Online safety: Tips to protect your wallet and identity

'Tis the season: Both online shopping and identity theft peak during the holiday months, when more shoppers mean potentially more targets for identity thieves.

Fortunately, there are ways to protect your financial and personal information as you finish your holiday shopping.

Be mindful where you shop

Perhaps the best defense is simple common sense. Be mindful of what websites you use, and never share your credit card or personal information if you're not sure a website or purchase is legitimate.

"People need to be mindful of their security. That's the first step to protecting your information," said Pat Reilly, the president and CEO of Mauch Chunk Trust.

"When you're shopping online, the first step is to know the site that you're dealing with," he said. "You want to make sure that the site you're using is the site you intended to use."

If you're buying products from a major retailer, go directly to that retailer's website. Don't click on links in an email or another website, which might lead you to a fraudulent site that can allow others to steal your information. And never respond to emails that ask for personal or financial information.

It's not difficult for identity thieves to mimic the look of a retailer or bank's website and emails to fool consumers.

"So often time people respond to emails, or go to sites that they're not really familiar with. That's an opportunity for others to get your information if you're not paying attention," he said.

Always use a secure website when providing a credit card or personal information. When you're checking out, be sure the web address begins with "https," not "http." The "s" stands for secure. Most Internet browsers will also display a locked padlock symbol on secure websites.

Monitor your accounts

Despite your best efforts, it's still possible for your financial information to be stolen online or in a store through no fault of your own.

Numerous retailers have announced data breaches in the past year, but don't wait for a letter from your favorite retailer to tell you about fraud before you start scanning your financial statements.

"It's really important to monitor your transaction activity," said Reilly.

"Back in the day, you used to get paper statements. People used to look at their statements and balance them. But with electronic access available, I see fewer people taking the time to peruse their statements thoroughly. Keep a watchful eye on the activity on your account, and check it on a regular basis."

He noted that many banks and credit card companies also offer alerts if an unusual activity occurs on your account, which can help you notice any potential fraudulent activity sooner.

Most also allow you to set alerts for purchases above a certain dollar amount, or for purchases that occurred online or outside of the U.S.

If you suspect fraud

If you suspect your credit card information has been stolen or used fraudulently, contact your bank or credit card company immediately.

Individual company policies vary but the law is on consumers' side when it comes to fraud protection.

You cannot be held liable for most fraudulent activity that is reported within a reasonable time period although you'll likely experience a lot of inconvenience and lost time as you work to restore your identity and accounts.

"From a consumer standpoint, financial institutes will stand behind you and protect you from fraud," said Reilly. "If you suspect fraud, your financial assets are protected."