Avoid Identity Theft While Holiday Shopping

The holidays are just around the corner. I know, I can't believe it either. Wasn't it just summer? Regardless, it is that time of year when gift buying is in vogue and that means one has to be cognizant of potential identity theft problems.

Having your identity stolen is just brutal. The theft happens electronically most of the time, which means there is a lag time till you realize what is going on. Sooner or later, however, you'll get a call or some letter that is simply baffling. In it, you'll see that you supposedly owe some huge debt and are delinquent in making payment. At that point, you begin a Battan death march through red tape land as you try to save your credit and good name.

The best way to deal with identity theft is to simply avoid it. This means taking some basic steps. Most of us have been trained to buy things with plastic. If you can, go with cash instead. Most of us can't, so at least try to use only credit cards. Debit cards have much less protection, so avoid using them with retailers and online like the plague. You are just asking for problems.

The next step is to pay attention to your credit card bills. If you do not recognize a charge, call the creditor and find out what it is. If it is something fishy, immediately call your credit card company and tell them as much. They'll put a stop on the charges and often issue you a new card. You'll also want to check your credit report to watch for any unauthorized charges.

Receipts can be a real issue during the holidays. Receipts can be gold mines for identity thieves. Ideally, you should shred them. That is pretty difficult during the holidays, however. What if one of the people you give a gift to wants to return it or get a different size? They are going to need receipts! Still, you can usually destroy them a few months down the line.

You could still become a victim of identity theft even if you follow these guidelines. How so? The theft in these cases often happens at the retailer level such as when TJ Maxx and other businesses under the TJX brand suffered a massive hack into their financial system. In such cases, there isn't really much you can do, so just keep an eye on those credit card statements.