Why You should Shred your Mail and Documents

Identity theft is rampant. It seems that everywhere you look, somebody has had their identity stolen. Just recently, I saw a news story on the Orange County news about a pair of individuals that were going around to mailboxes and stealing all of the mail.

Due to all of the incidents of identity theft, you have to protect yourself at all times. There are many things you can do to protect your identity, including, (1) subscribing to a credit card monitoring service (you will get alerts if there has been a change to your credit report); (2) setting purchase limits on your credit cards (this means that you will be personal notified and have to give approval for any purchase over a set amount of dollars); and (3) you can safeguard your personal information. This list is not exhaustive.

One of the easiest and most effective ways to safeguard your information is to shred any mail or document with your personal information on it, before you throw it away. Many people get credit card offers, bank statements, and other pieces of mail that contain large amounts of personal data. People generally look at the piece of mail, and subsequently throw it away. The problem with this is that many identity thieves search through trash cans and steal people’s mail in order to gather enough personal information to steal that person’s identity. Know that it does not take that much information to steal an identity.

By running all of your mail or documents through a cross cut paper shredder (which are relatively inexpensive and can be purchased at any office supply store for around $30-$40) your mail and documents become a mass of confetti that making it near impossible for an identity thief to get information off of these documents.

Protect yourself from the frustration that is identity theft. The best way to do this is by limiting the opportunities an identity thief has to steal your identity. A simple as it may be, shredding your mail and documents through a cross cut paper shredder is a very simple, effective way to accomplish this task.

Credit Card Safety: How to Check your Statements

Checking your credit card statement is an important practice to establish. Many times, people just look at the minimum amount due or the balance and pay that amount. The problem with this is that they may be paying for a charge that they did not make or that was incorrectly calculated.

I have a story for example purposes: many quick cafés and small coffee shops have a small device that they use to swipe your credit or debit card to pay for your purchase. You may have noticed that some of these machines require that the employee type in the amount to be charged. The coffee shop I was at had one of these machines. My total was $6.07, however, the coffee shop employee accidentally added a zero to the end of my total. Therefore my $6.07 charge became $60.70. Luckily, I caught this error when I went to sign the receipt. The problem was immediately handled, however, had I got my credit card statement and just decided to pay the balance without looking at the charges, I would have paid about $54 more than I should have.

The point is, mistakes happen. Therefore, you should always check your credit card statement to make sure that all of the charges that appear on your statement are legitimate.

Credit Card Safety: Is your Number on that Receipt?

Many merchants (including retailers, restaurants, grocery stores, etc) have fixed what used to be a regular practice. Not too long ago when you used your credit or debit card to pay your bill, your entire credit card number or debit card number (as applicable to the situation) would appear on both the merchant’s receipt and the customers copy.

Many people may not see a problem with this. However, if you think about it, many of us just toss our receipts into the trash when we get them. With the rise of internet banking (which automatically keeps track of your debits and credits on your accounts) many people do not know how or just do not balance their checkbook. As such, there is no need to keep your receipt. But what if an identity thief happened to find a receipt in the trash and your entire credit card number was on the receipt? Would you care? You should care because a lot of damage can be done with just a credit card number.

As I mentioned, many merchants have fixed this problem by only putting the last 4 numbers of your credit card number on the receipt. The other numbers are replaced with an “x.” However, if you use your credit card at a place that does not “x out” your credit or debit card numbers, make sure you shred your receipts in a cross cut shredder (after you no longer need them) before disposal. By doing this, you will limit the possibility of somebody stealing your identity.

What to do if You Think Your Credit Card Number Has Been Stolen

If you think you credit card number has been stolen, the first thing you should do is make sure that your damage is minimized. Immediately go online or call your credit card company and check what recent charges have been made on the card. If no charges have been made, but you truly believe that your credit card number has been stolen, you are better safe than sorry. Have the credit card company deactivate your credit card. After this is done you should start the process of getting a new card from them.

If you check your account online or through a phone call to the credit card company and you discover a charge on your account that is not yours, you should immediately inform the credit card company that your credit card number has been stolen. Second, you should tell the credit card company to deactivate the card. After that you should dispute the charges as fraudulent and seek to have them removed from your statement so that you are not liable for the charges. Additionally, you should begin the process of getting a new card from the credit card company.

