Why Identity Theft Peaks During the Holidays (And 5 Steps to Prevent It)

 

The holiday season is a time for joy, gift-giving, and time spent with friends and family. It’s also, unfortunately, a period when identity thieves ramp up their efforts. Many people shop online more often, enter personal details on new websites, and click on links they might usually avoid. This environment can increase the chances that your sensitive information falls into the wrong hands. 

Understanding these risks and taking steps to protect yourself can help you keep your personal details safe while enjoying the festivities. Keep reading to learn how holiday activities put your identity at risk and what you can do to keep your information secure.

How Holiday Activities Expose Your Personal Information

The holiday season is full of cheer, but it also comes with risks as everyday activities require you to share personal information. From online shopping to social media sharing, small oversights can expose sensitive data to cybercriminals and identity thieves.

Now, let’s break down specific activities that can put your information at risk and explore actionable ways to protect yourself:

1. Online Shopping on Unsafe Websites

Deep discounts and flash sales are a holiday staple, but not all websites are trustworthy. Fake sites often mimic trusted brands to trick you into sharing sensitive details like credit card numbers. According to the FBI, holiday scams cause losses exceeding $300 million annually, with fraudulent e-commerce sites being a major contributor.

Before buying, check if a website is legitimate. Look for HTTPS encryption, contact information, and reviews from independent platforms. If a deal feels suspicious, it’s safer to shop elsewhere.

2. Sharing Personal Details on Social Media

Holiday-themed contests and quizzes often ask for personal details, like your name or birthday, which criminals can use for fraud. Public posts about travel plans or family connections can help hackers guess passwords or answer security questions.

Review your social media privacy settings and avoid posting sensitive information publicly. Even festive sharing should be kept among trusted connections.

What are the Risks in Face-to-Face Interactions

Face-to-face interactions during the holidays may seem safer than online activities, but they come with their own set of risks. This holiday season, here are the two common scenarios that require extra vigilance and how to handle them safely:

1. Charity Scams

People feel generous during the holidays, which inspires fraudsters to pose as charity workers. They’ll approach you at stores, outside community centers, or even door-to-door. Their story might sound emotional and urgent, pushing you to donate right away. While many real charities do good work, a scammer might be after your credit card number, address, or other identifying details.

Before donating, request official information and look up the group online. Real charities don’t pressure you to hand over sensitive details. Take a moment, do your homework, and only share what’s absolutely necessary. That bit of caution helps ensure your goodwill isn’t exploited.

2. Store Card Applications

Retail workers often encourage you to sign up for store cards to get discounts. To do this, you usually need to share personal data, including your Social Security Number. If the retailer’s process isn’t secure, that information may end up in the wrong hands.

Instead of rushing into these offers, ask how your data is protected and stored. If they can’t answer, you have the right to walk away. Sometimes, the holiday discount isn’t worth putting your identity at risk.

Identity Theft from Digital Risks

The convenience of online shopping comes with heightened digital risks, especially during the holidays. Cybercriminals take advantage of the increased activity, exploiting vulnerabilities in retail systems and preying on distracted shoppers through scams.

Here are the two prevalent digital threats and how to protect yourself:

1. Data Breaches in Retail

The holiday rush puts pressure on retail systems. High order volumes and seasonal staffing changes sometimes lead to weak security practices. Hackers use this time to attempt data breaches, hoping to grab customer records, payment information, and addresses.

Regularly review your banking and credit statements. Use transaction alerts through your bank or credit card provider. If you spot suspicious activity, act quickly. Consider using verification tools to check if your personal data or SSN has been used without permission. A little vigilance goes a long way in stopping thieves.

2. Phishing Emails and Fake Delivery Notifications

Fake emails or email scams mimic major online retailers or shipping companies are common during the holidays. They might say your order is delayed and require verification, or that a package needs address confirmation. These urgent-sounding messages often link to fake sites that request your login credentials or financial details. It’s easy to fall for these tricks when you’re expecting multiple shipments.

Always inspect the email sender’s address, and don’t click embedded links if unsure. Instead, go directly to the retailer’s official site or use their app. Confirming order status through reliable sources helps you avoid phishing schemes. Using tools to check the legitimacy of an email sender can also offer peace of mind.

5 Steps to Reduce Your Risk of Identity Theft

Taking proactive steps during the holidays can greatly reduce the chances of becoming a victim of identity theft. These five straightforward practices safeguard your personal information from both digital and physical threats.

1. Use Secure Payment Methods

Stick to payment options that protect you. Credit cards often have fraud protection, and virtual wallets don’t expose your direct bank details. Prepaid cards can limit potential damage since they hold a set amount. Avoid debit cards whenever possible for online purchases since they link straight to your checking account. If a site or vendor seems sketchy, trust your instincts and shop elsewhere.

2. Monitor Your Financial Accounts Regularly

Holiday excitement and busy schedules make it easy to ignore your statements. Check your accounts at least once a week during this season. If your bank offers mobile alerts for new charges, enable them. Spotting odd charges early helps you resolve issues before they escalate.

3. Be Careful About Sharing Your Social Security Number

Not many purchases require an SSN, so if someone asks for it, question why. Confirm that the requester has a valid reason and a secure way of handling your information. Being cautious with your SSN protects you from long-lasting damage.

4. Research Unknown Businesses

Seasonal pop-up shops or new online retailers may offer great deals, but it’s wise to confirm their legitimacy. Look up the company’s ownership records or run a background check on the business. Honest sellers understand the importance of trust and won’t mind if you take a day to verify them. Ensuring a store’s authenticity helps you shop confidently.

5. Protect Your Home and Mail

Mail theft is another holiday risk. Packages and credit card statements might sit in your mailbox, giving thieves easy access. Use a locked mailbox, or consider picking up sensitive documents directly from the post office. Simple safeguards like these reduce the chance of anyone stealing your personal data right from your home.

What to Do if You Suspect Identity Theft

Acting quickly is crucial when you suspect identity theft. Taking decisive steps can help you regain control and prevent further misuse of your information. Here are three actions to prioritize:

1. Freeze Your Credit. If you suspect wrongdoing, contact the three major credit bureaus. A credit freeze prevents new credit lines from opening in your name. Thieves can’t create fake accounts if credit reporting agencies block them. You can lift the freeze later when you feel secure again. Taking this step stops the problem from getting worse.
2. Use Background Check Services. Running a background check on your name can help uncover unauthorized activity. Using a Background Check tool, you can perform a self-check by entering your information into the search fields. The tool searches public and private records for any details tied to your identity. This process allows you to review results for discrepancies, such as unfamiliar addresses or aliases, that could signal potential misuse of your personal data.
3. Use Reverse SSN Searches. If you worry your Social Security number has been misused, tools like Reverse SSN Lookup allow you to check activity and can bring clarity. They help you discover if anyone is using your SSN for unauthorized purposes. With this information, you can decide how to proceed—whether by alerting authorities, notifying financial institutions, or taking other corrective steps.

Final Thoughts

Preparing yourself for these risks means you can enjoy the holiday season without unnecessary stress. Taking a little extra time to secure your personal information protects your finances and peace of mind. It’s about staying in control and ensuring your focus remains on what truly matters—spending time with loved ones, celebrating traditions, and creating lasting memories.

The holidays should bring joy, not anxiety over identity theft. Remember, your personal information is yours to protect. You can keep the season cheerful and secure by staying vigilant and making smarter decisions. Take charge, share these tips with those you care about, and keep the holiday spirit alive. The best gift you can give yourself this year is the confidence that your personal information is safe and sound.