With the economy in shambles, people are looking for ways to save money this holiday shopping season.

One of the more popular places consumers are going is online.

Thousands of online shoppers are expected to take advantage of companies’ Web specials throughout the holiday season.

MasterCard reports that nearly three out of four people plan to shop online for their holiday gifts and 26 percent of them will shop online more this year than they did last year. MasterCard predicts consumers plan to spend an average of $700 this holiday season, with nearly $300 of which will be spent online.

Barclays Capital forcasts that Internet sales will increase by nearly 10 percent over last year.

Online merchants are offering great deals this month and, not to mention, consumers save money on gas and time when they can find holiday gifts in the comfortable confines of their home. When you shop online, the long lines and agressive salespeople are avoided.

More than 80 percent of retailers’ Web sites offer free shipping, usually with minimum purchases, to online shoppers. Stores will let you order online and pick up your gifts at a store. In addition, online shopping often offers more selections, different products and hard-to-find sizes that are sold out in stores.

But along with the convenience and saving, online shopping has a scary side in the form of scams and identity theft. Scammers will be presenting can’t-beat online deals, but then, ultimately, won’t deliver the goods. Typing in your credit card number on the computer, leaves you prone to computer-hacking criminals, who will steal those numbers and go on a shopping spree of their own.

The Redmond Police Department provided these helpful tips when shopping online.

• Shop with companies you know – anyone can design an online shop. If you are not familiar with the merchant, ask for a paper catalog or research the company before any purchase.

• Pay attention to a company’s return and refund policy before making purchases

• Keep passwords private – never give your password to anyone and avoid using a birthday or portion of your social security number as a password.

• Use a secure browser. This is the software used to navigate the Internet. Browsers should comply with all industry security standards. These standards encrypt or scramble information you send over the Internet.

• Pay by credit card. If you do, your transaction is protected by the Fair Credit Billing Act. This law gives you the right to dispute charges under certain circumstances and temporarily withhold payment while the creditor investigates them.

There’s no question that Internet scams are hard to detect, so the ultimate tip is to trust your gut.

Offers on Web site can often sound too good to be true. You should always go with your instincts and don’t be afraid to pass up that bargin deal that might cost you big-time in the end.