The best way to prevent theft of your credit card number is by making sure that any paper you discard does not have your credit card number on it and that if a paper does have your credit card number on it, that the paper is shredded by a cross cut shredder before discarding it.

Protect your credit card number and you can avoid the big headache of fixing this kind of problem.

Credit Card Safety: What to do if Your “Bank” Calls

A very common technique utilized by an identity thief is to call you pretending to be an employee of your bank. These con artists usually make up a story about the bank losing your information and that he/she needs you to verify your bank account by telling him/her your account number, full name, social security number, and other personal information. The unsuspecting victim complies with the request hoping to solve any problems the bank is having. Unfortunately, that person is about to become another statistic in the growing number of identity theft cases.

Your bank, or any legitimate bank for that matter, will never call you and ask for your personal information. Think about it logically; if they had your phone number and name and knew you were a bank customer, why would they need your personal information? Do not fear hanging up on these criminals!

Many people fear that it really is their bank calling and that if they hang up on their bank, something bad will happen. Listen, nothing is going to happen if you hang up on your bank. It is not like you are going to get a letter the next day telling you your account has been closed due to your telephone rudeness. The point is, do not be fooled by these con artists.

Always remember (absent being inside the bank opening a new account), a bank will never ask you for your personal information! It is that simple. If you truly feel that it is your bank calling and that there really is a problem with your account, get the caller’s name and call station location. That same day (or the next day if the bank is already closed) go down to your local branch and tell the teller the situation. If the teller checks your account and everything is fine, then you know that you just prevented an identity thief from claiming you as his/her next victim.

Always look for subtle signs that an identity thief is trying to steal your identity. For example, a call after regular business hours; a “private number” showing up on your caller id; or the caller not be able to tell you what is wrong with your account are all signs of an identity thief attempting to steal your identity. Like I stated above, you would much rather be safe than sorry in these kinds of situations, therefore, error on the side of caution and never give out your personal information over the phone or through the mail.

Credit Card Safety: Should Sign Your Card?

When you first get a credit card, there is a signature strip along the back of the card. Most of the time, the credit card company from which you received your card will instruct you to sign your card immediately. I do not really believe that signing the back of a credit card adds any extra security.

First of all, unless you use a certain kind of pen, your signature usually rubs off within a relatively short amount of time. Therefore, you have to keep tracing over your own signature so that the signature strip does not look like a jumbled mess.

Second, by signing the back of the card, you are giving would-be identity thieves a sample of your signature. Most retailers only briefly look at your signature, if at all. If the signatures look even remotely similar, no questions are asked. Therefore, I feel that by signing the signature line, you are unintentionally helping an identity thief steal your identity.

Third, as briefly stated above, most retail employees do not even look at your signature line. However, many do ask for you id. Therefore, signing the back of your credit card is usually a waste of time.

Instead of signing your name to the back of your credit card, you should print the words “SEE ID” in all capital letters. If the retail employee happens to look at the back of your credit card to match signatures, they will be instructed to ask for your id and match the signature on your government issued identification. This is helpful because now the employee can check your information against the credit card and can match your identification. Additionally, by placing those words on the back of a credit card, you are making it harder for an identity thief to steal your identity. Printing the words “SEE ID” on the back of your credit will not stop all attempts of identity theft. However, it will make it harder for the identity thief and will therefore, hopefully act as a deterrent. That is all you can really ask for in this day and age.

If you want to sign the back of your credit card, do what you feel will protect you against identity theft, however, as I stated above, I believe that signatures on the back of a credit card are ineffective and, at worst, help an identity thief accomplish his/her goal.

A Basic Guide to Credit

A credit guide can be summed up in three steps: (1) establish it; (2) maintain it; and (3) use it responsibly. There is nothing easier. This is the shortest way to credit success and also happens to be one of the best plans you can follow.

(1) Establish It

A person that tells you to never get a credit card is giving you bad advice. It is that simple. Despite what some people may think about credit card companies or credit in general, the fact is that we live in a time when a credit score is a powerful financial asset. Becoming monetarily successful is difficult enough without cutting off a significant financial asset. Establish credit by getting a low interest rate credit card.

(2) Maintain It

Many people have no idea what is in their credit report. Always do monthly checks of your credit reports in order to prevent identity theft. Additionally, you should check your credit reports monthly in order to make sure that no inaccurate information exists. Inaccurate information will affect your credit score.

