scams - A scheme which offers alternative slimming aids or medicines to cure obesity, cancer and other medical conditions. These products are rarely properly tested and can even be harmful.

-- Phishing emails - Emails purportedly received from a legitimate and well-known source which contains a link to a false but credible-looking website where the victim will be asked to update their personal and/or account information. Banks and other legitimate online businesses will not ask you to do this.

The DOJ also encouraged online shoppers to exercise their rights and seek redress from relevant government agencies, citing several laws aimed at protecting Internet buyers, including:

-- Republic Act No. 10175 or the Cybercrime Prevention Act of 2012,
-- Republic Act No. 7394 or the Consumer Act of the Philippines,

-- Republic Act No. 8792 or theElectronic CommerceAct of 2000, and

Joint Department of Trade and Industry (DTI)—Department of Health (DOH)—Department of Agriculture (DA) Administrative Order No. 01, Series of 2008.

—Mark Meruenas/KBK, GMA News