About 16.6 million Americans — or 7 percent of the population — fell victim to identity theft in 2012, according to a December 2013 report from the U.S. Department of Justice.
One form of identity theft involves criminals stealing personal information and opening accounts, borrowing money and generally wreaking havoc on your financial life.
However, the majority of cases in the report (85 percent) involved stolen credit or debit card information that was used to make unauthorized purchases. Although less severe, credit card theft is nonetheless alarming — and it can be burdensome to resolve.
Many people realize their credit card information has been stolen after the fact, such as when a store or credit card company calls to verify a transaction. Some may spot the offending purchase — or purchases — on a statement. If this happens to you, or if you find that your card is missing, call the issuing company as soon as possible. Generally speaking, if your credit card is used without your permission, you won’t be liable for more than $50 under federal law; however, debit card rules and regulations can be trickier and you could be held responsible for purchases made before you reported the fraudulent activity.
Protect your credit card information and thwart would-be thieves by following these steps:
Review your credit and bank accounts monthly — even weekly, if possible. Monitor purchases closely for ones you didn’t make.
Be cautious online. Be sure to clear usernames and passwords after visiting a website. Don’t be duped by phishing scams, which can come in the form of pop-up windows or emails that look to be from legitimate businesses but are really set up by criminals. Remember to use your credit card for online purchases, as they generally have better guarantees under federal law than debit cards do.
Shred documents with personal information such as Social Security numbers, birthdates and account numbers. Shred paper mail with personal information and account numbers.
Better yet, move as many accounts as possible to online statements to reduce the likelihood of information falling into the wrong hands.
Set up alerts with your banking and credit accounts. Most companies provide a range of text and email alert options for free.
You can customize these alerts to notify you when specified transactions occur, such as a purchases over $500, online purchases or changes to your account information.
Monitor your credit reports regularly. By law, you are entitled to one free credit report a year from each of the three credit report agencies — Equifax, Experian and TransUnion. Check one report every four months, rotating through the agencies, and review for abnormal activity.
If you don’t have the time to monitor your accounts closely, there are companies who will do it for you, often offering insurance as well.
Generally, this insurance covers costs incurred while dealing with fraud but not necessarily financial losses from the fraud itself.
For around $10 or more per month, companies such as Experian, AARP and Identity Guard* will monitor your accounts for unusual activity, conduct daily Internet searches for unauthorized use of your personal information and help you resolve theft problems.
By diligently guarding your information and keeping a watchful eye on your accounts, you can lower your risk of credit card theft and quickly put an end to it when it does occur.
*StanCorp Investment Advisers is not affiliated with these companies and does not endorse one service over another.
Erin Eddins works for StanCorp Investment Advisers. She can be reached at erin.eddins@standard.com, 425-212-5986 or visit her company’s website at www.stancorppugetsound.com.
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