Safe Internet Shopping

Contrary to popular belief, you can shop safely on the Internet. Here are some tips on protecting yourself.

First, many banks and credit card companies now provide single-use credit card numbers (also called "virtual accounts") tied to your regular account but only for limited use. Log into your account on the company's site, request a virtual card number, and apply it to your online purchase. Numbers are only valid for either a single purchase or a single vendor, so even if someone manages to steal the card information, they won't be able to do anything with it. Just don't use a virtual account number to sign up for subscriptions, members, or anything else with recurring fees unless you're trying to take advantage of a special offer and don't want to have to remember to cancel before the renewal kicks in.

You can also set aside a card with a lower limit exclusively for online transactions. Such an account is no more secure than regular credit cards with higher limits, but the potential damage and hassle from an identity theft is much lower. Furthermore, if it's a low-balance card (which often have less favorable terms), you won't mind canceling the account as much if you run into trouble.

A word of caution: Never, ever use your debit card for an online purchase. You don't want to risk an identity thief getting the card number and draining your bank account. You may not be held liable, and you may get your money back, but can you do it before your next rent/mortgage/other bill must be paid?

Never shop over an unencrypted wireless connection, such as those found at coffee shops. It's much too easy for a hacker to capture your personal information in such a setting.

Always practice smart browsing. Check for the little yellow padlock displayed in the browser to indicate a secure connection before submitting your credit card number. Always have firewall, antivirus, and antispyware installed on your computer. (If you have a wireless home network and your computer never leaves the house, then you don't need firewall software. The firewall built into your network's router is more than enough.)

Finally, monitor your credit closely to catch any fraudulent activity as soon as possible. Read monthly statements carefully, check your credit reports annually at www.AnnualCreditReport.com, and immediately contact your financial institution if you see suspicious activity in your account.