The holidays are perfect for a lot of things: eggnog, yuletide…and identity theft? Identity theft is higher around the holidays; almost 10 million Americans learned that they were victims of identity fraud in 2008, according to the most recent study by Javelin Research & Strategy. That number is on the rise, up from 8.1 million victims in 2007.
Since so many people use their credit cards during the Christmas season, it’s as big an opportunity for identity thieves as it is for retailers.The worst part about identity theft is that most people don’t even know they’re victims until it’s too late. As a result, we bring you LearnVest techniques to ring in the New Year safe and sound from scammers:
Sign Up For Identity Protection.
For $9.95 per month, Experian offers ProtectMyId which monitors your three credit reports on a daily basis and scans the web to make sure that no one is using your Social Security number. The service will alert you about key changes to your credit report, and it will put you in touch with a dedicated representative to help you if you have been or become a victim of identity fraud. Additionally, ProtectMyID.com is backed by a $1 million product guarantee.
Read Every Single Statement.
Read every single line of your credit card statement. If any of the charges look fishy, dispute charges immediately and investigate further to determine if your identity has been stolen. This is one of the easiest ways to catch identity theft early on.
Check Your Credit Report Every Year. At least.
If you’re planning a big purchase, had a loan rejected, or suspect identity theft, check it more often. Scrutinize your report and dispute any activity that you did not initiate.
Choose Credit & Debit Cards With Zero Liability.
Nearly all financial institutions automatically protect you from unauthorized transactions, but make sure that your credit and debit cards won’t charge you if a thief starts ringing up your expenses.
Suspect Everyone—Even Those You Trust.
More than 50% of identity theft is perpetrated by people who know the victim, according to the Federal Trade Commission (FTC). As many as 70% of all identity theft occurs in the workplace by employees, found a recent study by Michigan State University. Put away bank statements, credit cards, checkbooks, and pre-approved offers instead of leaving them out.
Avoid Email Scams.
Only open email attachments that you’re expecting, even if you recognize the sender. Make sure that your computer is protected with virus and spyware programs that have up-to-date definitions. If you want to learn more about the email you received, then visit the company’s website on your own (do not follow the email link). Only purchase from sites you know and trust; check the Web address to make sure it’s the real Website and not a lookalike.
Give Only To Charities You Trust.
During the holidays, charity scams are depressingly plentiful. We recommend donating through a charity’s Website rather than over the phone or via a mail solicitation.
Only Use Reputable Online Auction Sites.
Giving your credit card number and mailing address to an online seller provides him with enough information to steal your identity. Stick with reputable sites like eBay, which has lots of security and guarantees. Read sellers’ feedback carefully and look for indications that the comments are fake. Read through eBay auction guides to spot and avoid scams.
Wipe Your Hard Drive Before Ditching It.
Deleting files from your computer doesn’t sufficiently delete information like medical records, personal email, and credit card numbers. Researchers at MIT found that 128 of 158 used hard drives still had usable information on them. Consider using one of the many professional data erasing programs, like Data Cleaner, which is free for a month and then about $30 to buy.
