5 Steps to Safe Online Shopping

At $200, the digital camera that you just found online makes for an amazing deal compared to a similar one you found at Circuit City or Best Buy. Searching those big Web sites prices are too high compares to products on smaller ones whose domain names you've never heard. Since you explored, you might have just saved a lot of money at incredible prices. Or at least you think you did. The Web site itself looks real and legit. Its check out pages has legal disclaimers and asks for the usual billing shipping information.

If you don't know who you're buying from, and simply hoping that after sending your payment over the Web, you set yourself up for failure. You're risking your personal information and losing money. Open 24 hours a day 7 days a week from anywhere in the world, online shopping sites entice consumers with an array of come-ons such as free shipping and handling, comparison pricing, bargain deals and security features. Shopping online can have its benefits by saving you time, money and gas.

But is it always safe to shop online? Here are some safety tips the next time you decide to shop online:

1. Popular and bigger names equal better protection.

Jim Stickley, the cofounder of CTO and vice president of engineering at Trace Security for better network security systems says, "Go with reputable companies you've heard of."

If products are at a bargain and the price sounds too good to be true, it probably is. It's probably an attempt to trick you into giving out personal information. At the same time the smaller merchants who actually are legit and have better deals are hurt by the fear factor of consumers.

2. Check them out when in doubt.

If you go to an unknown merchant or Web site, try to look for a telephone number or a way to contact someone who can verify the company's privacy policy for you before you make a purchase. If they don't have a toll-free number and just an email address, then that's a red flag. If you call and it goes to a voicemail, be aware, because anyone can have a voice mail set up. If you can't talk or get in touch with a human being, then the chance you're taking is huge and might as well shop somewhere else.

3. Sharing is a bad thing.

Shared computers, like the ones available to multiple strangers at computer rooms are a negative. The danger is that hackers can insert a key logger into the back of the keyboard, a device that looks like a harmless adapter. This device captures everything you type before it's encrypted. This software can be hard to detect. The best thing to do is avoid shared computers when typing sensitive information.

4. Pay with a credit card.

Now that you found a site that is trustworthy with a secure checkout page, what will you pay with? There are many ways to pay; check, money order, debit card, credit card, cash, or through other payment sites. Credit cards are the safest method for purchasing online. The reason for this is because most credit cards have protection on them. Debit cards usually don't and it pulls money right from your bank account. It can take months to get your money back, if you ever see it again.

The credit card is your money but also the creditors and it would hurt them the same way it will hurt you. If you have a problem with a transaction, the credit card company will do anything for you to resolve it. If for any reason you feel reluctant to give out your credit card number over the Internet, call your company and ask for a secure online account number service which is a virtual credit card or virtual account number. With this virtual number, your actual account number is never exposed to scammers.

5. Be suspicious of everything.

When you're at a checkout page and the site asks for your date of birth and Social Security number, be aware. This combination can give people enough information to start applying for new credit cards in your name. If this bothers you, then always call the company and ask questions. Never ever send out credit card information via e-mail or instant messaging because none are encrypted.

So is it safe to shop online? Experts offer a silver lining to the cautionary warnings against online identity theft and credit card fraud. People should always be aware as long as they are dealing with reputable companies and online transactions are far more secure than face-to-face transactions people do everyday. Online transactions eliminates the middle man, such as a waiter or bartender who processes your credit card payment, so there are less people who physically see your private information.