Credit fraud and identity theft, these are two things that can wreak havoc with your life and your hard earned retirement savings.
How Do They Get My Information?
The first thing is to understand how thieves can obtain your personal information and then take the steps to prevent unauthorized use of your identity and credit. Here’s how:
- Don’t share personal information. Unsolicited telephone calls and email scams can take unsuspecting people by surprise. Just because someone calls to ask for donations to the “Police Protective League” and wants your credit card number, it doesn’t mean that the person on the other end of the line is legitimate. Instead, ask them to send you a donation request in the mail.
- Shred all your papers. It’s easy and inexpensive to purchase a paper shredder at the local office supply store. Criminals regularly sort through the trash for your bank and credit card statements, investment information, cancelled checks and other items that have personally identifying information. Shred anything that has an account number, home address, birth date, Social Security Number or signature on it.
- Take advantage of a yearly free credit report. This can help you monitor whether any unauthorized accounts have been opened in your name.
- Always check your financial statements. Each month, review your bank, credit card, and retirement savings and investment accounts for red-flag transactions.
- Remove SSN or driver’s license numbers from your checks. Less is more in this case. You don’t need to have all your identifying information imprinted on your checks. Even better take advantage of the convenience of online banking. You can conveniently and securely set up all your bill paying without ever having to physically write a check.
Steps to Take if You’re a Victim of Credit Fraud
No matter how careful you are, credit fraud and identity theft can happen to anyone. First, call your bank or credit card company to dispute the charges and have them close your accounts. They will set up new ones that the criminals cannot access, as well as send you new credit cards.
Most financial institutions will refund your account if fraudulent charges exceed $50. However, fraudulent debit card use is much more difficult to dispute and to restore your balance than a credit card. This is why it’s important to check with your bank, credit union or credit card issuer to find out their fraud refund policies.
Next, file a police report. Put a copy in a secure place because you will need to keep the report forever. Finally, notify the three credit reporting bureaus, Experian, TransUnion and Equifax, that your credit has been fraudulently used.
Unfortunately, identity and credit theft are facts of life. And if you’re not careful, it’s possible to watch a lifetime of retirement savings disappear, along with spending countless hours repairing damage to your good name and credit record.
