Identity Theft & Online Shopping: Staying Safe During the Holiday Season

The holiday season is one of the busiest times of the year for in-store and online shopping. With festive sales, deals, and limited-time offers, many consumers rush to purchase, especially online. However, this season also marks a peak time for identity theft and online fraud, with cybercriminals eager to exploit the surge in digital transactions.

An April 2024 report by AARP revealed that in 2023, American adults lost a combined $43 billion due to identity fraud.

“As online shopping grows in popularity, its associated risks. Identity theft can result in financial loss, stress, and a significant hit to your credit score. It’s essential to protect your info when shopping online, especially during the holiday season, to ensure that your holidays remain joyful and stress-free,” advises David Neuwirth, Senior Vice President, Investments at David Lerner Associates, Inc.

Here are some practical tips and strategies to safeguard your personal information and shop with confidence this holiday season:

1. Use Complex Passwords for Online AccountsCreating strong, unique passwords for each account is one of the most effective ways to protect your personal information while shopping online. Many people make the mistake of using easily guessable information or the same password across multiple websites, which can lead to a domino effect if just one account is compromised. Use upper and lowercase letters, numbers, and special characters to make your passwords more secure. Consider using a password manager to keep your login credentials encrypted, making it harder for hackers to access your accounts.
2. Enable Two-Factor Authentication (2FA) for Any Account That Allows ItEven with strong passwords, adding an extra layer of security to your accounts can significantly reduce the chances of identity theft. Two-Factor Authentication (2FA) requires you to provide additional information, such as a code sent to your phone or email, before you can log in to an account. This ensures that even if a hacker gets hold of your password, they won’t be able to access your account without the second form of authentication.
3. Shop on Trusted Websites OnlyOne of the easiest ways to ensure you’re shopping safely is by verifying the security of the websites you’re buying from. Always look for the “https://” in the web address (the “s” stands for secure) and a padlock icon in the browser’s address bar before entering your payment or personal information. This indicates that the site uses encryption to protect your data.

   Be cautious of websites that offer deals that seem too good to be true. Fraudulent sites often mimic legitimate retailers to trick customers into entering sensitive information. Stick to well-known retailers or thoroughly research unfamiliar websites before making any purchases.

4. Provide as Little Personal Info as You Possibly CanLimit the personal information you provide online or in stores. The less data you share, the lower the risk of identity theft. To protect your privacy, only provide essential details and avoid oversharing on forms, websites, and social media.
5. Monitor Your Bank Accounts and Credit Card Statements RegularlyDuring the holiday season, it’s easy to lose track of all your transactions. However, monitoring your bank and credit card statements closely is one of the best ways to catch fraudulent activity early. Check your accounts frequently for any suspicious or unauthorized transactions, no matter how small. If you notice anything unusual, report it to your financial institution immediately.

   Most banks and credit card providers allow you to set up alerts for transactions over a certain amount or for any purchases made in foreign countries. These alerts can help you quickly identify if someone is using your financial information without permission.

6. Use Secured Networks When Shopping OnlineShopping on public Wi-Fi networks can expose your personal information to hackers. While making quick holiday purchases while sitting at a coffee shop or airport is tempting, public Wi-Fi is often unsecured, making it easy for cybercriminals to intercept your data.

   Instead, use your mobile data or wait until you’re on a secure, private Wi-Fi network to complete your transactions. If you must use public Wi-Fi, consider using a Virtual Private Network (VPN), which encrypts your internet connection and adds a layer of security to your online activities.

7. In Case You’re Scammed, File A Complaint Immediately!If you fall victim to a scam, report it immediately to the appropriate authorities, such as the Federal Trade Commission (FTC) or your financial institutions. Acting quickly can help minimize financial damage and prevent fraudsters from further using your personal data.

The holiday season is meant to be a time of joy and celebration, not stress and worry. By taking the necessary precautions, you can protect your personal info from identity theft and enjoy a safe online shopping experience.

Ready to make this holiday season safer? Ensure you take the right steps to protect your identity and financial information. Visit David Lerner Associates for more tips on safeguarding your financial future, or contact us today to learn how we can help you achieve your financial goals.

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.