How to Avoid Identity Theft This Holiday Season

The holiday season is fast approaching, and that means the chance of identity theft is increasing. This is a vulnerable time of year for you, as you are likely using your credit card more and being solicited via the phone for donations. It is important to protect yourself and take extra precautions during the holidays. Your credit report can be damaged as a result of identity fraud, which can affect you the rest of the year.

Watch Out for Charity Scams

One of the biggest times for giving is the holiday season. Unfortunately, there are scammers out there taking advantage of good hearts to steal credit card information. As part of working to avoid identity theft this holiday season, be on your guard against telephone solicitations. In some cases, a scammer may pretend to be representing a charity -- even a well-known charity. You give your credit card number over the phone for a donation, and suddenly someone has it.

While it can be difficult to turn down phone solicitations for charity, make it your practice to say, politely, "I'm sorry, we do not give over the phone." If you want to give, choose one or two charities (or even your church!) and give to local chapters. You can also give to your local food bank. This way you are helping out, without risking your personal information and credit card. After all, you do not want the occasion to arise in which you need credit repair. Helping others is important, but you can't help others if your own credit report prevents you from being in a good place.

Protect Yourself from Identity Theft When Shopping Online

Every year, more and more people buy their holiday presents using the Internet. However, this can be dangerous in terms of your personal information. In order to avoid identity theft when shopping online, it is a good idea to take the following precautions:

1. Consider using a credit card. Credit cards have more protections against liability for identity theft. Use a credit card, rather than a debit card, when shopping online. This way you are better protected if your identity is stolen.

2. Install Internet security software. Make sure that your computer is properly protected against viruses, keyloggers and spyware. Have Internet security software installed on your computer that has a firewall and can protect you from online intruders. This will help you protect your personal infromation as you shop online for holiday gifts.

3. Check for security on the Web site. Make sure that the Web site you are on has protections. Check to make sure there is a security certificate (like VeriSign or eTrust) on the site. Also, check the address bar when you switch to the payment page. The "http" should change to "https" to indicate that things are secure. If that "s" doesn't appear when you go to enter your credit card number, don't.

4. Close your browser window. When you have finished your transaction, log out of the site and your account, and then close the browswer window. Many people have had their identities stolen by failing to take this simple precaution after ordering holiday gifts online.

And, of course, throughout the year you should check your credit report. This way, you can catch problems early and take the steps needed for proper credit repair.