‘Tis the season for merriment, gift-giving and festive parties. Don’t let it also be the season for identity theft and scams. The holidays are one of the busiest times for shopping and spending money, making it a prime time for fraudsters and thieves. In order to keep your holidays as cheery as possible, follow these 10 tips to protect your credit, identity and finances this season…
Beware of Phishing Scams. While doing your holiday shopping, you understandably are looking for the best deals you can find. Yet, be on the lookout for promotions that seem too good to be true. These scams oftentimes are sent through unsolicited emails with a link asking for your personal and credit card information, and/or appear to be from a legitimate source such as a popular retailer. Before making a purchase, visit the retailer’s secure Website directly, which should start with “https://” and be authorized by the Better Business Bureau.
Use Protective Passwords. Preventing identity theft always begins with good passwords and virus software. Your password should be a combination of letters, numbers, and symbols. Using different passwords for your various accounts and changing your passwords regularly is another great way to protect yourself online.
Engage in Secure Online Transactions. Don’t share your personal identifying information over email and social networking sites. You should also avoid online shopping over public Wi-Fi, because doing so would involve sending your credit card number and address over a non-secure Internet. However, if you find yourself often using the Wi-Fi at airports, hotels, and restaurants, you can use a VPN (Virtual Private Network) to protect your information and your devices. For example, NordVPN is one such VPN that work on PC’s, Android, Mac, iPhone, and iPad to keep you protected when you may be using an untrusted public network.
Shop Smart at Stores. Before making a trip to the mall this holiday season, lighten your load by not bringing large amounts of cash or credit cards you don’t plan to use. Once at the stores, stay aware of your surroundings. Be on the lookout for pickpockets and cover your pin number while using an ATM.
Credit, not debit. Use a credit card rather than a debit card in purchasing your gifts. Credit cards offer full protection from fraudulent charges, whereas debit cards do not because banks will have to take the time to investigate suspicious charges before reimbursing you. Additionally, credit cards offer more options if you ever have to dispute a charge, such as if you never receive an item you paid for or if there are unauthorized charges on the card.
Use a chip card. A standby in Europe for years, chip cards (or EMV payment cards) are just now becoming commonplace in the U.S. Chip cards offer better security because they create a one-time code each time they are used whereas the typical credit card’s magnetic stripe can be replicated by fraudsters.
Utilize the protection that comes with your credit card. Many credit cards offer identity theft protection. American Express, for example, can send updates to your phone or email when irregular activity is detected and then provides the opportunity for you to verify or deny any suspicious charges. Additionally, MasterCard offers their customers guidance when identity theft does occur.
Look out for skimming. Watch for suspicious devices attached to credit card readers or ATM machines that may have been put there by fraudsters looking to steal your credit card information.
Be wary of retail credit cards. Right before you complete a transaction, a retailer will frequently ask if you would like to open up a credit card through the store. Applications for these retail credit cards often involve writing down your personal information, even your Social Security number, on a piece of paper. Besides the concerning lack of security involved, these retail credit cards may have hidden costs or very high interest rates. If you really are interested in the retail credit card, ask to apply online through a secure site.
Monitor your credit and account statements. During this season, monitor your credit report, credit card bills, and banking statements more carefully and more often. Consider using only one credit card for all holiday transactions so that all of your purchases are easy to track. If you do notice suspicious activity on your credit card or believe that your identity has been stolen, you should place a fraud alert by contacting the three major credit bureaus (Equifax, Experian, and TransUnion), request a credit report, and report the incident to the Federal Trade Commission as well as your local police. By notifying the credit bureaus of the fraudulent activity, the bureaus can place a 90-day fraud alert to monitor any activity associated with your name and credit.
Don’t let theft, fraud, or scams bring you down this holiday season. By following these tips to protect your credit, identity and finances, you can have more time to focus on what really matters during the holidays—your loved ones.