(3) Use It Responsibly

This is the most important step. Credit is a privilege, not a right. Do not misuse your credit and you will have nothing to worry about. Do not charge something unless you have the money to pay it off; a credit card is not an alternative to lack of cash! Pay more the minimum balance in order to minimize interest payments. If you use your credit responsibly, you can always negotiate with your credit card company for a lower interest rate and a higher credit limit.

Following these three easy steps is the most basic and most successful guide to credit. In sports, the best teams are the ones that do the simple things well; the same is true in credit.

What to Do If You Have Lost Your Credit Card

Most of us carry our credit cards in our wallets or purses. What happens if the wallet or purse is lost or stolen?

First, as soon as you notice that your credit card has been lost or stolen, immediately call the bank that issued the card and report that the card has been lost or stolen (based on your situation). The effect is that the bank will put a hold on your card to prevent any subsequent purchases. Additionally, if your card has been used since you noticed its disappearance, most credit card companies will reimburse you for these fraudulent charges.

Second, find out the procedure for getting a new card from the bank. It may require some paperwork, but it is worth it to prevent fraudulent charges and to obtain a new card. If your card is stolen, you may have to file a police report in order for the bank to proceed with your request.

Third, if you use that card to auto-pay certain bills, you need to call those companies and notify them that your card has been stolen or lost and that you need to switch the account to another card (at least until you get the new card).

At this point there is not much else that you can do. I know it is frustrating and that you feel violated, however, as long as you notify your credit card company, initiate the process to get a new card, and notify any companies that auto-bill that card, you have solved the problem. One of the main things you should inquire about before you get a credit card is the procedure for disputing fraudulent charges. Make sure that you are not liable for these charges and that the dispute procedure is easy. Other than that, there is not much else you can do.

Protecting Yourself Against Credit Card Fraud

Identity theft has hit epidemic proportions. This used to be a random occurrence, but with the rise of internet banking, debit cards, and other electronic cash alternatives, identity theft is a crime that the normal, everyday person has to safeguard against. Like taking vitamins to ward off disease, preventive measures exist to ward of identity theft.

First, you can call your bank and credit card providers and ask that they call you and get verbal confirmation before approving an amount over X amount of dollars. The dollar amount is going to be different for everybody depending on his/her threshold. For example, you could call your bank and tell them that any withdrawal or purchase over $750 needs to be cleared by verbal confirmation. Therefore, if a purchase over $750 is attempted on that credit card, the company will call you on the phone number that you have provided (usually a cell phone) and will ask if you are making a purchase of X amount of dollars. If you say yes, the amount is approved and on you go. However, if somebody else is trying to do this, the purchase will be denied and the thief will be caught.

The effect of this measure is that you account is protecting against “abnormal purchases.” This measure does not prevent you from buying something over your confirmation amount. All this measure does is create an additional layer of protection so that if somebody tries to use your credit cards, they will not be able to make a “big” purchase.

Second, you can sign up for a credit report monitoring company. By doing this you will know if a new account has been opened or if an inquiry has been made on your report. The credit report monitoring company will immediately notify you and ask whether the opening of the account or the inquiry is valid. If it is not, the account will be disputed and the thief will again be unmasked.

Third, do business with a bank that will guarantee to replace all stolen funds within a short period (24 – 120 hours). This way, damage to your account is minimized. If you check your account balance everyday, this measure will be extremely effective because you will immediately know whether a fraudulent purchase or withdrawal has been and where it was made.

Last, be careful and avoid things you do not know. For example, I have seen letters from identity thieves that were sent via US mail. The letter usually purports to be from a large bank and asks you for your account number, social security number, or some other private account information that is necessary to steal your identity. These letters will provide a phone number to call in case you have any questions. If you randomly get a letter or e-mail like this, NEVER call the number provided. Open up the phone book or call information and get the bank’s number. Call that number and see if the bank really sent out such a letter. NEVER reply to these kinds of letters through the mail. Think about the situation; why would your bank want this kind of information? The bank provides you with an account number, so why would they need to “verify” it through the mail? Additionally, why do they need you full name and address; didn’t they just send you a letter?

Protect yourself and protect your assets using these safety measures.