Shop Secure Sites

How can you tell if the website you've chosen will protect your privacy while online? Reputable merchants will use encryption technology to transfer all financial information you send. Encryption software encodes data to prevent thieves from stealing private information in transit. Only those with a special key on the receiving end will be able to decode and access the data.

The most common type used is SSL, or Secure Sockets Layer. When Internet Explorer® or Netscape NavigatorT browsers detect this security software in use, an "s" will follow the protocol HTTP in your address bar so that it reads: HTTPS. The S indicates a secure connection. A small padlock or key icon will appear at the bottom of your screen also, depending on your browser. By clicking on this icon you can view detailed security credentials from the certificate issuer.

Be Aware of Website Registration

In order for the SSL to work, website owners that cater to the general public license their sites yearly to receive a certificate of authenticity—proof that they are who they say they are, much like your driver's license serves as your legal identification. If your browser delivers a security warning that the website you are visiting does not have a security certificate, or that the certificate has been revoked or is out of date, be wary. But also be familiar with who is issuing the certificate. There are several reputable certifying authorities, most notably VeriSign®. Check the logo on the website that reveals who grants the certificate.

Recognize Secure Web Pages

Entire websites aren't usually secure. Most bank or credit card sites, for example, have home pages filled with general information about their services that are accessible by anyone. Due to the slower speeds of encrypted transmissions, securing an entire site is impractical. When you want to access your own financial data at the bank, however, you must "log in," or enter an account number and password in order to move to the secure parts of the site.

Online merchants are the same. While browsing a company's picture catalog you move through unsecured web pages but when you go to the checkout area you'll be notified of the transition to a secure page. If you are not being notified when moving between secure and insecure pages online and want to be, check your browser's security preferences.

Use Credit Cards

Never use a casher's check to pay, and never wire money to a merchant—you have no recourse if the deal goes bad. Also, don't buy into the common misconception that debit cards and personal checks (even electronic versions of your personal checks) are wise to use for online buys—both leave your checking account vulnerable. Instead, use credit cards for online purchases. Under the Fair Credit Billing Act you have the right to fight charges you dispute on your credit card, and during an ensuing investigation you won't be required to make payments on the disputed charges. If the investigators determine that someone has fraudulently used your credit card, you are only responsible for the first $50 in charges. Many credit card companies offer additional protection perks, too.

Consider Disposable Credit Cards, Pre-Paid Cards or Payment Services

For those few who have not picked up the credit card habit, a pre-paid credit card may be your best fit. These look and act just like credit cards, only you foot the bill up front. A thief can't spend more than your chosen, pre-paid limit. And pre-paid cards offer the additional benefit of preventing debt.

Some issuers, like Greendot, sell temporary cards at popular retail outlets that can be instantly activated over the telephone or online.