Avoiding Holiday Identity Theft
Updated November 2, 2020 . AmFam Team
There’s nothing like the hustle and bustle of holiday shopping season! While this year you may be doing most of your holiday shopping online, it’s still important to take precautions to protect your personal information from identity thieves any way you can. Thankfully there are ways you can help safeguard your identity while holiday shopping online — or offline.
5 Tips to Avoid Identity Theft When Holiday Shopping Online
Whether using your smartphone or personal computer, there’s a lot you can do to protect your private information from identity thieves when shopping online during the holidays. Keeping your tech up-to-date with the latest security and software updates and antivirus or anti-spyware software is a great place to start.
Always using strong passwords — that combine uppercase and lowercase letters, numbers and symbols — is an easy and effective ID protection measure too. Here are more ways to protect your personal data and avoid identity theft:
1. Shop on secure websites
Make sure the URL of the websites you are shopping on begin with “https” and not just “http.” The “s” at the end indicates it’s an encrypted and secure site. Like making sure your antivirus software is updated, this is an easy way to help protect your computer from being infected by viruses or malware.
2. Stay on private Wi-Fi networks
When possible, shop online using your home’s private, password-protected Wi-Fi network. Shopping on unsecured networks like public Wi-Fi hotspots can leave your personal info vulnerable and easier to steal. Avoid using a public computer as well. If you must use one, clear your cookies and browsing history before leaving. Don’t forget to log out of all your shopping accounts for different stores too.
3. Use your credit card over debit
Choose to pay with credit when shopping online. Debit cards usually pull money directly from your bank account, so if an identity thief gets a hold of your debit card’s number and PIN, they could easily start taking your money.
When you shop with your credit card, money isn’t taken directly from your bank account, and your credit card company will usually have robust fraud protection services to help avoid identity theft.
4. Keep an eye on your bank accounts
Watch your credit card and debit card accounts closely for unfamiliar charges. Several small charges from unknown vendors can be an early sign of theft. Signing up for a credit monitoring service can be an effective way to keep you updated if there’s any changes to your credit, personal or financial information.
5. Be careful with emails
During the holiday shopping season especially, you may receive spam or phishing emails disguised as promotional deals. You might also get emails claiming to be retailers requesting you reset your password. These emails are usually attempting to get your personal data, so brush up on how to avoid phishing or delete them. And remember, a good rule of thumb is never open attachments or links from unknown sources.
5 Tips to Avoid Identity Theft When Holiday Shopping in Stores
Like shopping online, always prioritize protecting your personal information when holiday shopping in stores. One of the best ways to do so is guarding your identity by keeping personal belongings like your wallet, phone or purse in your possession at all times.
This year, remember to make personal safety is a top priority as well — so be sure to wear your facemask and social distance from others when in public. Choosing contactless pay options when possible to avoid direct personal contact is a good idea too, and it’s typically a payment method with higher security. And don’t forget to bring portable hand sanitizer, and wear disposable gloves too.
Here are more ways to avoid identity theft while shopping in stores this holiday season:
1. Only bring essentials items
When shopping in person, leave any unnecessary ID and credit cards at home. This way you’re less likely to misplace, drop or have something stolen that contains your personal information.
2. Watch for prying eyes
Always be cautious when taking out your credit cards or other ID cards that display your personal information. Shield your credit card info or PIN number with your hand while making a transaction, and never give your card to someone else while checking out.
3. Be cautious of card skimmers
A “skimmer” is a card reader that records data off a card’s magnetic strip. Skimmers make it easy for identity thieves to create cloned cards or go into your bank account to steal money. Skimmers can be difficult to identify, but they typically look like bulky, colored plastic inserts placed on top of a credit card reader’s slot. Always be cautious of credit card readers and keep an eye on your card at all times.
4. Use safe ATMs
When withdrawing money, always use a bank affiliated ATM. Machines from banking institutions are typically well-maintained and more trustworthy than others, which may make them less-likely to be tampered with or fall victim to a skimmer. Always use ATMs that are in secure locations with video surveillance as well.
