How To Protect Yourself When Doing Business Online

Doing business online can be convenient and efficient. Similarly, buying a business through online channels, like DealStream, can be an expedient and effective way to acquire a company. However, carrying out any financial transaction online comes with some risk. The higher the monetary exchange, the greater the risk. From fraud to data breaches and everything in between, there are several threats you should be aware of when conducting any business online or using online channels for financial exchanges.

Here are some tips on protecting yourself before any money changes digital hands.

When Conducting Any Business Online

1. Use Strong Passwords: 

Choosing strong passwords is one of the simplest and most effective ways to protect your online accounts. You should always choose a password at least 12 characters long and includes a mix of letters, numbers, and symbols. Avoid using common words or phrases like your name, birthdate, "password," or "123456." Be on the lookout for notifications of data breaches from online sites. If you have an account with a site that's been hacked, immediately change your password and double-check all security features for that site and any site you've set up using a similar password. Consider using passphrases that combine unrelated words for even stronger security. Also, look into passwordless authentication methods, like biometrics (fingerprint, iris, face scans) or:

Magic Links: Users receive a one-time-use link in their email, which, when clicked, logs them into the application or website without requiring a password.

One-Time Passcodes (OTP): Delivered via SMS, email, or authenticator apps, OTPs provide a single-use numerical code for authentication.

Push Notifications: A push notification is sent to a registered device where the user can simply approve the login attempt to authenticate.

QR Code Scanning: The user scans a QR code displayed on the login screen with a mobile app to authenticate.

Hardware Security Keys: Physical devices like YubiKeys or Google's Titan Security Keys are used for authentication. Users plug them into their computers or tap them on their mobile devices for secure access.

Behavioral Biometrics: Systems analyze patterns like typing speed, mouse movement, or even the way a user holds their device to verify identity.

Device-Based Authentication: Trusted devices are registered for authentication, and users are logged in automatically when accessing from those devices.

Token-Based Authentication: Digital tokens, often delivered through apps or browser extensions, authenticate users without requiring a password.

2. Keep Your Software Up to Date 

Keeping your software updated is essential for protecting your computer and data from security threats. It's important to install updates for your operating system, web browser, antivirus software, and other programs as soon as they become available. Most devices allow you to enable automatic updates and set a specific time of day for those updates to occur. Setting up those permissions and periodically performing a manual check for updates is worth your time. Pay extra attention to updates for Internet of Things (IoT) devices like smart home systems, which are becoming a target for cybercriminals. IoT devices often have unique vulnerabilities due to outdated firmware or weak default passwords. Regularly checking for firmware updates and changing default settings can help secure these devices. Securely save all information and update links for any smart home devices, and be sure to save warranty information in a safe location.  

3. Use Secure Connections 

When doing business online, always make sure you are using a secure connection. Look for the "https" in the web address, indicating that the site uses a secure protocol. Avoid using public Wi-Fi for any sensitive transactions, as these networks may not be secure. Never input credit card, banking, or any other personally identifying information when using a public Wi-Fi network. If you must use public Wi-Fi, consider using a trusted virtual private network (VPN) to encrypt your connection. A VPN creates a secure, encrypted "tunnel" between your device and the internet, masking your IP address and protecting your data from others using public networks. Two of the most popular and trusted VPN providers are NordVPN and ExpressVPN.

NordVPN is independently audited, has high-speed servers in over 60 countries, and boasts advanced malware protection features. They're also known for user-friendly apps and a wide range of device compatibility.

ExpressVPN offers military-grade encryption, a kill switch, and TrustedServer technology (RAM-only servers for enhanced privacy). The company  conducts regular independent audits and has a long-standing reputation for reliability.

4. Use Two-Factor Authentication

Two-factor authentication adds extra security to your online accounts by requiring a second verification form, such as a code sent to your phone or email. Setting up two-factor authentication can seem like a hassle, but it's much less of a hassle than changing multiple passwords, canceling bank cards, and dealing with identity theft. For added protection, enable two-factor authentication on all your devices and online accounts. Here, again, biometric verification methods, such as facial recognition, fingerprint scanning, and iris scanning, are becoming more common and can add an additional layer of security.

