It is the parents responsibility to be ever vigilant and ensure the Internet is a safe and enjoyable place for our children, and the best way to do that is to:
Set rules and boundaries for the use of the internet.
Implement safeguards to keep your children from safe.

Setting Rules
One of the first rules that children learn in life is don’t talk to strangers. Children are not yet able to discern someone’s intent, and are by nature, very trusting. This makes them an easy target for predators. This rule also should apply to the internet. In our home our children are not allowed to use chat rooms of any sort, nor use any instant messaging, as they do not know who is on the other side of the computer.
The computer should be stationed in a highly trafficked part of the house so parents can supervise the activity of their children. It is much harder to supervise Internet activity if the computer is in the child’s bedroom or a den.
Time on the computer should be limited to doing something specific such as researching homework, or playing a game (for a limited time). This rule serves a two-fold purpose. It keeps the child from spending too much time indoors which can have health complications. But it also cuts down on bored-surfing, which is where a child is on the computer doing nothing but surfing around. This can lead to a child stumbling across a site that is inappropriate.

Implement Safeguards
There are several good filtering software products that help parents keep track of their computer usage and protect their children. Some cost money and other are free.

One of the best and most popular filtering software products is K9. It is also free. http://www1.k9webprotection.com/

Net Nanny is on of the original filtering software companies. They charge for their service, but they constantly rate as the best. http://www.netnanny.com/
Keeping track of computer history and chat transcripts. All internet browsers have an option to keep track of the sites that have been visited. If you suspect your child may be visiting inappropriate sites, you can look to see where they have been. However, the browsers also have the option to delete all the history so if you find that the history on a browser has been deleted, this is a sign that someone may not want you to know where they have been. In our home we have a standing rule that no one is allowed to delete the history without permission first.

The Internet can and should be a safe and enjoyable place for children and parents alike. By taking a few simple steps and utilizing some caution, parents can have the peace of mind that their children are safe.