Am I covered for online credit card fraud?

You should be covered for online card fraud as long as any mischief that befalls you is not due to your personal negligence. Under Payment Services Regulations, and the Consumer Credit Act you will not be liable for losses resulting from internet fraud relating to a debit or credit card unless you have acted fraudulently or negligently.

Customers are advised to use up-to-date anti-virus and spyware software and a personal firewall on their computers. That sounds clear enough - if you are planning to engage in online commerce, you really should be taking steps to make sure your PC is virus-free and that passwords are not being hacked the moment you type them.

But not even the best anti-viral software will provide 100% protection. The danger is that, sooner or later, one of our financial institutions will try to argue that the fact that someone was defrauded is proof they weren’t being careful enough.

In the meantime, do all you can to minimise the risk. Don’t write passwords down. Don’t use the same password for low-level, friendly sites as you do for high-level important transactions. Never give away your PIN or send it out over the net.

Limit your dealings, as far as possible, to reputable sellers and sites that have been recommended to you.

Make sure you are dealing with the website you mean to deal with. Never go to sites by clicking links in unsolicited emails - type the link directly into your browser. A reputable company will not send out emails trying to solicit card details from you, any more than they will phone you up and start quizzing you about your passwords.

Where possible, only buy from secure websites. A secure site typically displays a locked padlock or unbroken key symbol in your browser. The web address will also start with https, instead of the more familiar http.

Trust your instincts - if something smells fishy, there’s a good chance it is. Offers too good to be true, often are.

Hold on to details of your order. Print out the order page, as well as copies of the retailer’s terms and conditions, plus any other details you may need.

Finally, if you find yourself making frequent purchases online, consider setting up a card that is for online use only.

If the worst happens and you think your security may have been compromised, close all online accounts immediately, cancel all affected cards and report the matter to the relevant banks and card issuers. Talk to credit bureaus such as Experian and Equifax, asking them to place a note on your record.

Better to be proactive than do the ostrich thing and wait for the consequences of your bad luck – or carelessness - to catch up with you.