5. Be Careful When Clicking Links 

Phishing scams are a common way for cybercriminals to steal personal and financial information. Be careful when clicking links in emails, social media messages, or other online communications — verify the sender and the URL before clicking anything. You can do this by hovering your cursor over the link address before clicking. Be sure the name in the link is a verifiable company or website by opening a new tab and typing in the address rather than clicking on the link. Be on the lookout for scammers pretending to be legitimate businesses or imitating legitimate websites. Be cautious of AI-generated phishing emails, which are increasingly sophisticated and harder to spot. These emails often use advanced language models to create personalized, believable messages tailored to the recipient, making it crucial to carefully scrutinize unexpected or urgent requests.

6. Monitor Your Accounts

Regularly monitor your online accounts for suspicious activity. Check your bank and credit card statements for unauthorized charges and periodically review your credit reports for any errors or fraudulent activity. Use automated financial monitoring tools or apps, such as Mint, You Need A Budget (YNAB), or Privacy.com, which alert you to unusual transactions in real time and help you track spending patterns for better oversight.

7. Use Trusted Websites and Vendors

When doing business online, only use trusted websites and vendors. Legitimate e-commerce sites will often have verification seals or be certified secure by trusted organizations. Similarly, look for established, trusted payment methods like PayPal that have their own fraud prevention layers built into every transaction and carry buyer protection guarantees. Verify websites through platforms like ScamAdviser or Scam Detector to ensure their legitimacy before entering any financial information.

8. Educate Yourself on Common Scams 

Stay updated on the latest scams, such as AI-powered phishing and fake tech support schemes. Use resources like the Federal Trade Commission's (FTC) Consumer Advice blog and scam forums like ScamAdviser or the Better Business Bureau’s ScamTracker. Join online communities or forums like r/scams on Reddit to stay informed about the latest fraud tactics.

Additional Tips When Buying Businesses Through Online Channels

Before preparing to use an online marketplace to sell or acquire a business, you should ensure the successful completion of all the above steps. In addition to those eight steps, here are five more tips specific to online safety when buying a business through an online marketplace like DealStream.

1. Do Your Due Diligence on the Business and the Listing Site: Before buying a business in any marketplace, you need to perform careful due diligence by conducting thorough research on the seller, company, and industry. When using an online listing site or other online marketplace, you also need to perform due diligence on the website hosting the sale. Legitimate websites will have a clean, professional "Home" page, an "About" page with clear company information, and transparent safety and data protection protocols. After determining the legitimacy and professionalism of the website, review the site’s internal commitment to safety, reviews, ratings and any red flags that may indicate the business is not legitimate or trustworthy.

2. Use Online Tools: There are several external online tools that you can use to verify a seller's identity or check a website’s safety. Services like Intelius, Spokeo, and Lookify can help confirm whether the seller or their business is legitimate. You can leverage ScamAdviser's verification tools to check a website's safety rating before proceeding.

3. Use a Secure Payment Method: Use a secure payment method, such as a wire transfer or an escrow service, to protect your funds. Avoid using cash or other untraceable payment methods. Cryptocurrency transactions are on the rise. If you plan to engage with the crypto market in any way, be sure to use wallets with robust security measures and only transact with verified parties.

4. Get a Written Agreement: Have a written contract in hard-copy form that outlines the terms of the sale, including the price, payment terms, and any contingencies. Don't rely on shared documents or storage methods that others have access to. Consider using digital contracts with blockchain verification for added security and traceability.

5. Consider Hiring a Third-Party Verification Service: For very large purchases, consider hiring a third-party verification service to conduct background checks and verify financial information. Some verification services now use AI to provide faster, more detailed reports on sellers and their businesses.

In Conclusion

Protecting yourself anytime you do business online involves using a combination of personal responsibility, research, and following best practices. Take the time to monitor your online accounts and use trusted resources for secure transactions. By following these tips, you can minimize risks and feel more confident doing business online.