Change your password often. To help ensure that your password is safe, change it often and use a "strong" password - one that includes both letters and numbers, which make it harder to break.
Do not share your password. Most e-mail administrators will not ask for your password; Hotmail will never ask for it. If you get a message from someone purporting to be from your ISP or e-mail provider asking for your password, do not respond. This is a well-known, but rarely used, trick designed to fool users. As a rule, never share your password with anyone.
Don't open attachments from anyone you don't know. Exercise caution with attachments, and never open those from unknown sources.
Log out. Logging out of an e-mail account when finished can save you from rare but harmful security breaches. When using Web-based e-mail, be sure to log out of your account rather than simply pointing your browser to a new Web page. When using a public terminal, such as at an Internet café, it is advised that you close the browser when ending an Internet session.
Don't respond to spam. Responding to unsolicited mail only confirms that you have an active e-mail address and could open you up to further solicitation and scams that can clog your e-mail inbox. Forward spam to the customer service department of the source's e-mail provider (usually the address is something like abuse@[implicateddomain].com) and to uce@ftc.gov to alert the Federal Trade Commission. To help control spam, Hotmail provides members with "filters" for incoming mail. These can easily be set up to send certain messages (such as those that include particular words) directly to your online trash can.
Keep your browser and Internet software updated. Browsers, such as Microsoft® Internet Explorer, often provide updates that deliver enhanced security features and bug fixes that sometimes offer increased protection.
Use a secure network. If your e-mail is part of a secure network, you are protected by administrators who watch for potential security problems and act to safeguard you from "hackers" (malicious users) who may try to steal personal information transferred through the network. Use caution with any unfamiliar network. Although the risk of a security breach is small, always use stations at terminals that are maintained by people you trust or ask if the terminal you are using is protected.
Use common sense. Be smart when you're on the Internet, and maintain a healthy dose of skepticism. Use caution when revealing personal information, such as your physical address, to anyone you meet in cyberspace, even if they claim to be someone of authority. Do not be duped by malicious e-mails asking you for your password.
Compiled from MSN Hotmail