6 tips for shopping safely online

By Bankrate.com

You've settled on the perfect gift for that special someone. On clearance from Bobsyouruncle45, the new laptop computer is going to cost you a mere $65. Getting your Visa card out of your wallet, you click over to the checkout page and get ready to seal this spectacular deal.

Not so fast.

If you don't know from whom you're buying, and are simply praying for good luck after sending your payment over the Web, you're setting yourself up -- and not just for losing money. You're risking your personal information, and it's time for a rude reality check.

It makes sense that security is not always a bedfellow of convenience. Open 24 hours a day from anywhere in the world, online shopping sites entice consumers with an array of come-ons such as free shipping, comparison pricing, bargain deals and extra security features. Saving gas and being able to shop on your own schedule adds more to the online shopping appeal.

Yet, the question remains for the leery: Can online shopping be done safely?

How safe is online shopping?

The Internet security experts we spoke with say "yes" -- on the condition that consumers abide by some basic safety tips.

Bigger names equal better protection. "Go with reputable companies you've heard of," says Jim Stickley, co-founder and vice president of engineering at TraceSecurity, a company that works with financial institutions to better their network security systems to deter identity thieves.

Stickley, who knows firsthand how easily sensitive information is stolen, says that if a deal sounds too good to be true -- say, $20 for that new iPod Nano -- it probably is. What's worse, it's probably an attempt to trick you into giving out personal information.

Steven Branigan, founder and president of CyanLine and author of "High-Tech Crimes Revealed : Cyberwar Stories from the Digital Front," agrees. He says that it's good to know the site you're going to, such as the bigger sites like Amazon.com. "These sites put their name on the line."

On the other hand, the fear factor hurts smaller merchants who might have better deals.

One comparison shopping site, buysafeshopping.com solves both problems by bonding qualified merchants for up to $25,000 with Liberty Mutual. BuySAFE puts merchants through a screening process to verify the merchant's identity, online sales experience and ability to deliver the purchased items. If a retailer passes that process, buySAFE is willing to stand behind them with their purse, says CEO and president, Jeff Grass.

When in doubt, check them out. If you go with an unknown merchant or Web site, contact someone there who can verify the company's privacy policy for you before you make a purchase. Ask if they'll send you a catalog. "If they don't list phone numbers and only have an e-mail address, that's a huge red flag," Stickley says. "Call the phone number and see if it goes to voice mail. Anyone can have voice mail set up."

Find a real person

Bottom line: If you can't get a human being on the phone or don't like what you're hearing, go shopping somewhere else.

Encryption doesn't equal security. Leah Ingram, author of "Gifts Anytime: How to Find the Perfect Present for Any Occasion," is a certified etiquette and protocol consultant. This expert gift-giver says one of the first things you should do before typing in your credit card information is look for the "plural URL." That is, when you go to the site's checkout page, the "http" in the URL should change to "https." A closed padlock or key should also appear on the page, letting you know your personal information will be encrypted or scrambled.

If you don't see either of these "locked" icons or a change in the URL, log out and shop elsewhere, says Ingram. The reason: "You can't be sure the site has a secure server, and you shouldn't take that risk," says Ingram.

Here's one tell-tale sign that you've entered a scammer's site: If you ever see numbers at the beginning of the URL, such as http://66.102.7.104@65465.51456%6AD%, it's probably a scam, says Stickley.

Still, even if you see a proof of encryption, such as the plural URL, you shouldn't equate that with the site's trustworthiness.

"It just means the session is encrypted," says Stickley. He likens the mistaken belief to believing that someone owns a house just because that person can lock the front door. It means nothing. To verify the site's trustworthiness, he advises calling the company and talking to them about their privacy policy.

Continued: Avoid shared computers

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