DOJ warns public on online shopping fraud

MANILA, Philippines - The Department of Justice (DOJ) warned the public against online fraud amid the increasing use of online transactions.

In a 15-page advisory dated April 29, 2015, the department said "risks, trade malpractices, and operational challenges exist in online shopping in view of the anonymity being offered by the internet."

"This advisory is issued to inform online shoppers of the risks involved in dealing online, as well as to guide online shopping providers in providing a safe and secure online shopping environment, in the promotion of consumer welfare."

"It is the policy of the state to protect the interests of the consumer, promote his general welfare, and guard against against deceptive or unfair business practices, as it recognizes the vital role of information and communications technology, and the importance of an online environment conducive to social and economic development," the advisory read.

The DOJ said the public must be able to protect themselves against the following when shopping online:

- frauds and scams;
- misleading or deceptive product advertisements;
- difficulty in returns and replacements;
- unexpected Customs dues, transaction costs, and surcharges;
- privacy breaches and abuse of user information; and
- chaotic delivery procedures.

Consumers must be cautious of the following "red flags" of online shopping fraud, the DOJ said. These include the following:

- products are advertised at very low prices compared to other websites;
- 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; and
- websites with limited or not information about privacy and their terms and conditions of use.

The DOJ enumerated the following "deceptive sales practices" employed by unscrupulous individuals or entities online:

- a consumer product or service has the sponsorship, approval, performance, characteristics, ingredients, accessories, uses, or benefits it does not have;
- a consumer product or service is of a particular standard, quality, grade, style, or model when in fact it is not;
- a consumer product is a new, original or unused, when in fact, it is in a deteriorated, altered, reconditioned, reclaimed or second-hand state;
- a consumer product or service can be supplied in a quantity greater than the supplier intends;
- a specific advantage of a consumer product exists when in fact it does not; and
- the sales act or practice involves or does not involve a warranty, a disclaimer of warranties, particular warranty terms or other rights, remedies or obligations if the indication is false.

To prevent fraud online, the following must be properly identified and provided for by online sellers and traders:

-Department of Trade and Industry (DTI) and/or Securities and Exchange Commission (SEC) registration;
-name of the owner/proprietor of the retail establishment in case of single proprietorship, and names of directors and other officers in case of a corporation;
-principal address of the retailer, seller, distributor, supplier or manufacturer, and, when applicable, of offices of agents in the Philippines;
-website, email address or other electronic means of contact, telephone and fax numbers; any relevant local or foreign government registration/license numbers such as but not limited to the local government unit's permit to operate, taxpayers identification number (TIN), when applicable;
-contact details about any business association or organization membership, when applicable; and representative agent(s) in the Philippines for purposes of summons.

The DOJ advised the public to protect their computers by installing security software (anti-virus) and update their anti-spyware.

The public is also advised to exercise caution when using public computers for online purchases. It will also greatly help to do research on the background of suppliers and sellers, including customer feedback on these suppliers.

As for passwords, it is recommended that strong passwords are used in setting up online accounts. Online purchases must also be recorded, and bank, credit casrd, and store card statements constantly checked for unusual transactions.

The DOJ identified the following laws and issuances applicable in the case of online fraud: the Cybercrime Prevention Act of 2012 (Republic Act No. 10175), Consumer Act of the Philippines (RA No. 7394), Electronic Commerce Act of 2000 (RA No. 8792), and Administrative Order No. 01, Series of 2008, of the DTI, Department of Health (DOH), of Department of Agriculture (DA).

source: www.abs-cbnnews.com

US unveils plan to make online transactions safer

WASHINGTON – In the murky world of the Internet, how do you ever really know who you're talking to, who you're buying from or if your bank can actually tell it's you when you log in to pay a bill?

Amid growing instances of identity theft, bank account breaches and sophisticated Internet scams, the government is looking for ways to make those transactions in cyberspace more secure.

But officials must tread carefully, as efforts to create identity cards, personal certificates or other systems of identifiers raise privacy worries and fears of Big Brother tracking its citizens online.

In a draft plan released Friday, the White House laid out an argument for a yet-undeveloped, voluntary identification system and set up a website to gather input from experts and everyday Internet users on how it should be structured.

The website was already getting votes, snipes and suggestions Friday afternoon — underscoring the incendiary nature of any discussion of Internet regulation or formal structure.

"The technology that has brought many benefits to our society and has empowered us to do so much has also empowered those who are driven to cause harm," said White House cyber coordinator Howard Schmidt in a blog posting Friday outlining the need for better security online.

The plan, he said, envisions a future in which people would be able to get a secure identifier — such as a smart identity card or a digital certificate — from a variety of service providers. Customers could then use the card or identifier to prove who they are as they make their online transactions.

"Digital authentication has been the holy grail of Internet security policy since the early '90s," said James Lewis, cyber security expert and senior fellow at the Washington-based Center for Strategic and International Studies. This latest effort, he said, has a better chance of succeeding than previous tries, "but we need to see how much opposition it runs into and whether people will actually use it even if it gets deployed."

Ari Schwartz, vice president at the Center for Democracy and Technology, said the unfettered openness of the Internet is what allowed it to grow and prosper but also created security gaps that need to be addressed. But any move to improve identity systems raises many concerns.

"The whole thing is very difficult to do and privacy is one of the more difficult pieces of it," said Schwartz, adding that the system has to balance efforts to maintain privacy while still finding out enough about someone to ensure his identity.

The government, he said, is correct to try to plan ways to move toward better security, rather than letting it just happen with no coordination.

But cyber security experts also argued that the technologies for creating such identifiers already exist and are already used in different ways by businesses, particularly banks.

"The vision they put forth is already realized and commercially available," said Roger Thornton, a cyber security expert and chief technology officer for California-based Fortify Software.

He noted that banks already use sophisticated fingerprinting processes to identify a customer who signs in. The system knows if a customer is using a different computer and will often require additional identification if that computer has not been used for the banking website before.

But many companies don't bother with the more expensive or complex identification systems.

So, said Thornton, "the opportunity is there to make things more interoperable and more uniform."

The draft plan is part of an administration effort to promote cyber security both within the government and among society as a whole. Lawmakers have introduced a number of bills aimed at furthering those goals, and the White House plan was met with initial support from one of the authors of Senate computer security legislation. —AP

Source: gmanews.tv