The news has been filled with stories about security breaches. How can I defend myself against identity theft and protect my credit score?
[brad koeneman, cfp®, awma®, mba, principal, moneta group]
Discussing fraud is now part of all our client review meetings, as it’s unfortunately a booming industry. We hear that as many as 5 percent of taxpayers in St. Louis have had a fraudulent tax return filed using their social security number. It even happened to me! There are several things you can do to reduce your risk of becoming a victim of fraud.
When it comes to your computer, change your passwords frequently and consider installing password management software. Store passwords on an external thumb drive and never on the computer itself. Avoid malicious software being placed on your computer or smartphone by not opening email attachments from unknown senders or clicking on pop-ups, and always install updates to your computer software. Beware of phishing emails that ask you to provide personal information. And before disposing of a computer, wipe all of your information.
When shopping, avoid online purchases where you are not familiar with the site. Consider opening a separate credit card for online purchases so it’s easier to cancel if stolen. Avoid storing your credit card information on a retailer’s website in case they are hacked. Closely check your credit card and bank statements each month, looking for small fraudulent charges, as these are often the first step in compromising your credit. Check your credit report and sign up for a credit-monitoring service. Finally, considering having someone like us handle distribution requests from your accounts so we can serve as your watchdog.
[maurice e. quiroga, ctfa, cws, executive vice president, pnc wealth management firm]
The chance that someone will assume your identity to open fraudulent bank or credit accounts is increasing as thieves become more sophisticated. The best way to protect your credit is to try to prevent this from happening in the first place. When using your debit card, be alert to your surroundings and choose drive-thru ATMs when possible. If you must use a walk-up ATM, pick one inside a store or in a well-lit, well-trafficked area.
It’s also important to make a list of your credit cards, even those you don’t carry in your wallet, including account numbers and the names and emergency phone numbers of each issuer. Store this in a secure place because you’ll need this information if your cards are ever stolen. Avoid theft by keeping your purse or wallet secure and not letting your cards out of your sight when you use them to pay at a store or restaurant. Also, don’t carry your birth certificate or Social Security card in your wallet. At home, remember to shred pre-approved credit card or loan applications and balance-transfer checks from your credit card company before you throw them in the trash.
Finally, if your wallet or personal identification is stolen, don’t wait to act. Minimize potential damage by immediately calling the police, your credit card company, your bank, and the three major credit bureaus—Experian, Equifax and TransUnion. If you’re concerned about a potential scam, call the local police.
