Beware of ID Theft During the Holidays; Tips for Protecting Yourself Online and in Stores

By Eileen AJ ConnellyAssociated Press
Posted: Sunday, Dec. 07, 2008

Six steps you can take to protect your identity while holiday shopping:

Do not use debit cards. Why? Because credit card companies provide better coverage in case of theft, limiting a card holder's liability to $50. Many bank debit cards have no liability limits, and if a thief gets access to an account, it could be cleaned out before the victim even knows there's a problem.

Use just one credit card. This limits the amount of information in circulation. Also, instead of signing the credit card write “SEE ID” on the back, which Domeniko said will force merchants to ask the user for identification.

Don't let your credit card out of your sight. Unscrupulous workers can copy numbers or skim information into a second machine. Make sure clerks return your card before you leave the checkout.

Travel light. Remove anything from your wallet you don't need; never carry your Social Security card. Leave your checkbook at home if you're not going to use it.
Keep receipts. Not only do they help if returns are necessary, but receipts contain information that can be helpful to thieves. Never leave receipts visible in cars or exposed elsewhere.

Be savvy online. Check for the seals from VeriSign, the Better Business Bureau or other groups that authenticate Web sites and click on them. Legitimate sites will have links to certifications. No links could mean the symbols were simply copied to the site.
Shoppers both online and in the malls shouldn't let their guards down while hunting for gifts – a slight slip-up and they may give away more than they bargain for, identity theft experts say.

No one knows exactly how many people have their personal information stolen each year, but government statistics suggest the number may hit 8 million or more. Whether through physical theft of forms of identification, or through electronic means online, or at stores where cards are swiped for purchases, thieves have myriad ways to obtain your personal information.

Take that woman behind you at the mall ATM. She may be standing close to let the crowds pass by, but she also may be trying to sneak a peek at your PIN number. And the e-mail you receive asking you to “verify” your credit card information is probably not from the site where you just purchased your nephew's present, but from a scammer who tapped into the retailer's site.

“ID theft is obviously a threat any time of year, but particularly during the holidays, thieves and crooks come out from under their rocks to take advantage of unsuspecting consumers,” said Gail Cunningham of the National Foundation for Credit Counseling, which offers tips for consumers at www.protectyouridnow.org.

Steven Domeniko, chief executive of IdentityTruth, an identity protection service based in Westborough, Mass., said the recession is likely to contribute to a rise in ID theft. “People are getting more creative in defrauding other people,” he said.

One thing that concerns Domeniko is that much of the focus on ID theft centers on credit card use, but illegal ATM transactions are a large and growing problem. “People need to be more aware that they're susceptible and they can lose a lot more,” he said, noting that thieves who access bank accounts can drain them before someone knows they're a victim. He advised against using freestanding kiosk ATMs and instead using bank ATMs equipped with security cameras.