Be Proactive: Protect Your Wallet – Part 1

Have you ever lost your wallet? I did years ago when I left my wallet in a pay phone booth (yes, I am dating myself!). I will never forget the panic I felt. I was fortunate it was found and turned into the local police station with everything intact, but many are not so lucky. If you cannot find your wallet, do you recall your panic while trying to recall the last place you remember having it. In your car? Your house? Did you drop it? Was it stolen?

The biggest concern used to be losing cash and credit cards. But today most people carry so much more in their wallets - an incredible amount of personal and financial information which can be exploited by identity thieves. Having only your name and Social Security number can enable a thief to open fraudulent accounts and apply for bogus loans. If a thief has your passport or government-issued photo ID, more damage can occur.

Be proactive to keep your wallet safe.

· Pull everything out of your wallet or purse. Put back only the things you use frequently or will need on a particular day.

· Keep a list of every item in your wallet and put the list in a safe place.

· Scan or take smartphone photos of the back and front of all cards and documents, and save to your computer.

· Add contact information for customer service numbers for your bank and credit card companies in your phone. You will need to reach out quickly to these companies in case of theft or loss and you will not have your card to look up the lost/ stolen fraud phone number.

Remove these items from your wallet.

· Social Security card. You do not need your SSN card for daily use. Criminals can use it to open lines of credit in your name or sell your information to another criminal. Never carry your Social Security card in your wallet— or even a piece of paper with your SSN on it. If you must carry it for a specific purpose (to close a mortgage loan or file for benefits), take it out of your wallet as soon as you return home and store it safely.

· Your PIN. If you lose your debit card, someone can access your cash if your PIN is written on the back of the card. Memorize it!

· A password cheat sheet. Many people have a password cheat sheet to keep track of the myriads of passwords needed to access most everything today. A 2023 Pew Research Center survey (the most recent data) found 41% of U.S. adults "always, almost always, or often" write down their passwords on paper or use a digital note. And many people carry these in their wallets where they are easily accessible and easy to lose or steal. If you must write down your passwords, keep them in a locked box in your house or use a digital password manager.

· Spare key. Keeping a spare key in your wallet is an invitation to a thief to enter your home if your wallet is found with your ID/ home address. Do not put a key in an obvious place (under a pot or rock). Leave your spare key with a friend or family member, or consider a smart digital lock.

· Multiple credit cards. Choose just one credit card and one debit card to carry and leave the others at home. Carry one rewards credit card for everyday purchases and a backup card for unplanned purchases or emergencies. Photocopy the front & back of every card and write down the cancellation/ fraud phone numbers or websites for your cards.

· Credit card receipts. Do not carry store and restaurant receipts. A thief can use the last five digits to construct legitimate-appearing emails to try to obtain your full account number. Remove receipts in your wallet and shred them. If you think you may need it, scan and save it in the cloud. If you need to retain a receipt for a warranty or possible return, request a digital receipt.

· Checkbook/ blank checks. Blank checks are risky. A blank check could be used to quickly drain money from your bank account. It displays your bank account and routing numbers and sometimes your home address and telephone number. Leave your checkbook at home and only carry blank checks you might need immediately.

· Checks payable to you. A criminal can forge your signature and cash your check. It is best to deposit your check using your bank’s smartphone app.

· Passport or passport card. A U.S. passport is considered the most valuable identity document in the world, providing proof of U.S. citizenship. It allows its bearer access to virtually every country in the world and can be a weapon used against your finances if it falls into the wrong hands. An identity thief can use it to travel in your name, get a new copy of your SS card and open bank accounts. If traveling in the U.S., only carry your driver’s license or other personal ID. Keep your passport in a secure place at home. While traveling abroad, carry a photocopy of your passport, and leave the original in a hotel safe.

· Birth certificate. Similar to a passport, a birth certificate contains enough information for a criminal to create fake accounts in your name and access your accounts. While a stolen birth certificate is not as useful to a thief, it can be used with other types of fraudulent ID If you must carry your birth certificate for a specific reason (applying for a Real ID or for a mortgage loan closing), do not let it out of your sight.

· Unredeemed gift cards. Gift cards are essentially equivalent to cash. Stores rarely ask for ID when using gift cards since your name it not on the gift card. Redeem them online or only carry them if you plan to shop at a specific retailer that day.

· Work ID card. Some employers issue work ID cards with your name and other identifying information. This could potentially lead to a phishing campaign to scam others in your workplace.

· Library card. Criminals have been known to check out books with fraudulent library cards and sell them.

· Legal paperwork. Never carry legal documents that you do not need that day. These documents may contain sensitive financial data, including birthdates for you and your children, your address, financial data and more.

· Cryptocurrency seed phrase or recovery phrase. Crypto investors have a seed phase (sequence of 12 or 24 words) required to access or recover cryptocurrency on blockchains or in crypto wallets. Never carry this information in your wallet.

· Medicare card. Only carry your Medicare card when you are headed to an appointment that might require it. You must show your Medicare card to your doctor, hospital, or other health care provider to receive services. If you have a Medicare drug plan, Medicare Advantage plan or supplemental coverage, carry the plan cards with you. If you have an old Medicare card with your SSN on it, shred it and replace it with your new card. Your Medicare number is unique to you and should be closely guarded. Never share with anyone who contacts you unexpectedly by phone, email, or text or in person.

What should I carry in my Wallet?

· One form of ID. There is no need to carry a passport, social security card, and driver’s license.

· One Credit Card. Credit cards tend to have more protections against fraud versus debit cards. Carry one credit card for your day-to-day purchases.

· Emergency Contact Card. Keep a small emergency contact card with names of friends or family members to contact in case of emergency or if you lose your wallet.

In summary, how can you keep your wallet safe?

1. Clean and sort. Take everything out of your wallet and sort it all, with an eye to paring it back. Remove old receipts, shopping lists, business cards, single-store credit cards that rarely get used, coffee shop punch cards that you will likely never fill up, etc. If it is not something you will need often or in an emergency, keep it at home.

2. Store items securely. Create a safe and secure storage system at home for the occasional wallet items you have removed. You can put extra cash there, too. Grab cards or items when needed, and return them to their secure spot when you are done with your errand.

3. Make photocopies. Consumer advocates advise making photocopies (or taking smartphone photos) of the front and back of all your cards, so you know whom to contact if they go missing. Put the photocopy in a safe place at home where you can easily retrieve it. If your wallet is lost or stolen, you at least have the information you need to quickly and easily file reports with the appropriate government agencies and financial institutions.

Stay tuned for a future blog about what to do IF your wallet is lost or stolen.

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Best regards,

Janet Rhodes Friedman, CFP®, CDFA®, MBA

Janet@PlanWithFPS.com

617-630-4978

Financial Planning Solutions, LLC (FPS) is a Registered Investment Advisor. Financial Planning Solutions, LLC (FPS) provides this blog for informational and educational purposes only. Nothing in this blog should be considered investment, tax, or legal advice. FPS only renders personalized advice to each client. Information herein includes opinions and source information that is believed to be reliable. However, such information may not be independently verified by FPS. Please see important disclosures link at the bottom of this page.