Put Identity Theft Protection on Your Shopping List

Last month, someone in Newark, New Jersey got my debit/visa information and nearly emptied my account. Fortunately, my bank, Bank of America, caught it and put an end to their evil plan. But it got me thinking; we should all take extra care during this time of year.

The craziness of the holiday shopping season creates ample opportunity for crooks bent on stealing your credit cards or financial information. People become tired, the stores are crowded and so it’s easy to become less guarded about personal information such as driver’s licenses, personal checks, social security numbers and credit cards. Thieves can take this information and empty bank accounts, open credit cards and even establish phony insurance policies.

I did a little Google searching and found that nearly 8.5 million Americans had become victims in 2005 alone.

Here are some tips that may help:

• Keep the amount of personal information in you wallet or purse to a minimum.
• Guard your cards; don’t let people see them
• Always take your receipts and don’t throw them in a public trash
• Only buy from reputable on-line retailers
• Order a copy of your free credit report and make certain it is accurate
• Password protect your credit cards and bank accounts. (And use real passwords, not your kid’s name, or your DOB.)
• Monitor your accounts. Know how much money you have.
• Do not give you personal info out over the phone or online unless, you initiate the contact.
• Shred personal documents.

To irritate the crook even more, have the credit reporting agencies to put a fraud alert on your account. This way, they must notify you before opening a new account or changing an existing one.

Even if you do all those things, you may still become a victim. So, call your insurance agent for help. Some insurance companies include identity theft coverage as part of their homeowners’ policy, selling it as either a stand-alone policy or as an endorsement to a homeowners or renters insurance policy. This coverage gives you reimbursement for the expenses associated with the identity and credit restoration process including phone bills, lost wages, notary and certified mailing costs, and sometimes attorney fees (with the prior consent of the insurer). They may also include the added services of a fraud specialist to assist and guide victims through the process of restoring and protecting their identity. Contact your insurance agent or company representative to find out what kind of coverage is available. The cost is minimal ($25 per year at State Farm) and well worth the investment.

Now that you are protected, go out and spend some money and fuel the recovery!