The world of commerce is undergoing a digital revolution, thanks to online shopping.
According to Statista, e-commerce revenue is growing at a staggering 13.88% annually, with Europe expected to have 564.4 million online shoppers by 2025.
In the UK alone, the e-commerce industry is booming, with revenue reaching $131.5 billion in 2023 and projected to hit $185.37 billion by 2028, according to the same research.
This surge in online shopping presents both opportunities and challenges. While consumers enjoy the convenience and selection of e-commerce, they also face an increased risk of fraud and cybercrime.
Here’s a look at some of the key trends in digital transactions and how users in the UK and worldwide can stay safe online:
Debt and Digital Spending
The European Commission suggests the 25-44 age group shops online the most. This makes sense since they are the generation that grew up with the internet. However, it’s important to be mindful of debt when shopping online.
With just a few clicks, consumers can accumulate significant debt without fully considering the financial implications of their purchases.
In the UK, total household debt reached a record high of £1.838 trillion at the beginning of 2024.
The ease of online transactions can lead to impulsive purchases, so it’s crucial to set budgets and stick to them.
Phishing on the Rise
Another problem we can find with the growth of e-commerce, is the increasing amount of hackers and scammers online trying to steal data from users.
For example, phishing attacks attempt to trick users into revealing personal information or clicking on malicious links.
According to reports, nearly half (43%) of successful attacks on organizations in 2023 used social engineering, with a large portion carried out through email and messaging apps.
How you can stay safe online
Are you worried about being hacked when you are shopping on the internet? Here are some tips to ensure safe and secure online transactions:
- Shop from reputable websites: Look for websites with HTTPS encryption and positive customer reviews.
- Beware of unsolicited emails and messages: Don’t click on links or attachments from unknown senders.
- Use strong passwords and enable two-factor authentication: This adds an extra layer of security to your accounts.
- Consider using prepaid cards: Prepaid cards like Paysafecard or Steam Gift Card can be a good option for online transactions as they limit spending and don’t require sharing bank details
Steam Gift Card is an example for gamers that shops online
You can find many variations of prepaid cards and gift cards on the market. For example, one that is very popular among gamers is the Steam Gift Card that allows buying games, softwares and other gadgets.
However, it is crucial to look for a reliable provider to guarantee your safety and avoid scams.
Prepaid cards offer several advantages for online shoppers:
Prepaid cards or gift cards offer several benefits for online shoppers when it comes to safety. Here are some examples:
Limited Exposure:
Prepaid cards are not directly linked to your bank account or credit line. They only have the amount of money you’ve loaded onto them. This limits potential losses if your card details are compromised during online transactions.
No Personal Information Exposure:
When you use a prepaid card, you’re not providing sensitive personal information like your bank account number or credit card details. This reduces the risk of identity theft or unauthorized access to your financial accounts.
Controlled Spending:
Prepaid cards allow you to set a specific amount of money for online purchases. Once you’ve spent that amount, you can’t spend any more until you reload the card.
This helps you stick to a budget, prevents overspending, and accumulating debts.
Separate Account:
Using a prepaid card for online shopping keeps your online transactions separate from your primary bank account. If your prepaid card is compromised, it won’t affect your main financial accounts.
Limited Fraud Liability:
Many prepaid cards offer protections against fraudulent transactions similar to those offered by traditional credit and debit cards. If your card is lost or stolen, you can usually report it and have the remaining balance transferred to a new card.
No Credit Check:
Unlike credit cards, prepaid cards typically don’t require a credit check to obtain. This makes them accessible to people who may not qualify for traditional credit cards or who prefer not to have a credit card linked to their online purchases.
Ease of Replacement:
If you lose your prepaid card, or someone stole it from you, it is easier to replace than a traditional credit card. You can often get a replacement card with the remaining balance transferred to it relatively quickly and without hassle.
Anonymity:
Some prepaid cards can be purchased and used without providing any personal information. This adds an extra layer of privacy for online shoppers concerned about their data being tracked or shared.
It is important to note that while browsing failed to find specific numbers on how many phishing cases occurred last year, it did reveal that the number is difficult to track due to constantly evolving tactics from attackers.
And don’t forget! Staying vigilant and informed is the key to safe and secure online transactions.