5. Shred any unneeded personal information
Keep your all receipts in a safe location, but safely dispose of any documents with personal information on them. Credit card statements and bills may contain your account number or home address, so prevent these from getting into the hands of identity thieves by using a paper shredder once you’re done with them.
With these tips in mind, have fun finding the perfect gifts for your friends and family and enjoy your holidays!
Get Protected With Identity Theft Insurance
Following these and other data protection tips can help you avoid identity theft this holiday season. To continue proactively protecting your personal information, consider identity theft insurance. This added protection helps cover the costs related to recovering your stolen identity and credit rating if you fall victim to identity theft.
Reach out to your American Family agent (Opens in a new tab) to find out how you can add identity theft insurance to your homeowners or renters policy.
This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.
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- Saving for a House
There are a few defining moments in our lives. For some, it’s the realization that buying that first home is within reach, both financially and emotionally. It’s a big step, and it’s one that’s built into the American dream. And if you’re left wondering how much money you should save before buying a house, you’re not alone. These costs can add up quickly.
After you’ve made the big decision to start shopping for a home, you might be surprised to find that coming up with the cash down payment is only one of several financial hurdles you’ll need to clear. Exactly how much you should save for a house depends on a number of factors, like the value of the home you’re targeting and the amount of money you intend on pushing into your down payment.
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After college, life moves fast. You get your first big job, move out of your parents’ house and start a whole new life on your own. For most people, this also means paying off student loan debt from your college tuition. Having this debt may make big milestones like buying a house seem far off, but there are ways to make the leap from renter to homeowner even if you have student loans. So can you get a mortgage while also paying off student debt? Or should you wait to pay it off before you buy a house?
Every situation is different, so it’s important to do the right research and choose the best option for you. Luckily, we’ve done some of the breakdown for you to help you decide whether to pay off your student loan entirely or buy a house.
Can Student Loans Affect Buying a House?
Typically, student loan debt doesn’t prevent you from getting a mortgage. The biggest thing to note is that student loan debt does influence your debt-to-income ratio, which is a factor lenders consider before giving you a loan. It can also affect the interest rate you pay on your mortgage.
Buying a house with defaulted student loans
If you’ve defaulted on your student loans, it’ll be more difficult — but not impossible — for you to get a mortgage. Because defaulting negatively affects your credit score, lenders will be less likely to want to give you a loan or will charge a much higher interest rate on a loan.
Getting a home loan with student loan deferment
If you’ve deferred your student loans, this usually won’t affect your chances of getting a mortgage. Just be sure to consider how the future estimated payments will factor your debt-to-income ratio. Some types of mortgages may reject applicants with deferred loans, so do your research on the different types of mortgages before shopping.
Should You Pay Off Student Loans Before Buying a House?
Buying a house is expensive, there’s no doubt about that. It can seem smart to hold off on house shopping while you still have student loan debt, and it can be even more difficult to save for a house if you’ve got a high debt-to-income ratio. But if you have enough income to handle the payments for both, you may want to consider investing in your first home.
Signs You Should Pay Off Student Loans
When considering whether to pay student loans or save for a house, there are a few factors that can help you decide if paying off your student loans should be a priority.
Your debt-to-income ratio is too high
If the amount of money you bring in monthly or yearly is almost the same as the amount of money you pay out in debts — like student and car loans or credit cards — it may be best to pay down your debt before buying a house.
You’ve defaulted on your loans
Defaulting on your loans has a severe negative impact on your credit score, which tells lenders that you’re a bigger risk to take on. Work on improving your credit score before shopping for a mortgage.
You’re struggling to make payments
If you feel like you’re living paycheck to paycheck or struggling to make payments on your loan every month, it’s best to hold off on saving for a house. Need help keeping track of your student loan payments? Try our student loan payment tracker to get organized.
You haven’t saved for a down payment or emergency fund
Before you start picking out which houses you want to tour, you should take a look at your savings. If you don’t have enough for a 5 to 10 percent down payment or enough as an emergency fund for home expenses — like a broken dishwasher or damaged roof — take more time to put money away for your first home.
