Be Proactive: Protect Your Wallet – Part 2
In last week’s blog, I covered how to keep your wallet safe:
1. Clean and sort the items in your wallet (and remove almost everything)
2. Store your items securely at home.
3. Make photocopies of the front and back of all cards and documents.
This week I have outlined the steps to take if your wallet is lost or stolen.
What to Do if Your Wallet Is Lost or Stolen
· Cancel your debit and credit cards. Close your debit card and credit card accounts as soon as possible. Call your bank or credit card companies that issued the cards to cancel each card. Request replacements with new account numbers.
o Your debit card is the most vulnerable to financial loss because it is linked directly to your bank account. You have two business days to refute any unauthorized charges on a debit card under federal law. If the charges are reported within two business days of learning about the theft, maximum liability = $50. After two business days, the liability rises to $500. But if you wait more than 60 days, you may be liable for the entire amount stolen which can add up to thousands of dollars.
o Credit card funds used by thieves are owned by the credit card issuer. You have 60 days to report your loss. The most you will owe for unauthorized charges on each card = $50.
· Freeze your credit. Contact each of the three national credit reporting bureaus — Equifax, Experian, and TransUnion — and ask them not to share your credit report or information with anyone. There is no cost to freeze your credit. Once your credit is frozen, request a free credit report from each of the bureaus to check for unfamiliar activity and suspicious new lines of credit.
· Set up fraud alerts. Sign up now for account activity alerts through email, text message, or the company’s app. This enables you to see suspicious transactions immediately. If your cards are stolen, request the three credit bureaus to place fraud alerts on your credit. This notifies creditors, lenders or anyone viewing your credit report that someone may be trying to apply for credit fraudulently in your name, and prevents an identity thief from taking out credit in your name. Lenders will not issue new credit cards or approve a new loan if they cannot see your credit score and know your risk profile.
· File a police report. Call your local precinct to get a police report on record to protect yourself. The police may not be able to recover your missing wallet, but you now have documentation to substantiate the theft. If someone finds your wallet, a filed police report will have your contact info so your items can be returned to you quickly.
· Update your auto-pay accounts. When you receive your replacement cards, update the billing information for anything managed through autopay to avoid late fees.
· Monitor your accounts, even if your wallet is not stolen. Be alert to tiny withdrawals. Sometimes thieves will process a small debit or charge against your account to see if it will go through, then return to withdraw higher amounts. If your card has been stolen and the account closed, continue to check your monthly paper statements and online accounts for charges you do not recognize and for suspicious withdrawals. Fraudulent charges to your card or debits to your bank account can occur many months after the theft of your information.
Replace What Has Been Lost
· Social Security card. Do NOT carry your Social Security Card. But if your SSN card is lost or stolen, contact the Social Security Administration (SSA) immediately to report its loss. Consider whether you really need a replacement card before requesting a new one. Memorize your SSN number. You rarely need the SSN card itself unless you are starting a new job or applying for a Real ID. Replacement SSN cards can be requested online or by calling the Social Security Administration (SSA): 800-772-1213. Fill out the application form, print it, and bring the necessary original documents to your local Social Security office. You can also block electronic access to your Social Security account by calling SSA to prevent anyone from accessing or changing your account information. To reverse the block, you must call SSA to confirm your identity.
· Driver’s license. Replace your license immediately because you need it to drive legally. Your state’s RMV or DMV website provides instructions on how to replace your license. An identity thief can use your license to fraudulently open credit cards, take out loans, change your address, receive your mail, and file for unemployment benefits in your name.
· Medicare card. Medicare numbers are used for many scams, including filing false claims and reimbursement. If someone asks for your information or money over the phone, or threatens to cancel your benefits, report it immediately to 800-633-4227 (800-MEDICARE) or online. You have three options to replace your Medicare card:
1. Log in to your online Medicare account and clicking Print My Medicare Card on the main page. Use this printed version until your Medicare card arrives in the mail.
2. Call 800-MEDICARE (800-633-4227) to order a replacement card.
3. Replace your Medicare card through Social Security if both cards are missing. Log in online and navigate to the Medicare Enrollment Detail section. Click on Replace Your Medicare Card, then Mail My Replacement Medicare Card. Your new card will be mailed to you at your address on file with the SSA in about 30 days. Memorize your Medicare number – sometimes you do not need your card to be eligible for benefits if a provider can look up your information online.
· Private Health Insurance Card. If you have lost a health insurance card from a private plan, file a request for a new card online or by phone. Representatives should be able to guide you through the process of obtaining a new one. Check your explanation of benefits summaries regularly for fraudulent usage.
Take time now to protect your wallet and your financial identity. This will save you time and money, and will reduce anxiety if you become a victim of fraud or identity theft. Want to schedule a quick call with me? Click HERE
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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.