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Crowds migrating from the aisles to the Web

Roger Fillion, Rocky Mountain News

Published November 24, 2006 at midnight

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All you shoppers who shun malls and like to point and click, get ready to join tens of millions of Web surfers who will buy their holiday gifts online.

Nov. 27, or Cyber Monday, marks the unofficial start of the online holiday-shopping season, when many consumers return to their offices from the Thanksgiving holiday and capitalize on broadband connections.

And experts predict that people will shell out more money via cyberspace than ever to buy toys, DVDs, clothes and other gifts this year despite lingering worries about identity theft, fraud and other issues.

Forrester Research predicts that online holiday sales will jump 23 percent over 2005 holiday sales, to $27 billion.

Why? Higher gas prices, the huge selection of products online and the convenience of Internet shopping.

"While consumers may downplay how much they plan to spend this holiday season, historical trends point to a different story" that suggests a "strong holiday season," Forrester analyst Sucharita Mulpuru wrote in a recent report.

Using different data, JupiterResearch predicts that online holiday retail sales will jump 18 percent, to $32 billion.

The research firm estimates that a record 114 million users will shop online, a 6 percent increase.

Denver-area net surfers are expected to be among those who will be busier than most.

The Denver area ranks No. 4 on the list of top online shopping cities in terms of how much money people plan to spend online this holiday season, according to a survey by AOL and the polling firm Zogby International.

It said the average Denver Web user plans to spend $558.84 on online purchases this holiday season.

New York Web surfers on average are expected to spend the most money - $1,483.36 - online, the survey reported.

Despite the rush to the Web, fraud, privacy, spam and other worries remain a concern.

Experts caution Web surfers against privacy-stealing programs known as spyware, as well as viruses that can wreak havoc on a person's computer.

Experts also warn against e- mails known as "phishing" scams that invite consumers to log on to a seemingly legitimate Web site and enter sensitive personal information such as a Social Security number. The Web site, in fact, isn't legitimate and allows the perpetrator to capture personal data.

David Perry, global director of education at Trend Micro Inc., a Cupertino, Calif.-based maker of computer-security software, advises wary Web surfers to window-shop online and then complete the actual purchase over the phone with the retailer.

In his own case, Perry uses a separate credit card for online transactions that has a $1,000 ceiling. "That limits the liability to $1,000," he said.

Jeff Grass, CEO of BuySafe Inc., a Virginia company that identifies reputable online merchants with a special seal, said shoppers also are concerned about online retailers' failing to follow through on transactions, particularly when it comes to smaller, independent online retailers."Really make sure you know who you're buying from," said Grass. "Look for clues or factors that can help you know they're a trusted and reliable merchant."

Online shopping tips

• Secure your personal computer beforehand and keep security software updated. Use anti-virus, anti-spyware and anti-spam software, as well as a firewall.

• Be wary of responding to e-mails asking for your password(s), Social Security number, birth date, credit card number or other personal information.

• Ensure that Web sites are truly secure before entering credit-card data. Look for a small lock icon on the browser's status bar, a Web-site URL that begins with "https" (the "s" stands for secure) and a trusted seal like those from VeriSign or TRUSTe.

• Review all credit-card bills closely to look for suspicious activity. Designate one credit card for online shopping.

• Create complex user names and passwords for credit-card accounts and when registering for e-commerce sites and other Internet accounts.

Sources: National Crime Prevention Council; Chief Marketing Officer Council; Electronic Retailing Association

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