Tips on financial transactions using internet

It is very important to protect you with online financial transactions. These tips would help you to be safe with online deals.

Check financial websites you intend to use carefully. Make sure that the address is correct. It should not consist of only numbers if it is a valid website.
Type in the web address yourself rather than clicking through on a link. This should help you avoid being diverted to sites that are convincing copies of legitimate ones.
Don’t be swayed into buying a product because the website looks professional.
Research before you sign up – there is no reason to commit yourself immediately.
Always read small print carefully, whether it is on a website, in an email or on paper.
Never give your bank details, credit card numbers or personal information, to someone you don't know or have not checked out. Emails asking for this information are known as phishing emails. Financial institutions will not contact you this way.
Do not believe everything you read on bulletin boards or forums. Anyone could be signing onto them, including crooks.
If you want to use an account aggregation site – which enables you to see all of your financial details through one portal – check out the provider before you sign up.
Always print out or save information, because you may not get a paper copy sent to you. For example, print off terms and conditions – you may find they have changed if you go back to the website later.
Before you submit forms online, check all options are correctly filled in as drop–down menus and radio buttons may have default options already selected which you might need to change. If possible, print out forms you've filled in to keep for your own records – you may need them if you have to complain or make a claim in the future.
For tips on how to stay safe online, visit the UK banking industry's Bank Safe Online website – see Related links.

The Metropolitan Police has a special Fraud Alert website, set up to assist in combating specific types of fraud, and to prevent you becoming a victim of crime – see Related links.

Security through technology

When you buy something online or complete sensitive information, make sure your details are secure. You can first ask the firm if a transaction will be encrypted, or look to the bottom right of your screen to see if there is a closed padlock, or other security symbol on your screen.

You should also use security software to protect your computer from viruses and hackers, but this must be kept up to date.

You can also help yourself by deleting spam emails from people you have not heard of before opening them, especially if they have attachments as they could carry electronic viruses that could crash your computer.

To reduce the amount of spam email you get, talk to the company that provides your email service, and see if it can help you with built-in protection.

Dealing in shares

Bulletin boards and chat rooms

Bulletin boards and chat rooms can be fun, but don't rely on the information you see on these sites. If you intend to buy shares:

Do your own research – look on the company's website, get hold of the annual report and read the financial press.
Be aware that a single person can easily create the illusion of widespread interest in a small, thinly–traded stock by posting a series of messages under various aliases.
Be suspicious of any invitation which claims to share so–called privileged information and urges you to act quickly to avoid missing out.
There is a fine line in share dealing between legitimate and illegitimate information – seek professional independent financial advice if you're not sure. Be aware that if you do act on information which later turns out to sit on the wrong side of this line, you could be committing a form of market abuse and end up being prosecuted in a court of law.
Fraudsters can only influence share prices if people actually respond to their tipping.

Know your rights when shopping online, see the Office of Fair Trading's (OFT) website – see Related links.

Thinking of becoming a day trader?

You may have heard or read about day trading. Many people in the United States have given up their jobs in order to become day traders. And now, increasingly, it's happening in the UK.

Don't rush to join them unless you fully understand the risks involved. You could seriously damage your wealth.

What is day trading?

It involves buying and selling shares on the same day with the aim of making a profit. Day traders rarely hold overnight positions.

Monitoring your portfolio online and using an online broker to place and execute orders is very different from the approach of a day trader. Day trading is a stressful, full–time job. It is always high risk.

Remember:

Day trading is rarely a quick or easy way to make money;
don't trade what you can't afford to lose; and
don't rush in without careful thought and preparation. Read and research as much as you can, check out relevant websites, bulletin boards and chatrooms. But don't believe all you see and hear, not all the information you access will necessarily be reliable.
Source: Using the internet
- To read more: Tips for staying safe online