It seems that we can’t go a few months without hearing about another retailer that has gone through a data breach. When this happens, everyone goes into a frenzy to ensure that they weren’t a victim of credit card fraud.
While it is certainly a good idea to check your statements after a retailer that you frequent has had their data compromised, the truth is that you should be vigilant in checking your credit statements year-round. Here are four ways that you can make sure that your bank accounts and credit cards won’t be victimized, and that you will catch a fraudulent payment right away:
Check your bank statements often.
With almost all financial institutions offering online statements, checking over your credit and debit purchases has never been easier. Make it a part of your weekly schedule to check over your online account, and reconcile your statement against your purchases. If there is anything unusual that you don’t recognize, call your bank or card issuer right away.
Change passwords regularly.
Make sure that you change your passwords to any sensitive online accounts on a regular basis. To make a password as safe as possible it should contain 8 or more characters, including letters, numbers, and special characters. It should also be a random string of characters – the name of your children or your pet isn’t going to cut it anymore.
Also make sure that you don’t use the same password for any two accounts – it makes a hacker’s job a lot easier if your online banking password is the same as your email password, for example.
Don’t let your cards out of your sight.
If you really want to be careful about avoiding credit card fraud, you should be wary about letting your card out of your sight. Don’t lend it to anyone (even friends or family members). If you need to use a card to pay your bill at a restaurant, immediately make sure that the card that you get from the waiter or waitress is yours.
Receive a free credit report annually.
You should be able to receive a free credit report from each of the three credit reporting agencies (Experian, TransUnion, and Equifax) each year. When you get your score, make sure that you don’t have any erroneous penalties present. If you do, make sure to straighten them out as soon as possible.
Replace lost and stolen cards right away.
If you fear that one of your cards is lost or stolen, don’t wait – call your card provider right away and request a replacement. Any time spent looking for the lost card is also time that a thief could spend making purchases on your accounts. It’s better to be safe than sorry, and time spent waiting for a new card is much easier to swallow than time spent trying to clean up after charges on a stolen card.
If you would like additional help in ensuring that your finances are safe and healthy, just contact Vargas and Vargas Insurance Agency at 617-298-0655 and ask about our financial planning assistance. We can help you avoid credit card fraud, navigate stocks and investment strategies, and make a financial plan tailored to your specific needs.
