Black Friday and Cyber Monday

With Black Friday today and Cyber Monday fast approaching, consumers are entering into the most active spending period of the year. Reinforced by the soft economy, this is "high season" for identity theft with identity thieves seeking to take advantage of shoppers. Identity theft generally rises during the holidays because thieves assume that consumers aren't paying attention to their credit card purchases, debit card purchases, receipts etc. as closely.

Retailers on Black Friday - the day after Thanksgiving and the unofficial beginning of the holiday season on which retailers first start to turn a profit and are "in the black" - rake in over $2 billion in a single day, according to the NPD Group.

Consumers numbering over 72 million collectively spend about $700 million, according to the National Retail Federation, on the Monday after Thanksgiving, a day known for exclusive online sales that has recently been deemed Cyber Monday.

That enormous pool of shoppers, however, serves as a breeding ground for identity theft. Last year, consumers reported a loss of $1.2 billion to fraud and identity theft, according to the Federal Trade Commission, much of those losses coming during the holiday season.

As a Certified Identity Theft Risk Management Specialist, I am offering basic tips to help consumers avoid putting their identity at risk during the 2008 holiday season. In addition to watching budgets this season, consumers also need to be vigilant in the face of possible identity theft.

• Use credit cards instead of debit cards: Under the Fair Credit Billing Act, Credit Cards provide consumers protection again fraudulent charges and your liability is limited to $50. You also have the right to dispute charges and withhold payment during investigation. However, debit cards are entirely different. Although they market themselves to deliver the same protection, they are not required to by any law. Bottom line, your liability for fraudulent charges is the entire amount in your checking account as well as the credit line you have been authorized to receive.
  

• Use a single credit card to consolidate your purchasing: The more credit cards open in your name, the greater the risk that a thief will obtain the account information for one (never mind that having numerous cards with big lines of credit can be a bad temptation and can actually drag down your credit score--even if you don't have balances). It's also easier to monitor a single statement for signs of fraud, and you won't incur the annual fees associated with having multiple cards. Make sure to cross-check all your receipts against your statements to see that they match.
  

• If you write "SEE ID" on the back of credit cards: Make sure you also sign the card. If you don't sign the back, you may violate the issuers agreement and you will be liable for any thefts.

• Shop on secure sites and be wary!: While the majority of identity fraud occurs offline, identity theft is also a problem online. You must exercise caution when shopping on the web. Stick to sites that you know are legitimate, and if you are trying a new site for the first time, here are a few things to look for: the URL should have "https" in the shopping cart; there should be a lock icon on the bottom right hand side of the window and look for icons that indicate site safety (the Better Business Bureau, VeriSign and Hacker Safe icons).

• Watch out for "phishing" and "vishing" scams: These scams can be a real problem, as identity thieves try to play on people's generosity during the holiday season. Phishing emails often take the forms of requests purporting to be from a bank or credit card company; they ask you to "verify" account information such as login and password or they request a donation or assistance for the less fortunate during the holidays. Vishing scams--which involve fraudulent calls—seek to exploit consumer concerns over fraud by seeming to offer fraud prevention assistance. The bottom line: no legitimate vendor will ask for your login and password via email or on the phone.

• Be careful when using ATMs: Only use ATMs with monitoring cameras, such as those in bank lobbies. Avoid kiosk ATMs, those freestanding units often do not have cameras and are statistically more likely to be infected by skimmers (electronic devices that allow thieves to record account and PIN numbers). "Shoulder Surfing" can also be a problem at a crowded mall. While you assume that the man behind you is uncomfortably close because of mall crowding, he may actually be looking over your shoulder trying to get your login.

• Place fraud alerts to prevent new credit card accounts from being opened: Free fraud alerts placed on your credit report are good for 90 days (if you can demonstrate that you've been an identity theft victim, they can be set for 7 years) and, in combination with other proactive measures, can be used to help to prevent identity theft.
  
  An Identity is stolen every 2-3 seconds in the U.S. If you would like to educate yourself further about the fastest growing crime, which has now exceeded drug trafficking for revenues, then visit www.stopidtheftcrime.com
  

  Identity Theft Shield by Kroll, Inc., the largest Risk Consulting firm in the world and Pre-Paid Legal Services offer the best suite of services to help consumers safeguard their privacy and identity and offer restoration if your identity is compromised. Restoration is important because if you have your identity compromised, on average it will take you 600 hours and $6000 to fix the problem yourself. This is according to President Bush's Identity Theft Task Force in their recent report.

  Pre-Paid Legal is a 36 year old NYSE company currently traded at over $40 (as compared to the Big 3 under $2). They have 3 former Attorneys General on their advisory board and are endorsed by the President of the US Chamber of Commerce. They offer plans for individuals and businesses up to 99 employees.

  Please let me know if you have any questions or if you’d like more information. Thanks for your time and a Happy and Blessed Thanksgiving to you and your family.

  Joe Nollet, CITRMS

  (909) 208-3728

  To learn more about Identity Theft and what to do if you are a victim, visit www.StopIdTheftCrime.com and subscribe to the newsletter to obtain your free 46 page eBook "Fighting Back Against Identity Theft".
  
  Remember, estimates are that every 2-4 seconds an Identity is compromised. Why take chances? Why not protect yourself and your loved ones with the best suite of services provided (including restoration) by the best NYSE company in the field? Educate yourself and visit the shameless plug below or call me at (909) 208-3728!
  
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