Shop smart and keep thieves away this holiday season
Identity thieves go hunting during the holiday rush, and a distracted shopper makes an easy target. You can’t erase the risk, but smart habits online and in stores go a long way toward keeping your information safe.
1 Why Thieves Target Holiday Shoppers
You may be too busy scouting for sales and checking things off your to-do list to notice, but identity thieves go looking for targets this time of year. And the more preoccupied you are, the more attractive you become as a potential victim.
While you can’t eliminate the risk, there are many ways to help reduce it, says Carrie Kerskie, identity theft expert and author of “Your Public Identity: Because Nothing is Private Anymore.”
It’s smart to be skeptical of deals that seem too good to be true — you could be buying counterfeit merchandise or being lured to a website that exists only to steal credit information.
There are also good reasons to favor credit cards over debit cards. Debit cards give you far less time to report fraudulent use and get your money back. They also offer fewer consumer protections than credit cards.
On the other hand, debit cards can be effective in helping you limit spending to what you have budgeted. Set up real-time alerts so that you get a text or email whenever the card is used. If it’s used fraudulently, report it immediately.
2 Safe Shopping Online
According to Experian, 43% of people reporting that they were victims of identity theft in 2017 said it happened online, during the holidays. While shopping online makes it easy to compare prices, be cautious. Here are some tips for shopping safely online:
Shop on websites that you are familiar with.
Double-check that you have typed in the URL correctly before you order anything or enter payment information. Misspelled versions of real websites are sometimes purchased by criminals, Kerskie says, a practice known as “typosquatting.”
Print a copy of your order confirmation rather than relying on the website to send it to you. It might be your only evidence of your purchase.
“Look for the green padlock before entering payment information,” advises Kerskie. She cautions that the green padlock, located before the URL, is not foolproof. Criminals can buy security certificates to get it. However, the absence of one is a sign you should shop elsewhere.
Before you order, search online for customer complaints, advises Kerskie. Pay special attention to any that mention products not delivered or problems getting refunds.
Avoid using public Wi-Fi to shop online. If you must do it, get a virtual private network so that your information is encrypted.
3 In-Person Shopping Safety Tips
Embedded chips have made in-store fraud more difficult, and more criminals are going online, according to a study published last year by Javelin, a digital finance research firm. “Card not present fraud” — where a charge is made by phone, postal mail or online — has become 81% more likely than in-store fraud. That’s not to suggest shopping at the mall is risk-free. Good habits for shopping in person include:
Know where your purse or backpack is at all times and keep it zipped or snapped shut. That means not turning your back when it’s in a shopping cart or stepping away to use the restroom and leaving it in a restaurant booth.
Keep your cards in a wallet credit card holder rather than loose in a pocket.
If you buy from an online marketplace and need to meet in person, choose a busy, well-lighted location, and don’t go alone.
Password-protect your smartphone. Especially if you use Apple Wallet or Google Pay, your cards are vulnerable. Kerskie says a password is more secure than a thumbprint or facial recognition.
Account for every card you took with you when you return home.
4 Watch Your Statements and Credit
Check statements carefully and make sure you recognize every purchase.
Also, keep tabs on your credit reports and scores. Many personal finance websites provide free credit reports and scores to consumers. Applications or accounts you don’t recognize can tip you off to a problem early, when it’s easier to resolve.
Bev O’Shea is a writer at NerdWallet. The article Identity Theft: Don’t Get Hustled in the Holiday Bustle originally appeared on NerdWallet.
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Frequently Asked Questions
Why are identity thieves more active during the holidays?
Identity thieves go looking for targets during the holiday season because shoppers are distracted by sales and to-do lists. The more preoccupied you are, the more attractive you become as a potential victim. While you can’t eliminate the risk entirely, staying alert and following safe shopping habits both online and in person can significantly reduce your chances of being targeted during the busy holiday rush.
Should I use a credit card or a debit card for holiday shopping?
There are good reasons to favor credit cards over debit cards. Debit cards give you far less time to report fraudulent use and get your money back, and they offer fewer consumer protections. That said, debit cards can help you limit spending to your budget. If you use one, set up real-time alerts so you get a text or email whenever the card is used, and report any fraudulent charge immediately.
How can I shop safely online during the holidays?
Shop on websites you are familiar with and double-check the URL before entering payment information, since criminals use misspelled lookalike sites in a practice called typosquatting. Print your order confirmation, look for the green padlock before paying, and search for customer complaints before ordering. Avoid public Wi-Fi for shopping, or use a virtual private network so your information is encrypted.
What is “card not present” fraud?
Card not present fraud is when a charge is made by phone, postal mail or online rather than in a store. According to a study by Javelin, a digital finance research firm, embedded chips have made in-store fraud more difficult, pushing more criminals online. As a result, card not present fraud has become 81% more likely than in-store fraud, though shopping at the mall is still not risk-free.
How do I catch identity theft early after holiday shopping?
Check your statements carefully and make sure you recognize every purchase. Also keep tabs on your credit reports and scores, since many personal finance websites provide free credit reports and scores to consumers. Applications or accounts you don’t recognize can tip you off to a problem early, when it is easier to resolve. Acting quickly limits the damage if your information has been stolen.
