As the song goes, the holiday season is "the most wonderful time of the year." It is a time filled with festivities and holiday parties, and the shopping season is in full swing.

Few people know that it is also one of the most dangerous times of the year. Holiday shoppers are at risk from identity thieves and often fall into financial debt.

According to the U.S. Department of Justice, about 8.6 million households nationwide had at least one member age 12 or older who experienced one or more types of identity theft victimization in 2010. Of those, 3.8 percent experienced the misuse of an existing credit card. Victims of identity theft suffer drained bank accounts, destroyed credit, and even criminal charges for crimes committed in their name. And it can happen to anyone, military or civilian.

"We all have the chance of becoming a victim of identity theft," said Naval District Washington (NDW) Fleet and Family Support Center Financial Management Advisor David S. Rowe. "One of the main things you can do to prevent identity theft is to check your credit report. Check it at least once a year."

Rowe recommended using credit cards that are attached to an individual's checking or savings account when making store or online purchases, because most banks have security features in place to protect the customer's identity.

According to the U.S. Navy Safety Center, identity thieves use a variety of methods to gain a victim's information without them knowing. One tactic is "skimming," where a criminal steals a victim's credit or debit card numbers by using a special storage device when processing your card during a regular transaction. Another high-tech practice of identity thieves is "phishing," where a criminal pretends to be a financial institution or company that sends spam or pop-up messages so you will reveal your personal information. But low-tech means such as changing a victim's address through a change of address form or simply stealing a victim's wallet can both have the same result. As concerning as identity theft can be, there are steps that shoppers can take to ensure that their personal information and finances are not stolen through identity theft.

"Although nowadays a lot of credit cards have the chips in them, make sure you're looking over your shoulder to make sure nobody is looking at your pin number when you enter it to make the payment at the register," said Rowe. "Scammers also use devices that allow them to walk by a victim and pick up their card information as they pass and the victim does not even know they had their information stolen."

He also advised to be cautious when shoppers are out and about and anywhere they may have to use their credit or check cards. He also warned that ATM machines are being tampered with devices that can steal users' pin numbers by recording it with a magnetic strip recording device on top of the real ATM mechanism.

Rowe spoke about the importance of planning ahead and spending within your means when it comes to holiday shopping.

"If you haven't been saving up for the holidays, go ahead and do your holiday shopping but stay within your budget," said Rowe. "Watch those deals that some electronics and furniture stores put out that say 'buy now and pay later' because if shoppers don't make regular payments during the no interest period and then can't pay off the loan, they're stuck with all that backed up interest from those six months to a year that they were given to pay off the item without interest."

By staying vigilant, budgeting, and stay within means, shoppers can make sure their identity and their pockets stay safe.

For more information on identifying and preventing identity theft or to file a claim visit http://safetycenter.navy.mil/ and http://www.ftc.gov/


For more tips and training about financial management contact the Fleet and Family Support Center at 202-404-7398

For more news from Naval District Washington, visit http://www.navy.mil/.