Guarding Your Finances from Identity Theft During Holiday Shopping Sprees
With Black Friday and Cyber Monday right around the corner, shopping online may become your go-to activity more than usual. But how can you safeguard yourself against identity theft and credit card fraud during these times? Having your identity stolen can lead to costly financial consequences and damage to your credit score. Thankfully, there are steps you can take to protect yourself.
Regularly Monitor Financial Accounts
Keep a close eye on all your financial accounts, paying particular attention during the holiday season. Be on the lookout for any suspicious activities, such as unauthorized purchases. If you spot anything out of the norm, be sure to promptly contact your payment method’s fraud department. Here's our guide on when you might need to dispute a credit card charge or file a fraud complaint.
Making it a habit to thoroughly check your credit card and bank statements every month will ensure that you'll notice any unexpected transactions. Additionally, look for accounts you don't recognize on your credit report at least once a year. Keeping an eye on your finances can help you detect fraudulent activity early.
Leverage Credit Report Checks
You can obtain a free copy of your credit report from each of the three major credit bureaus – Equifax, Experian, and TransUnion – anytime during the year. Review your reports for any accounts that don't belong to you, as this could be a sign of identity theft. By identifying fraudulent activity early, you can take swift action to address the issue.
Set Up Alerts
Many banks and credit card companies offer alert options that notify you of specific account activities, such as exceeding a set dollar amount or making a payment. Activating these alerts will help you respond quickly to any fraudulent activities, further protecting your finances.
Develop Strong Passwords
Create complex, unique passwords for all your financial accounts. Use a random mix of letters, numbers, and symbols to strengthen your passwords. Make every password unique to minimize the chance of exploitation in case one of them gets compromised. If you develop a strong, random password, you won't need to change it frequently.
However, make sure to update your passwords immediately if you learn about a data breach involving any of your accounts. Also, avoid reusing passwords.
Freeze Your Credit
If you suspect that your identity has been stolen, freezing your credit is a good defensive measure. This action will prevent any new accounts from being opened in your name while the freeze is in effect. Remember to lift the freeze when you apply for a loan to ensure the process goes smoothly.
Stay Aware of Scams
Avoid falling prey to phishing scams, phone calls, emails, or text messages requesting personal information, such as passwords or Social Security numbers. Financial institutions will never ask for such sensitive information over the phone or through a channel they didn't initiate. If you receive suspicious contact, don't respond, don't click on links, and don't download attachments unless you can verify their legitimacy.
Remain Proactive in Fighting Fraud
Being proactive is the best way to protect yourself against fraudsters. Regularly monitoring your accounts, using strong passwords, and checking your credit are essential steps for safeguarding your financial security.
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- Verify Website Legitimacy: Check for a padlock icon in the address bar and a "https" URL to ensure the site is secure. Avoid sites with misspelled domain names or lacking security features.
- Opt for Credit Cards: Use credit cards instead of debit cards for online shopping to limit financial damage in case of fraud.
- Monitor Transactions: Regularly log into your online accounts to monitor transactions and set up alerts for any activities exceeding a certain amount or noticeable discrepancies.
- Install Anti-Virus Software: Regularly update anti-virus protection software on your computer to avoid malware attacks.
- Use a VPN: Consider using a reputable VPN for an added layer of security, especially on public networks.
- Be Wary of Emails and Links: Avoid responding to suspicious emails or clicking on dubious links and pop-up ads.
- Shred Sensitive Documents: Securely dispose of old documents containing personal information by shredding them.
- Freeze Your Credit Report: Freezing your credit report can help prevent identity thieves from opening new accounts in your name.
- Invest in Protection Services: Consider investing in identity theft protection services, like LifeLock or IdentityGuard, to monitor and alert you to potential threats.
- Avoid Public Wi-Fi: Avoid using public Wi-Fi for online banking, shopping, or accessing personal information.
- Keep Personal Information Secure: Protect your Social Security card and personal documents to minimize opportunities for identity theft.
- File a FDIC Complaint: File a complaint with the FDIC if you encounter bank fraud or identity theft issues.
