The best holiday gift you can give yourself is also the cheapest: protecting your identity.

‘Tis the season for family, food, gifts, and theft.

For ID thieves, the holidays are prime time for profits. Many more of us are shopping online, and we’re distracted by family gatherings and holiday parties; so we’re not as diligent as we might be otherwise.

If you’re going to give yourself a gift this holiday season — and the National Retail Federation says 57 percent of us will — let me suggest something that will last all year long. While the NRF says we’ll spend $127 on ourselves this holiday season, my suggestion is free. It also takes only a few minutes.

How to protect yourself from identity theft

Identity theft is such a pervasive problem that has dedicated an entire section of our site to an ID Theft Learning Center. There you’ll find a dozen easy tips for keeping your personal information out of the clutches of thieves.

That’s just the beginning, however. Few people were aware that October was National Cyber Security Awareness Month, which means the awareness failed. Still, researchers used that awareness attempt as an excuse to poll Americans on their thoughts and practices about securing their identities. What struck me most about these polls: Most Americans blame everyone else for ID theft except themselves.

Let’s take a closer look at what they don’t do and should do about holiday ID theft.

Changing passwords

Don’t wait for the new year, make a holiday resolution: Change your passwords now.

“Almost 30 percent of the interviewed North Americans reuse or use slightly different versions of their passwords for all their accounts,” declares antivirus firm Bitdefender. This is crucial because if ID thieves hack into one of your accounts and your password is the same for others, you put more of yourself at risk.

Of course, keeping track of a dozen passwords is a real pain. There are “password managers,” which are programs that keep track of all your logins so you don’t even have to know what the passwords are — except the one to that program. There are free versions, and a popular one is LastPass, but you’ll need to pay $12 a year for unlimited mobile access.

Make sure you are doing all you can toprotect yourself online, check your status and report if you have any red flags

Using antivirus software

In that same Bitdefender survey, only 67 percent of respondents said they used antivirus software. This is particularly disturbing because there are highly regarded free protective programs out there. I rely on PC Mag’s annual list, and here is The Best Free Antivirus for 2014.

One popular company offering both free and paid protections is called Avast, and it just released a survey showing, “Four out of five Internet-connected households in the United States are at risk of getting attacked through their wireless router.”

If you don’t understand what a router does, and how it can help or hurt you, Avast and other companies offer free protection for that particular problem. Of course, they want to up-sell you into premium packages, but both the free and paid versions work.

Staying calm if the worst happens this holiday season

Last month, yet another survey revealed, “One-third of American adults say they have had their identity stolen.” Even if you take every precaution, bad things can befall good people. Too often, I’ve witnessed extreme reactions: Either victims do nothing, or they try everything. The first just makes the problem worse, the second wastes a lot of time and doesn’t make it better.

What should you do? Know how to recognize the signs of identity theft and how to protect your identity from a data breach. If you feel vulnerable, it might be worth pursuing a credit monitoring service. Get more details in our Education Center.

Shop safe this holiday season!

Howard Dvorkin is a CPA and chairman of, an educational resource for those who want to conquer all forms of debt in their lives.

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About the Author

Howard Dvorkin, CPA

Howard Dvorkin, CPA

I’m a certified public accountant who has authored two books on getting out of debt, Credit Hell and Power Up, and I am one of the personal finance experts for I have focused my professional endeavors in the consumer finance, technology, media and real estate industries creating not only, but also Financial Apps and Start Fresh Today, among others. My personal finance advice has been included in countless articles, and has appeared in the New York Times, the Washington Post, Forbes and Entrepreneur as well as virtually every national and local newspaper in the country. Everyone should have a reason for living that’s bigger than themselves, and besides my family, mine is this: Teaching Americans how to live happily within their means. To me, money is not the root of all evil. Poor money management is. Money cannot buy happiness, but going into debt always buys misery. That’s why I launched I’m glad you’re here.

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