12 Tips for Safe Online Shopping

The most obvious way to identify a safe site is to look for an "https" URL, as opposed to a simple "http" URL. That extra "S" indicates security, meaning digital transmissions from the site are being encrypted.

Security providers like VeriSign and McAfee indicate a site is protected by a specific company. Verify the seal's legitimacy by clicking on it. A live link should take you to the security-service's verification page. Security seals, however, are just a starting point, not a guarantee. Nor does the lack of a seal mean a site is necessarily risky.

Shady sites can use encryption so also check the address bar for a bit of green or the site-owner's name written in green. The green indicates the site has been vetted, belongs to a legitimate company and isn't a phishing site. You will certainly see green on larger e-commerce sites and on bank sites. Recent versions of major browsers all use green in some way to indicate the existence of another layer of security known as an "extended validation SSL certificate."

None of this encryption will help you if your computer is infected with keylogger malware. This scam downloads software without your permission that captures your keystrokes and screen images and sends them to hackers. Your only real line of defense is to use qualified security software and regularly install all recommended updates.

Based on the term kidnapping, tab napping refers to stealing your banking information and preys upon those who open lots of tabs on their browser at the same time.

Store the login and personal data used in Web forms in an encrypted place on your computer with password management software. You can then safely enter this sensitive data onto Web site forms without retyping it each time.

For extra protection, consider using one-time credit card numbers that you can often set up with your card provider. WalletPop explains in more detail how this works.

Under the Truth in Lending Act, your maximum liability for unauthorized use of your credit card is only $50. Use your card for online purchases and your liability is a big, fat zero. Report fraud quickly and banks typically will rapidly reverse the charges. In these tight times, however, banks are scrutinizing fraud claims more closely so make sure you have all the details before calling.

Debit cards are a bit riskier as these transactions draw directly from your bank account and are subject to a different federal law. The Electronic Fund Transfer Act provides considerable protection from liability, but the level of protection diminishes as time passes. Happily, most debit cards also can be used as credit cards, providing you with more protection.

PayPal, Google Checkout and BillMeLater offer some useful additional security because you entrust your sensitive account information to just one company -- not to every online store you patronize. This is particularly useful if you frequently buy from eBay, Etsy.com or little-known merchants that likely don't have top-notch Web defenses.