Identity theft prevention is important year round and even more so during the holidays when people are focused on family, festivities and fun. Identity thieves know that more people are out shopping, that more money is being spent, and that distracted people may not be as diligent about protecting their finances at this time. Here are some tips to help you protect your personal identity and your credit rating against fraud.
1) Keep your credit card in sight when checking out of a store or restaurant to avoid skimming.
Skimming has become a popular way for thieves to capture electronic information from credit and debit cards. When you can’t see your card being processed, it could be swept through a capture machine before your actual purchase is transacted through the check-out register. Taking your card up to the counter at a restaurant, and keeping an eye on your card at the register can help prevent the use of skimming.
2) Do not carry your Social Security card with you. It holds the keys to your identity and you rarely need it.
Lock it up in a safe place at home. No store is going to ask you for your social security number. And if your purse or wallet gets lost, then ALL of your personal identification information could be in the hands of an identity thief.
3) Do not carry all of your credit cards with you, only the ones you are using that day.
If you know which stores you’re going to, only take the credit cards you’ll need at those stores. Again, a lost wallet with 2-3 credit cards is easier to report and close accounts as opposed to a wallet full of every credit, retail store and fuel card you have.
NOTE: The Privacy Rights Clearinghouse offers Holiday Shopping Tips including how to carry your purse or wallet to prevent theft.
4) Keep credit card balances under 25% of their credit limit to avoid a credit score drop.
The second largest part of the FICO score is the amounts owed on your accounts. Any revolving account that has a balance over 50% of the credit limit will have a detrimental affect on scores. Balances close to the limit – maxed out – can cause scores to nosedive.
5) Resist that offer of a possible discount at the check out register that requires you to apply for a store credit card.
Remember – applying does not mean approval. Whenever you apply for credit or a loan, it is a Hard Inquiry that stays on your report for two years and counts against your scores.
6) Don’t leave mail unattended in an unlocked mail box.
Many people send money or checks in holiday cards. Identity thieves know that outgoing mail can be a treasure trove of personal information when people pay bills – account number, personal checks, signatures, etc. They also know that incoming mail can be full of gifts and is often left sitting for hours in an unprotected mail box.
7) Check your credit reports after the holidays to look for unknown accounts or unusual balances.
You can do this for no cost at www.annualcreditreport.com. Look for accounts you don’t recall having, balances on accounts that you haven’t used, extra birth dates and Social Security numbers, and addresses in places you never lived.
You can get more identity theft prevention information here.
After the new year, you may want to treat yourself to a Credit Checkup. For only $100 you get a complete analysis of your recent credit report with strategies to grow and protect your scores. Contact us today for more information.
