Internet identity theft is growing at least as fast as internet shopping. A few Billion dollars will be spent online in November and December alone. Alone the way, thousands will become victims of identity theft. The FTC estimates over 9 million were affected in 2006.
Sounds frightening – but with a few simple precautions you can greatly reduce both the likelihood of having your ID stolen while online, and the impact if your ID is somehow compromised. This list could be longer, but here’s what we call “the critical list“, things you really should address before you dive into your holiday shopping:
- Use Credit Cards rather than Debit Cards for online shopping: Debit cards have fewer consumer protections and also lack charge-back rights which can be critical if you have problems returning a purchase.
- Watch your Ids and Passwords closely: This is common knowledge that is even more critical during this busy season. Do not use the same ID and Password for all of your accounts and memberships and be careful where you write these down.
- Watch for spoofing/phishing type emails: Banks, Credit card Companies, and Credit Unions never send out emails asking you to enter (or reenter) all of your personal information or account numbers. Yet millions will get emails asking for these details, these are all junk! Never respond to these email requests. If you have any doubt about a email (they look official on purpose), simply call your financial institution.
- Shop with merchants you know: It’s fun to Google around for the absolute best deal. However, by sticking with merchants you know and trust, your chances of having problems is much less. You may try asking a familiar merchant to match an online deal you found elsewhere, many will match the offer.
- Identity Theft Protection Plans: Having LifeLock or Debix coverage will stop anyone from opening new lines of credit in your name. With our 10% discount the coverage will cost less than many of the gifts you’ll buy, and it will last all year.
- Keep Detailed Records: This is a tough one for many of us, but the dividends can be huge. Keep your receipts and make notes of the items you buy. This will help in the event you need to return something and also makes it much easier to reconcile your accounts and quickly notice any suspicious activity.
Shopping online is fun, time saving, and often a great way to save money. The simple steps listed here will allow you to safely shop from the comfort of your home with little worry about internet thieves and unscrupulous merchants.