Protecting your money online
Despite online shopping becoming increasingly mainstream across the generational divide, some reluctance remains due to concerns about online security. Here are some tips for protecting yourself against identity theft and credit card fraud:
- Use strong passwords for online accounts
- Read the website’s privacy policy
- Always use a secure payment method
- Never send account details through email
- Print records of your online transactions
- Monitor your credit card statements
There is no doubt the way we shop and pay for things has changed drastically over the last decade. The cheque book once central to making purchases and managing our money is almost extinct and for the first time financial institutions are reporting online banking on mobile phones is now exceeding banking done on desktop computers.
With connectivity now standard in the home and so many of us armed with smart phones and tablets, Australians are increasingly embracing the immediacy and convenience of internet – replacing traditional banking and shopping with their online equivalents.
While the online sphere is often considered the domain of the young, research shows baby boomers are fast catching up – with growing numbers purchasing travel online and other popular items including books, food, wine, gifts and financial services. Australians aged 50-64 now represent 20% of all online traffic and spend 100 hours online a month, while 42% own a smart phone. According to NAB online shopping index, 41% of online purchases are made by people aged 45 + while 21% are over 55.
Even where a final purchase is made in-store mobile devices are increasingly used to check prices and explore the availability of goods.
The internet is also a great tool for dealing with service providers like Centrelink, health insurers, local councils and road traffic authorities. As demand grows these organisations are constantly improving their ability to process paperwork or accept payments online. According to BPAY, there has been a significant shift in the attitudes of consumers towards digital services. Up from 72% last year, 78% of Australian bill payers now receive bills or statements electronically.
As technological innovations make it increasingly easy for consumers to obtain their mail and pay bills electronically, this also creates some interesting investment questions. Recently Hamish Douglass, CEO of Magellan, an investment fund that many FMD Clients hold, spoke to FMD Advisers about investment trends internationally and how e-commerce giants like PayPal or even Australia Post with their digital mailbox (digitalmailbox.com. au) are beginning to challenge the dominance of traditional financial institutions for payment processing, which could be a game changer.
General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977. Rev Invest Pty Ltd is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977.