Is it safe to buy goods through online platforms?

Online shopping has become a normal part of life for Calgary residents, especially after the COVID-19 pandemic, when many people tried ordering goods online for the first time. E-commerce in Canada is booming, but with convenience come new security challenges. In 2024, Canadians reported over $638 million in losses from various types of fraud, a significant portion of which was related to online shopping. At the same time, a TransUnion study shows that 56% of Canadians were targeted by fraudsters in the second half of 2024, with 39% of respondents citing concerns about fraud as the main reason for not shopping online.

Modern e-commerce fraud schemes are becoming increasingly sophisticated thanks to artificial intelligence and improved deception technologies. Whereas fake emails from online stores used to be easily recognizable due to grammatical errors or suspicious appearance, today's fraudsters create near-perfect copies of official websites and emails. The Alberta RCMP reports an increase in credit card fraud during the holiday season, when people are actively shopping online.

Current state of e-commerce security in Canada

The Canadian e-commerce market is regulated by a comprehensive system of laws and standards designed to protect consumers. The Personal Information Protection and Electronic Documents Act (PIPEDA) establishes strict rules for the collection, use, and disclosure of personal information by commercial organizations. Enacted in 2000, this law was specifically designed to increase consumer confidence in e-commerce and demonstrate to the European Union an adequate level of personal data protection.

Under PIPEDA, all private companies engaged in commercial activities in Canada must adhere to ten principles of fair information practices:

  • accountability
  • purpose
  • consent
  • collection limitation
  • use and disclosure limitation
  • accuracy
  • security
  • openness
  • individual access
  • challenge

These principles provide the legal basis for protecting consumer rights in the online environment.

Statistics paint a mixed picture. On the one hand, the rate of suspected digital fraud in Canadian e-transactions was 2.6% during Cyber Five (from American Thanksgiving to Cyber Monday) in 2024, which is 51% higher than in 2023. On the other hand, this is still significantly lower than the global rate of 4.6%. Canada accounts for only 3% of global card fraud losses with 2% of global transactions, indicating a relatively high level of security.

Technical aspects of online shopping security

Modern security technologies have significantly improved the safety of online shopping. Most legitimate Canadian e-stores use SSL certificates and HTTPS encryption to protect data during transmission. Browsers such as Chrome, Firefox, and Safari automatically warn users about unsafe sites without encryption, and over 85% of shoppers avoid such sites.

Payment systems in Canada comply with the strict PCI DSS (Payment Card Industry Data Security Standard), which sets minimum security requirements for organizations that store, process, or transmit payment card data. Major Canadian banks and payment processors such as Moneris, Chase Paymentech, and Global Payments invest millions of dollars in real-time fraud detection systems.

Contactless and mobile payments, including Apple Pay, Google Pay, and Interac Debit, add an extra layer of security through tokenization. Instead of transmitting actual card numbers, these systems generate unique, one-time codes for each transaction. Even if these codes are intercepted, they become unusable for reuse.

3D Secure Authentication (3DS) systems, including Visa Secure and Mastercard Identity Check, require additional authentication through the buyer's bank. This may include entering a password, a one-time code sent to a phone, or biometric verification. While this adds another step to the purchase process, it significantly reduces the risk of unauthorized transactions.

Legal protection for consumers when shopping online

Canada has one of the most developed consumer protection systems in the digital space among countries worldwide. Each province has its own Electronic Commerce Act, which regulates electronic transactions, as well as a Consumer Protection Act, which establishes the rights of buyers. In Alberta, where Calgary is located, the Electronic Transactions Act and Fair Trading Act give consumers specific rights when shopping online.

If you made a purchase with a credit card and did not receive the goods or received goods that do not match the description, you are entitled to a chargeback — a refund through your bank. Visa, Mastercard, and American Express have zero liability policies that protect consumers from unauthorized transactions. Banks are required to review complaints within a specified time frame and refund the money if fraud is confirmed.

For international purchases through Canadian platforms such as Amazon.ca or eBay.ca, additional guarantees apply. Canada Post and other postal services offer parcel insurance, and most major platforms have their own buyer protection programs. The Amazon A-to-Z Guarantee and eBay Money Back Guarantee cover cases where the item is not delivered or differs significantly from the description.

Health Canada has specific requirements for the online sale of consumer goods and cosmetics. Buyers can check whether an item has been recalled through the recalls and safety alerts database, especially for items from third-party sellers or from abroad. Items from other countries may not meet Canadian safety standards, so it is important to check the origin of the item before purchasing.

Risks and threats of online shopping

Despite all the security measures, online shopping still carries certain risks. The most common types of fraud in Canadian e-commerce are:

  • New account fraud (using stolen personal data to open new credit cards)
  • existing account fraud (unauthorized use of a valid card)
  • Card-Not-Present (CNP) fraud, where the card is not physically present during the transaction

Phishing attacks are becoming increasingly sophisticated. Fraudsters create emails and SMS messages that look like official communications from popular platforms such as Amazon, Best Buy, or Canadian Tire. Particularly dangerous are package tracking messages, which have become more common due to the Canada Post strike. These messages contain links that lead to fake websites designed to steal logins and passwords.

