The holiday season is here—a time for family, joy, and, let’s be honest, lots of shopping. While grabbing those deals and crossing off wish lists, it’s easy to forget one thing: scammers love the holidays too. Every year, identity theft skyrockets during the holidays as scammers take advantage of the shopping frenzy to steal your personal information.
If you’re shopping online this year, it’s crucial to protect your identity and your credit score. Identity theft can lead to fraudulent transactions, a damaged credit score, and even financial setbacks that derail your plans for the new year. Here are some key tips to keep your credit score safe and what to do if the unthinkable happens.
Why the Holidays Are Prime Time for Scammers
The holiday rush creates the perfect storm for scammers. With everyone focused on buying gifts and scoring deals, cybercriminals ramp up their efforts to steal sensitive information. They’re sneaky—posing as trusted retailers, sending phishing emails, or setting up fake websites that mimic popular stores.
The consequences of falling for these scams can be devastating. If someone steals your identity, they can open credit cards in your name, rack up debt, and leave your credit score in pretty bad shape. Recovering from identity theft is possible, but it takes time, money, and energy—things you don’t want to lose during the holidays.
Tips to Keep Your Credit Score Safe While Shopping Online
Here are some simple but powerful steps you can take to protect yourself:
1. Shop Only on Secure Websites
When shopping online, make sure the website starts with “https” (the “s” stands for secure) and has a padlock symbol in the browser. Avoid clicking on random ads or links, even if they promise jaw-dropping discounts. Instead, go directly to the retailer’s official website.
2. Use Two-Factor Authentication
Enable two-factor authentication (2FA) on your accounts whenever possible. It’s an extra layer of security that makes it harder for scammers to access your information, even if they have your password.
3. Pay with Credit Cards, Not Debit Cards
Credit cards usually offer better fraud protection compared to debit cards. If fraudulent charges are made, your credit card company can reverse them, and the money in your bank account stays safe.
4. Avoid Public Wi-Fi for Shopping
Shopping while sipping coffee at your favorite café might sound relaxing, but public Wi-Fi networks are risky. Hackers can easily intercept your data. If you have to shop on the go, use your mobile data or a Virtual Private Network (VPN) for added security.
5. Monitor Your Accounts Regularly
Don’t wait for your monthly statement to check your accounts. Log in frequently to spot unauthorized charges early. If you see anything suspicious, report it immediately.
6. Beware of Phishing Scams
Scammers often send fake emails or text messages pretending to be from well-known retailers. They’ll ask you to “verify your account” or click on a link to claim a prize. Don’t fall for it. Always go directly to the retailer’s website to verify offers.
What to Do If Scammers Steal Your Identity
Even with the best precautions, identity theft can still happen. If you find yourself in this situation, here’s what to do:
Step 1: Freeze Your Credit
Immediately contact the three major credit bureaus (Equifax, Experian, and TransUnion) to freeze your credit. This prevents scammers from opening new accounts in your name.
Step 2: Contact Your Bank or Credit Card Company
Report the fraud to your bank or credit card issuer. They can block the compromised account and issue you a new card.
Step 3: File a Report
File an identity theft report with the Federal Trade Commission (FTC). You can also file a police report if necessary, especially if creditors require one for disputes.
Step 4: Dispute Fraudulent Accounts With a Credit Repair Company
If scammers open accounts in your name, you have the right to dispute them with the creditor and the credit bureaus. We can help you with this in our Identity Theft Recovery Program.
Step 5: Monitor Your Credit Report
Keep an eye on your credit report for any unusual activity. You’re entitled to one free credit report per year from each bureau at AnnualCreditReport.com or you can pull your credit it using CreditHeroScore
How Identity Theft Impacts Your Credit Score
Identity theft can really mess up your credit in several ways:
- Fraudulent accounts: Scammers may open new credit accounts in your name, adding hard inquiries to your report and inflating your debt.
- Missed payments: If the scammer doesn’t pay the bills, those missed payments will be reported under your name, dragging down your score.
- High credit utilization: If scammers max out your existing credit cards, your credit utilization ratio (a major factor in your score) will skyrocket.
The long-term effects can make it harder to qualify for loans, buy a home, or even rent an apartment.
Final Thoughts on Tips to Keep Your Credit Score Safe
The holidays should be a time of joy, not stress over identity theft. By following these tips to keep your credit score safe, you can shop with confidence and peace of mind. And if the unexpected happens, remember—we’re here to help.
Ready to take control of your credit? Contact us today for a FREE credit evaluation and learn how we can help you repair your credit and protect your financial future.