FAST FACTS: Online Shopping Safety Tips

(CBS4) -- Before you log on and let your fingers do the shopping, the American Bar Association's Safeshopping.org reminds everyone that there a number of safety rules to follow.

Make Sure The Website You Are Shopping On Is Secure

"Identity Theft" is a growing problem, so the look for a security feature that most sites offer that scrambles sensitive information, such as your credit card number, so that it can be read only by the merchant you are dealing with and your credit card issuer. This ensures that your payment information cannot be read by anyone else or changed along the way.

Look for the picture of the unbroken key or closed lock in your browser window. Either one indicates that the security is operative. A broken key or any open lock indicates it is not. 

• Look to see if the web address on the page that asks for your credit card information begins with "https:" instead of "http."

• Some web sites use the words "Secure Sockets Layer (SSL)" or a pop up box that says you are entering a secure area.

• These security protections do not work in e-mail so make sure you make your payment online though a secure site.

• Also, some online retailers have a phone in option which allows to place an order online, but pay for it with a credit card over the phone. If you do this, make a note of the phone number, company, the date and time of your call, and the name of the person who recorded your credit card number.

Passwords

Some online merchants use a password system to ensure that the buyer is legitimate and not someone misusing a computer or personal information.

If you use a password to log on to your network or computer, use a different password for orders. Some web sites may require you to create a password for future orders. You may want to create a special password for particularly sensitive sites.

When selecting a password, do not use your name, address, birth date, phone number, or easily recognizable words. Also, security experts suggest also not using your pet's name which might be guessed by someone who has other information about you.

Don't write down any password near your computer where someone could see it.

Do not respond to emails, phone calls, or letters from anyone asking for your password(s), social security number, birth date, bank account, credit card number, mother's maiden name, or other personal information.  Sellers and financial institutions do not ask you for such information unless you are entering into a transaction with them. Identity thieves make up emails that look remarkably like real websites.

To verify that the person contacting you really does work for the seller, call and request to speak to that person directly. You should only have to provide your password to get to your online account, and you should not give your credit card number except when you are actually placing an order.

Payment

The safest way to pay for an online purchase is with a credit card. It's safer than paying by check, cash, debit card, money order, cashier's check, certified check, teller's check, or cash on delivery (C.O.D.). If you have an unauthorized charge on your credit card, under federal law your liability is limited to $50. Moreover, some web site operators and credit card issuers (including all VISA and MasterCard issuers) promise that under certain circumstances they will even pay this amount for you.

Some credit card issuers grant you extended warranties or other advantages for purchases made with the card.

You have greater legal protection against your seller if the goods are defective and, in some cases, if your credit card number is used without your authorization. However, both MasterCard and VISA now promise zero liability for some unauthorized use of debit cards on the Internet.

It's also a good idea to double check the price before you finalize your order.  Consider carefully whether you may be paying too much for an item, particularly if you're bidding through an auction site. You may want to comparison shop, online or offline, before you buy. Make sure there are not extra shipping or handling costs.

Guard Against Identity Theft

The most common way in which thieves obtain your personal information: like you name, Social Security number, or credit card numbers is by stealing your purse or wallet. A growing trend to trick you out of your personal information, thieves will send sophisticated emails which appear to come from banks, insurance companies, internet service providers, auction sites, and other kinds of websites. These emails, which may even look like real emails of the company or its actual website, ask for your personal information in order to "verify" accounts or "clear up" errors that have occurred.

Legitimate businesses do not ask for social security numbers or bank account numbers on the Internet. Do not respond to such emails and do not click on any links they contain. If you wish to check with the company, type the address of the website into your own computer or telephone your question.

Identity thieves may use your information to open a new credit card account or to get a loan in your name. When they don't pay the bills, the delinquent account is reported on your credit report.

The law gives you specific rights when you believe you are the victim of identity theft, including the right to have nationwide credit reporting agencies place a fraud alert notice in your file, and the right to receive two free file disclosures per year. You can also block credit reporting and collection activity for fraudulent transactions that result from Identity Theft.