Identity Theft - What If I’m Not Really Me?

This weekend, my wife told me how many shopping days there were until Christmas.  My initial instinct was to spray her with the garden hose, an inclination that I fortunately suppressed.  I love the holidays, but the pressure can really build, can’t it?  As credit cards really start heating up from multiple uses, so does cybercrime.  The last couple of months in the year are when identity theft, credit card fraud, and other financial scams hit their peak.

You can do quite a bit to reduce the chances of being a victim, and you probably already know most of them.  Use strong, complex passwords; don’t use the same password for multiple accounts.  Only shop on familiar websites.  Use multi-factor authentication.  Definitely don’t click on links in emails without being very sure of the sender.

Scammers have gotten awfully clever, though, so what if you do happen to get snagged by one of them?  If hackers can penetrate places like Target, Bank of America, and even the Pentagon, then what can you do?  Well, there’s insurance for this issue, and the good news is that it’s usually very inexpensive.  Companies that sell this kind of protection nearly always provide a suite of other services along with your policy.  Often, you’ll only need to call one number to take care of the response, freeze your credit, lock down your credit cards, and recover lost funds.  The cost should run between $25 and $60 a year, depending on the level of protection required.  

There are dedicated providers such as Aura and LifeLock that provide coverage. Credit agencies, such as Equifax, provide these services as well.  If you have a premium-level credit card, you might have protection options (but be sure that the protection applies to more than just that one account).  Your bank may have options, and many homeowners insurance providers offer add-ons for identity theft.  Before you pull the trigger on any of these options, it’s important to read and understand the terms of what you’re buying.  Granted, it can be daunting to pore through a bunch of detailed language. However, you could be wasting money if you don’t know what you’re buying. Talk to your banker, insurance agent, or someone else who can help walk you through the process.  

And, finally, don’t go helping any Nigerian princes with their banking needs.