Becoming the CEO of Your Personal Life –
A Personal Insurance Series: Identity Theft — Credit and Debit Cards

Private Client Group

When it comes to risk management and insurance, it’s important to apply your business best practices to your personal life as well. All too often, we overlook assessing our risks and updating our insurance when we make lifestyle changes, grow our wealth, and add (or delete) valuable assets. In this series, we will discuss common sense steps that you can take to be an effective CEO of your personal life.

Will cash become a thing of the past? It often feels that way with the prevalent use of credit cards, online banking, and electronic payment apps. While credit and debit cards eliminate the need to carry cash, they are easy targets for identity theft. It’s important to safeguard and use them wisely.

• Minimize the number of cards that you use and carry only one or two at a time.
• Use a credit card instead of a debit card whenever possible. A debit card can be skimmed, giving thieves access to your checking account. When using your debit card, ask that the transaction be processed as credit card. Credit cards provide more protections against fraud claims.
• Review your accounts monthly to ensure that you have no fraudulent charges. It’s a good idea to also review your utility and phone bills, and your bank statements.
• Keep a list of all your accounts, including account numbers and contact info, in a secure place so that you have the information at hand when you need to report a lost or stolen card, or fraudulent charges.
• Contact your card issuer if you don’t receive an expected card in the mail.
• Consider closing accounts that you never use. They are additional targets for identity theft. However, keep in mind that closing accounts can negatively affect your credit score.

If your credit or debit card is lost or stolen:

• Report a lost or stolen card to the issuer immediately to shut down the card and obtain a replacement. Keep in mind that the window for disputing debit card fraud is narrower than credit card fraud.
• File a report with the police if your card has been stolen.
• Notify your other creditors that you have been a victim of identity theft.
• Place a fraud alert on your credit report. This will alert potential creditors that you may be a victim of identity theft and they will ask for verification before opening a new account.
• Monitor your credit report. You can obtain one free report annually from each of the three major credit bureaus through www.annualcreditreport.com.
• Consider placing a security freeze on your credit report. This locks your credit report so that no one can open a new account in your name. You can temporarily unlock the freeze to open a new account.
  Once cash is lost or stolen, it’s gone forever. Credit and debit cards give us a stronger sense of security and safety. However, it’s important to recognize their risks and take steps to protect ourselves against theft and fraud.

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