How to Protect Your Finances From Identity Theft
With Black Friday and Cyber Monday just around the corner, you’ll likely be entering your credit card information online a lot more than usual. How can you be sure you’re not exposing yourself to credit card fraud and other types of identity theft? Having your identity stolen can be a nightmare that can wreak havoc on your finances and credit rating. Luckily, there are steps you can take to protect yourself.
How to protect your finances from identity theft
Control your accounts
Monitor all your financial accounts closely on a regular basis. This is good advice all year round, but especially during the holidays. Watch for any suspicious activity, such as purchases that you don’t recognize.
If you notice anything suspicious, please contact the fraud department associated with your payment method immediately. Here’s our guide to when you might need to dispute a credit card charge rather than file a fraud complaint.
It’s a good idea to carefully check your credit card and bank statements every month, and check your credit report at least once a year for bills you don’t recognize. On this note…
Check your credit report
Obtain a copy of your credit report from each of the three major credit bureaus once a year. You can do this anytime for free through Equifax, Experian and TransUnion. Scan your reports for any accounts that you don’t consider to be yours. This will help you quickly detect fraudulent activity on your behalf.
Setting up alerts
Many banks and credit card companies allow you to set up alerts to notify you of certain account activity. For example, you can receive alerts for any charges over a certain amount or withdrawals. These alerts allow you to quickly take action in the event of fraudulent activity.
Use strong passwords
Create unique and strong passwords for all your financial accounts. Avoid common or easy-to-guess passwords that could be compromised by identity thieves. Use a combination of letters, numbers and symbols. And if you update your passwords to be as random as possible (i.e. strong), you won’t have to worry about constantly changing them.
However, changing your passwords is especially important if you receive a message that your information has been compromised in a data breach. Be sure to change your password on all sites where you use the same login information, and stop reusing passwords already!
Freeze your credit
If you suspect fraud, freezing your credit will prevent new accounts from being opened in your name without lifting the freeze. This makes it difficult for thieves to open fraudulent accounts. Just be sure to remove the freeze when you apply for a legitimate new loan.
Be careful of scams
Do not be fooled by phone calls, emails or text messages asking for your personal information. Banks and financial institutions will not contact you asking for sensitive information such as passwords or social security numbers. Do not click on links or download attachments from sources you do not know. And yes, even in the digital age, ATM card skimming still happens . To learn more, read about all the ways your credit card information can be stolen.
Being proactive is the best way to thwart scammers and other attackers. Monitoring your accounts, using strong passwords, and checking your credit are important steps. By taking proper precautions, you can protect your finances. To learn more, stay up to date with Lifehacker scam news here .