QR code fraud is also gaining popularity. Criminals send fake QR codes to “accept” electronic transfers, which actually redirect victims to fraudulent websites to enter their banking information. Remember that legitimate Interac e-Transfer electronic transfers only come from @payments.interac.ca addresses, and any other addresses should be viewed with suspicion.

The risks are particularly high when purchasing from third-party sellers on marketplace platforms. These sellers can be located anywhere in the world and are subject to the seller's policies, not the platform's. It is important to check the “Sold by” information in the product description and understand the difference between products sold directly by the platform and products from independent sellers.

Best practices for safe online shopping

For maximum protection when shopping online, you should follow a few key principles:

Choosing platforms and checking URLs

First, only buy from trusted platforms and official brand websites. Avoid clicking on links in emails or SMS messages — it's better to enter the website address directly into your browser. Check URLs for correct spelling and HTTPS encryption (green lock in the browser).

Secure payment methods

Use secure payment methods. Credit cards offer better protection than debit cards thanks to chargeback and zero liability policies. PayPal and other digital wallets add an extra layer of protection by not revealing your bank details directly to the seller. Avoid bank transfers, Western Union, or MoneyGram for online purchases—these methods are difficult to reverse in case of fraud.

Network security

Never make purchases over public Wi-Fi. Networks in cafes, shopping malls, or airports may be compromised, allowing hackers to intercept your data. If you need to make a purchase away from home, use mobile internet or a reliable VPN.

Passwords and authentication

Create unique, complex passwords for each platform and use a password manager to store them. Enable two-factor authentication wherever possible, preferring authenticator apps over SMS, which can be intercepted.

Verifying the legitimacy of online stores

Always research the seller's reputation before making a purchase. Look for customer reviews on independent platforms such as Trustpilot, Google Reviews, or Better Business Bureau. Be wary of overly positive reviews, which may be fake, especially if they were all written within a short period of time.

Check the store's contact information. Legitimate businesses have a physical address, phone number, and customer support. Call the number provided to make sure it is valid. Be wary of stores that only provide a feedback form or email address.

Use reverse image search to verify product photos. Scammers often steal images from legitimate websites. Upload the product image to Google Images or TinEye to see if it is used on other websites.

Check the return policy and terms of service. Legitimate stores have clear, understandable return and exchange policies. Be wary of sites that have overly strict terms or no return policy at all.

What to do if you encounter problems

If you suspect that you have been the victim of online fraud, you need to act quickly. Contact your bank or credit card company immediately to block your account and dispute any suspicious transactions. Major Canadian banks have 24-hour fraud reporting lines:

  • TD — 1-866-222-3456
  • RBC — 1-800-769-2511
  • BMO — 1-877-225-5266

File a complaint with the platform where you made your purchase. Amazon, eBay, and other major marketplaces have complaint procedures and may refund your money or help resolve the dispute. Many platforms also block suspicious sellers based on user complaints.

Report the incident to the Calgary Police Service at 403-266-1234 and to the Canadian Anti-Fraud Centre online or at 1-888-495-8501. Even if you haven't lost money, your report can help prevent others from being scammed and contribute to the investigation of organized crime schemes.

Contact credit bureaus (Equifax Canada at 1-800-465-7166, TransUnion Canada) to place a fraud alert on your credit report. This will prevent new accounts from being opened in your name without additional verification.

The Future of Online Security in Calgary

E-commerce security technologies continue to evolve. Artificial intelligence and machine learning are increasingly being used to detect suspicious transactions in real time. Banks and payment processors are investing in biometric authentication, behavioral analytics, and anomaly detection systems.

The Canadian government is working to update its personal data protection legislation. The proposed Consumer Privacy Protection Act (CPPA) will replace PIPEDA and give consumers more rights over their personal data, including the right to delete and transfer their data. This is particularly important for e-commerce, where vast amounts of personal information about consumers is collected.

Educational programs such as the Canadian government's Get Cyber Safe and Safer Internet Day initiatives help raise public awareness about online safety. These programs are especially important for seniors and youth, who may be more vulnerable to online scams.

Conclusion

Online shopping in Calgary can be relatively safe as long as you follow basic safety rules and use trusted platforms. Canada's consumer protection system, including PIPEDA, provincial e-commerce laws, and bank protection policies, provides a solid foundation for safe online shopping. Statistics show that Canada has a lower rate of e-fraud compared to global rates, demonstrating the effectiveness of existing safeguards.

However, consumers should not rely solely on technical safeguards and legal regulations. Personal vigilance, education about current threats, and adherence to best security practices remain the most important factors for successful and secure online shopping. As fraud schemes become more sophisticated, it is important to stay up to date on new types of threats and how to protect against them.

Remember: while online shopping carries certain risks, millions of Canadians shop safely online every day. The key to success is a smart approach, using trusted platforms, secure payment methods, and responding quickly if problems arise. With the right approach, the benefits of online shopping—convenience, wide selection, and often better prices—far outweigh the potential risks.