Holidays Are Prime Time for Identity Thieves

   

Posted: Dec 10, 2009

With the holiday shopping season in full swing, many consumers are caught up in what kind of gift to purchase and for whom. As they rush around buying presents, they should keep in mind that the season of happiness also presents identity thieves with many opportunities to swipe personal and credit information that could mean many unhappy memories of the season.

A recent report from the Insurance Information Institute (III) noted that the increased activity associated with the holiday season could make people more lax when it comes to protecting themselves from identity theft.

"The hustle and bustle of the holidays creates the perfect opportunity for thieves bent on stealing your credit cards or other financial information," said Jeanne Salvatore, senior vice president and consumer spokeswoman for the III. "Shoppers are tired, stores are crowded, and it's easy to become less guarded about personal information that appears on personal checks, driver's licenses and credit cards."

There are a variety of techniques thieves can use to steal a person's credit information or identity. For example, some thieves may try to steal a person's credit card information outright, while other scammers will rely on "phishing," a technique that involves tricking a person into giving up important account information online by pretending to be a representative of a financial institution.

The III notes that victims of identity theft are often left with a lower credit score because of the way thieves use their information, including opening new accounts or running up credit card charges. Consumers with low credit scores may find it difficult to obtain new lines of credit, like mortgages, automobile loans, student loans and credit cards.

There are, however, steps that people can take to safeguard their information during the holidays. For example, consumers should shield the in-store terminal keypad when entering their personal identification number (PIN) to complete a debit transaction. They should also be sure to pocket their receipts after they've completed a purchase.

When shopping online, people should be certain that they're buying from reputable retailers and that the transactions occur over an encrypted connection.

Regardless of whether they shop at the mall, online or anywhere in between, consumers should make sure they pay attention to statements received from financial institutions and monitor their credit report and scores.

"Consumers should carefully monitor their bank balances and credit card bills to make sure that they actually made all of the transactions attributed to them," Salvatore said.

If, after taking precautions, consumers find that they've been the victim of identity theft, they should immediately contact their financial institutions and law enforcement authorities. They should also consider putting a freeze on their credit report. A freeze prevents credit reporting bureaus from releasing a consumer's information, thereby making it harder for an identity thief to open an account in their name.