Tips on how to protect yourself from identity theft during the busy holiday shopping season

stacey | November 15, 2011 | Comments (0)

The holiday shopping season offers plenty of opportunities for thieves who are after more than your money and purchases. Identity theft can be a particular problem at this time of year. Bel Air News & View sponsor Chip Schilling of Northern Chesapeake Insurance Services offers tips on how to protect yourself. Even something as simple as carrying a wallet in your back pocket or using an ATM can create opportunities for thieves if you’re not careful.

For more information, contact Chip Schilling at 410-420-3080 or chip@ncins.net.

Tips for Safe Holiday Shopping

The holiday season is a special time of giving and sharing with others. However, for identity thieves it’s a perfect time to steal your personal information. Thieves only need one single piece of personal information to take your identity and turn your financial life upside down. According to the Federal Trade Commission, there are nearly 10 million people, or five percent of the adult population, who become victims of identity theft each year. Identity theft costs victims an estimated $5 billion in out-of-pocket expenses from trying to reclaim their good credit. With technology advancing every day, it is important to know what you can do to protect yourself before it is too late.

Below are some special holiday identity theft prevention tips:

Safeguard your personal belongings. There are many thieves out there that still resort to the traditional criminal methods of purse snatching and pick-pocketing. So ladies, keep your purses close and never leave them unattended. Men should not carry their wallets in their back pants pocket. A “professional” pickpocket can easily remove your wallet without notice. Try not to carry your Social Security card, passport, or extra credit cards in your wallet or purse unless absolutely necessary.

Take precautions at the ATM. Be aware of your surroundings. When entering PINs use your body to shield the transaction from others. Thieves can easily look over your shoulder, or even spy from far away to steal your information. Take a good look at the machine itself. If you see a strange gadget attached to your ATM machine, it could be a “skimming device” which is designed to read your secure ATM card information. Finally, always use ATM machines in areas that are brightly lit and in secure locations.

Be careful with your credit card. Just as with using an ATM card, thieves can steal your credit card information by simply looking over your shoulder when you are making a purchase. Some thieves are using smart phone cameras to take pictures of shopper’s cards while the shopper is making a purchase. Another precaution to consider is to write “check photo ID” in the signature area on the back of your card. Pulling out your driver’s license every time you use your credit card may be a minor inconvenience but if your card is lost or stolen while shopping, a thief will have a hard time using the card. When you use your credit card, watch the clerk as they process the transaction. If you notice the clerk holding on to your card longer than normal or writing things down while your card is in their hand, ask questions and request that your card be returned. There have been instances of store clerks stealing card information right in front of shoppers. The same precaution applies when using your card at restaurants.

Use care when shopping online. Never shop online from a public computer (at the library, hotel, etc…). Websites often leave personal information behind on the hard drive after a transaction. If the computer that was used has any spyware installed on it by thieves, they might be able to steal your account numbers and passwords. If you are shopping from your home computer, make sure that you have an up to date and reliable anti-virus and anti-spyware software installed. You should also use an anti-malware program regularly. Create website user ID’s, passwords and PINs that are difficult for others to guess but easy for you to remember. Memorize these to avoid having to write them down. Be cautious about sharing your personal information online. Know where it is going and to whom if you choose to enter it online. Read each website’s privacy policy and check for the padlock icon on the bottom of the screen to help ensure your privacy.

Review your credit card and bank (ATM) card transactions regularly. Don’t wait for your statements to be mailed or emailed to you. Shortly after every shopping trip, check your current credit card balance either online or over the phone with your credit card company/bank. Since your purchases will be fresh in your mind, it will be easier to recognize a fraudulent transaction.

Confirm the legitimacy of a charity before donating. In the spirit of the holiday season, I would encourage everyone to donate to a charitable organization. Just be aware that there are criminals out there that will pose as a charitable organization in order to steal your money and/or your personal information. Never give out any personal information like your birth date or social security number over the phone or online. If you do give credit card information or bank account information to a charitable organization for donation purposes, always contact the charity directly first and verify the legitimacy of the organization (you can do this online too at www.charitynavigator.org as well).

Here are some basic identity theft prevention tips that are good any time of year:

Check your credit report, which is available free once every 12 months at www.annualcreditreport.com from each of the three nationwide consumer credit reporting companies. If you suspect that there are any inaccuracies, call the bureau immediately. (Call Equifax at 800-685-1111; Experian at 888-EXPERIAN; or TransUnion at 800-888-4213.)

Protect your Social Security number. Do not use your SSN as an identifier anywhere.

Buy a shredder to destroy any financial and personal documents before throwing them away. This includes bills, statements and pre-approved credit card offers. This is simple and effective.

Never put outgoing documents that contain personal information in your mailbox to be picked up; drop them directly at the post office or a postal service mailbox.

Use caution when responding to, or clicking on, an unfamiliar or unsolicited email. It is very easy for someone to scam you by using a seemingly authentic Web address. Avoid emailing personal or financial information to anyone. It is much safer to furnish this information over the phone, provided you are the one who initiated the call.

Report any suspicious activity to the Federal Trade Commission (FTC) immediately. For more important prevention tips visit the FTC Web site at www.consumer.gov/idtheft.

Insurance Solutions:

Many insurance companies offer identity theft/identity fraud expense coverage as an endorsement to homeowners, condo or renters insurance policies. For a minimal fee (approx. $25/year – varies per company), this insurance provides a specified amount of coverage, usually around $15,000 – $25,000, for expenses incurred due to identity theft including (check with your insurer for their specific coverage):

- Lost wages

- Reasonable attorney fees incurred, with prior approval

- Telephone, certified mailing and notary charges

- Loan re-application fees

- Daycare and eldercare expenses

- In addition, many companies will offer the services of a identity theft/fraud specialist (described below)

An identity theft/fraud specialist can provide you with the help you need in the event you become a victim of identity theft. A identity theft/fraud specialist will guide you through the steps of reclaiming your identity and repairing your damaged financial history, including ordering credit reports, alerting credit reporting agencies, enrolling you in six months of daily credit monitoring, and preparing dispute letters on your behalf. Recovering as a victim of identity theft can be a long, expensive and very complex process. Adding identity theft/fraud expense coverage to your property insurance policy, is a way that you can protect yourself from the out-of-pocket expenses associated with cleaning up your credit.

Northern Chesapeake Insurance is an independent insurance agency offering a full range of insurance products including auto, home, business, boat, motorcycle, life insurance and more. We are a member of Independent Agents & Brokers of Maryland (IA&B).