The scariest things in October aren’t the costumes. They’re the unexpected charges, the “urgent” texts from a bank that isn’t really your bank, and the account you didn’t realize was wide open. October is also Cybersecurity Awareness Month, which makes it a great time to check on your fraud protection habits.
You can work hard to earn, save, and budget, and one scam can undo months of progress. The good news is that protecting yourself from scams and identity theft is simple, mostly free, and doable in an afternoon. Here are five steps to take before holiday shopping season kicks off.
1. Freeze Your Credit (It’s Free)
If you do only one thing from this list, make it this one. A credit freeze stops anyone from opening a new account in your name, because lenders can’t pull your report. By federal law, placing and lifting a credit freeze is free at all three bureaus: Equifax, Experian, and TransUnion.
You’ll need to contact each bureau separately. Save your login information somewhere safe, because you’ll need it when you apply for a loan, a credit card, or an apartment. Unfreezing takes just a few minutes, so a freeze doesn’t have to get in your way. If you want a refresher on how credit works, these money lessons from Experian’s #CreditChat are a good place to start.
2. Check Your Credit Reports Regularly
You can’t fix what you don’t see. Visit AnnualCreditReport.com, the official source, to pull your reports from all three bureaus for free. Look for:
- Accounts you don’t recognize
- Addresses or employers you’ve never had
- Hard inquiries from lenders you never contacted
- Late payments you know you made on time
Spotting a problem early makes it much easier to dispute. Add it to your calendar, and make it part of your fall financial audit so it doesn’t slip through the cracks.
3. Turn On Transaction Alerts and Two-Factor Authentication
Fraud moves fast, and your alerts can move faster. Open your bank and credit card apps and turn on notifications for every transaction, large or small. Thieves often test a card with a tiny purchase before going big.
Then turn on two-factor authentication (2FA) for your banking, email, and payment apps. A strong, unique password is a good start, but 2FA means a stolen password alone isn’t enough to get in. Your email account matters most here. If someone gets into your email, they can reset the password on almost everything else.
Regular alerts also help you see where your money actually goes, which makes a charge that doesn’t belong stand out right away.
4. Learn the Red Flags of a Scam
Scammers are getting better, and some messages look very real. But they almost always rely on the same tricks:
- Urgency. “Act now or your account will be closed!”
- Secrecy. “Don’t tell anyone about this.”
- Unusual payment methods. Gift cards, wire transfers, cash apps, or crypto.
- Requests for personal information you didn’t initiate, like your Social Security number or a verification code.
- Too-good-to-be-true offers, like a prize you never entered to win.
Here’s a rule worth remembering: real banks and government agencies will not pressure you to move money immediately. If something feels off, stop. Hang up, don’t click the link, and contact the company directly using the number on the back of your card or on their official website.
5. Protect Yourself from Holiday Shopping Scams
Scammers love this time of year because people are busy, distracted, and hunting for deals. As you start your holiday shopping, keep these in mind:
- Stick to retailers you know, and double-check the web address before entering payment information.
- Use a credit card instead of a debit card online. Credit cards generally offer stronger fraud protection, and a problem won’t drain your checking account while it’s being sorted out.
- Be wary of social media ads offering prices that seem impossibly low.
- Watch out for fake shipping and delivery texts. If you’re not expecting a package, don’t click.
- Avoid shopping on public Wi-Fi.
If you own a business, this applies to you too. Keeping your accounts organized helps you catch fraud faster, which is one more reason to separate your personal and business bank accounts.
Bonus Tip: Know What to Do If You’re a Victim of Fraud
Even careful people get targeted. If you think you’ve been a victim of fraud or identity theft, act quickly:
- Contact your bank or card issuer right away and ask them to freeze or replace the affected accounts.
- Place a fraud alert or credit freeze with the credit bureaus.
- Report it at IdentityTheft.gov to get a personal recovery plan, and at ReportFraud.ftc.gov for scams.
- Change your passwords, starting with email and banking.
- Keep notes of every call, date, and name. A paper trail helps.
Having a financial cushion makes recovery much less stressful. If you haven’t started one, read about building an emergency fund, and check out Mastering Financial Resilience for help bouncing back from life’s curveballs.
Being scammed is not a reflection on your intelligence. These are professionals who do this for a living. What matters is how quickly you respond.
Frequently Asked Questions About Fraud Protection
Does a credit freeze hurt my credit score?
No. A freeze doesn’t affect your score, and it doesn’t stop you from using your existing accounts. It only blocks new lenders from viewing your report until you lift it.
What’s the difference between a fraud alert and a credit freeze?
A fraud alert tells lenders to verify your identity before opening new credit. A freeze blocks access to your report altogether, so it offers stronger protection.
Is it safe to shop online during the holidays?
It can be, if you stick to trusted retailers, pay with a credit card, and avoid clicking links in unexpected emails or texts.
How often should I check my credit report?
At least a few times a year. Checking regularly helps you catch problems early.
Final Thoughts
Protecting your money doesn’t have to be complicated or scary. A credit freeze, a few alerts, 2FA, and a healthy dose of skepticism go a long way. Remember, it’s your money, and you’re the best defender it has.
Pick one thing from this list and do it today. Freeze your credit tonight, turn on your transaction alerts, or talk to a family member about the scam red flags above. Then come back and tackle the next one.
Happy Halloween. May the only thing that scares you this weekend be the candy bowl.
Resources to keep learning…
Ready to put these habits into practice? Grab the free resources to keep your finances organized, check out the Money Management Workbook or browse the shop, and join the It’$ My Money Academy for more guidance on your money journey.
I really appreciate you reading the blog every week. It means a lot. If you want more regular content in between posts, come find me on Instagram. That’s where I’m sharing the day-to-day stuff that doesn’t always make it into a full blog post.