Internet Safety Tips for 2010

RECOMMENDED SOFTWARE

Backup any files you don't want to lose to CD, DVD, or flash drives
Apply Windows and Office Updates as soon as possible - Turn Automatic Updates on (use Microsoft update for both environments)
Update all Software products periodically on your system
Run virus scan scans periodically (weekly)
Run anti-spyware scans periodically
Clean up your recycle bin, temp areas, etc.
Use UAC in Vista and prompt warnings in other Operating Systems
Authenticate and register your version of Windows (including WGA checks)
Read the EULAs in any software being installed
Create a protected account (aka limited account in Vista or XP)
Avoid entering sensitive information or performing e-commerce on a shared public PC in a cafe, hotel lobby, or library
Avoid P2P File sharing sites for "free" music or videos
Ensure you are using a trusted website and secure servers for e-commerce
Use complex passwords of 8 characters or more (at least 1 letter and 1 number, plus 1 upper/lower case -- and special characters if desired)
Change your passwords periodically
Protect your privacy - Never share your IRD, bank account, credit card, or other sensitive personal information in emails or enter them on websites (unless you are doing so purposefully on a secure server)

Avoid email attachments where possible
Avoid clicking on any URLs in email (even to opt out of spam)
Use plain text mode in email if possible
Avoid links and files shared in Instant Messaging software
Never open email from someone you don't know (line up all spam in your in-box and delete it)
Avoid taking actions or clickin on URLs in official looking email from banks, government, etc. (verify by phone or on the primary website)
Avoid e-cards which are not from a specific person (and check with the sender if you are unsure)
Never install updates or free security software from an email attachment or URL

Avoid clicking on banner ads where possible
Avoid visiting untrusted and inappropriate websites
Be careful of Internet search results as malware authors are seeding malicious websites with malware
Complementary browsers (e.g., Firefox, Opera) have good security track records, phishing filters, and other safety measures (e.g., NoScript) that can be used in addition to IE 7 with no conflicts. You can use these as a tool to cross-check questionable sites.

Your computer may be infected with malware when performance deteriorates, browser pop-ups appear, home pages change, firewall warnings are issued, etc.
Change your passwords after an infection in case a backdoor agent transmitted it
Look for updates in any software you are running and install them promptly, so that you are always on the latest version
Avoid email hoaxes circulating where you are asked to "pass on a special warning"
Remember that there are "no free gifts" or "special bargains" for you from strangers on the Internet
Setup separate user accounts for your children and use Vista's Parental controls
Educate your children, family members, and friends
Use a "Lessons Learned" approach when you make mistakes to avoid them in the future

The above list is an extract of Harry Waldron's safety tips from bleepingcomputer