Some financial experts are urging consumers to take special precautions to protect themselves against identity theft. This is particularly necessary, given the fact that many store customers will be paying for their packages with plastic.
Credit cards and debit cards can be easily commandeered by identity thieves who can wreak havoc with your credit card and checking account balances. It’s estimated that there will be some 10 million cases of identity theft this year, so it pays to be cautious when turning over your credit card or debit card.
Some experts are recommending that consumers take advantage of something called a “credit freeze.” With a credit freeze, you instruct the three major credit bureaus not to sell your personal financial information to a third party. As a result, your credit report will not be available to credit card issuers, banks, and others interested in your finances. Such a move reduces the risk that a thief will get a credit card issued in your name.
Of course, there are also disadvantages to a credit freeze. It means you won’t be able to apply for credit cards, home equity loans, and other forms of credit. You may also have to pay a fee for each credit bureau that issues a security freeze. Ending the freeze will cost you additional money in fees.
Another possibility is to attach a note to your credit report requesting that lenders call you before issuing credit in your name. This service is free of charge and it can also be much more convenient than a security freeze. However, you should be aware of the fact that such a flag is not a guarantee against fraud, since it’s considered not as safe as a security freeze.
In addition, it’s a good idea to shred all unused convenience checks and other paperwork that could easily be confiscated by an identity thief.
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