From food and jewelry to electronics and toys, everything is easily available through online shopping, which is becoming an increasingly attractive alternative to the long lines and busy parking lots at the local mall.  However, it can pose a risk to your identity.

More and more people are turning to the Internet to take care of their holiday purchases. This year's Cyber Monday was the busiest online-shopping day in U.S. history, with sales reaching $1.03 billion, up 16% from a year ago, according to comScore Inc.

Most home and renter policies provide coverage for theft of money or credit cards; however, the amount of coverage is limited. Some companies now include coverage for identity theft as part of their homeowners insurance policy. Check your policy to find out. Other companies sell it as a stand-alone policy or as an endorsement to a current homeowners or renters policy. This coverage provides reimbursement for the cost of restoring identity and repairing credit reports.  Normally, it covers expenses such as phone bills, lost wages, notary and certified mailing costs, and sometimes attorney fees.

Victims of identity theft are often left with lower credit scores and spend months or years trying to build it back up. They may have difficulty getting loans or even finding employment. Follow these tips this holiday season to protect your money:

Online shopping

• Use only authenticated websites to conduct business online. Before submitting personal or financial information through a website, check for the locked padlock image on your browser’s status bar or look for "https://" (rather than http://) in your browser window.  
• Be careful with your passwords. Use ‘strong’ passwords that contain both letters and numbers and change these passwords frequently.
• Be aware of phishing and pharming scams. In these scams, criminals use fake emails and websites to impersonate legitimate organizations. Exercise caution when opening emails and instant messages from unknown sources and never give out your personal or financial information via email.

Shopping at the Mall

• Monitor your accounts. Don’t rely on your credit card company or bank to alert you of suspicious activity. Carefully monitor your bank and credit card statements to make sure all transactions are accurate.
• Tear or shred any documents that have personal information such as credit card numbers, bank statements, charge receipts or credit card applications, before disposing of them.
• Keep the amount of personal information in your purse or wallet to the bare minimum. Avoid carrying additional credit cards, your social security card, check book or passport unless absolutely necessary.
• Guard your credit card when making purchases. Shield your hand when using ATM machines or making long distance phone calls with phone cards.
• Always take credit card or ATM receipts. Don’t throw receipts into public trash containers or leave them on the counter. 

Click here for more information on protecting yourself from identity theft.

Information from Insurance Information Institute.