Credit and debit cards are the ultimate in spending convenience. They make it easy for us to buy online, by phone or by mail. They help us reserve cars, hotel rooms, plane tickets and more. They eliminate the need to carry large amounts of cash. And when we need cash but don’t have it, we can take them to the ATM and withdraw money in a snap.
Credit and debit card issuers institute certain security measures to prevent cards from unauthorized use. One of the most important of these measures is the personal identification number, or PIN. Cardholders are required to select a PIN number when their cards are issued. They must enter this number when withdrawing cash from an ATM. With debit cards, it is also required when making purchases from many merchants.
Keeping our PIN numbers safe is extremely important. If someone steals a credit or debit card, he can’t withdraw cash without the PIN number. But if the thief has that number, he can withdraw or transfer money and check the cardholder’s account balance. With credit cards, you can only be held liable for up to $50 in unauthorized charges. But with a debit card, you may have to pay as much as $500.
Most of us know that it’s unwise to write down our PIN numbers, especially if we carry them with us. So we try to choose numbers that are easy for us to remember. Unfortunately, numbers that are easy to remember are also easy for a criminal to guess. Here are some numbers that are often used as PIN numbers, but are not the best choices:
* Birthdays (our own or those of family members)
* Birth years
* The last four digits of your or a friend or family member’s phone number
* The last four digits of your social security number
* Sequential numbers (such as 1234, 5678, etc.)
* Repeating numbers (1111, 2222, etc.)
* Your house number
Any of these numbers are pretty easy for a thief to guess. In the case of phone numbers and social security numbers, someone could find those by stealing your mail or trash. Birthdates are also reasonably easy to find out.
Still, we need a number that is easy for us to remember. If we forget PIN numbers, we usually have to contact our card issuers and have them reset. When you need money right away, that’s the last thing you want to deal with. Here are some tips for choosing a secure PIN number that you won’t forget.
* Use the birthday or birth year of a distant or deceased relative, or of someone famous (unless you’re a well-known fan). In general, birthdates are fairly safe as long as they aren’t those of someone in your household. But the farther removed the person is, the better.
* Think of a major event in your life that is significant to you, but unlikely to be significant to anyone else. A wedding anniversary is pretty obvious, but how about the date you became engaged, or the day you got your learner’s permit?
* Use the last four digits of a phone number you know but no longer call. This could be a phone number you had when you lived somewhere else, that of a former employer or that of a deceased relative.
A PIN number could be the only thing standing between a criminal and your hard-earned money or credit line. Choosing it carefully will give you peace of mind while allowing easy access to funds when you need them.
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Having your identity stolen is no picnic. It can cause serious damage to your credit, and possibly even your criminal record. Identity theft victims spend a lot of time and money trying to clear their names, and all too often they are unsuccessful.
We’ve all heard the expression, “An ounce of prevention is worth a pound of cure.” This certainly applies when it comes to identity theft. While in many cases identity theft occurs through no fault of the victim, there are things you can do to reduce your chance of becoming a target.
Tip #1: Keep Your Mailbox and Garbage Free of Personal Information
It may sound archaic, but dumpster diving is still alive and well. Some identity thieves still rummage through other people’s trash in hopes of finding personal information they can use. Fortunately, having your identity stolen from your garbage is fairly easy to prevent. Just shred anything that has account numbers, your Social Security Number or any other identifying information on it before tossing it.
Stolen mail also remains a popular source of information for identity thieves. Make it a point to check your mail as soon as possible after it’s delivered, and never leave it in the box overnight. You can also stop receiving unsolicited credit card and loan offers by calling 1-888-5OPTOUT. This will reduce the number of things in your mail that a would-be thief could use.
Tip #2: Use Your Information Wisely Online
Online banking and shopping are wonderful conveniences, but they can also provide opportunities for identity thieves. Some send “phishing” emails that are designed to look like they came from your bank, requesting information such as account numbers and passwords. Others set up fake online stores to steal information from people who shop online.
An important rule of thumb is to never, ever click on a link in an email that requests personal information. Instead, type the URL of the bank or company that the email claims to be from directly into your browser’s address bar. When you log into your account, there should be a request for information there if it is legitimate. If there’s any doubt, call the institution using a number from your statement or the phone book and ask.
When shopping online, only give your personal information and credit card number to companies you trust. Also, make sure that the page you enter information into is secure. If it is, there will be a lock icon at the bottom of your browser, and the URL will begin with “https” instead of “http.”
Tip #3: Watch and Protect Your Credit Report
Keeping an eye on your credit report may not prevent identity theft from happening in the first place, but it can help you catch problems quickly. As soon as you see suspicious activity, report it to the credit bureaus and have a fraud alert placed on your credit report. This will keep the thief from opening any more accounts in your name.
It’s also important to put a fraud alert on your report if you find out that your information has been stolen from a third party. Companies are required to inform their customers when their personal information has or may have been stolen from their files or computers. If you receive such a notice, call the credit bureaus immediately, request a report, and initiate a fraud alert.
Identity thieves are a persistent lot. But if you make it as difficult as possible to obtain and use your personal information, they will likely move on. There are plenty more identities out there that may be easier marks.
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Credit can help us get the things we need and want. For most of us, credit is required to buy a home or car. We can also use it to buy everything from vacations to groceries. And increasingly, our ability to rent an apartment or get a new job hinges on our credit.
Our credit files are maintained by credit reporting agencies, also known as credit bureaus. In the United States, there are three agencies that keep track of everyone’s credit: TransUnion, Experian and Equifax. Creditors use information provided by these agencies to determine a borrower’s creditworthiness.
What Kind of Information Do Credit Reporting Agencies Keep?
Credit reporting agencies maintain a file on each person who has obtained credit. This file includes personal information such as the person’s name, address and phone number, as well as his Social Security Number. It also includes a list of accounts that have been obtained under that name, as well as the amount borrowed and payment history associated with those accounts.
The agencies get this information directly from lenders. Most report to all three agencies, letting them know if you have made your payments on time. If you haven’t, they report how late your payments were and whether any collection action was taken.
Credit reporting agencies also have access to public records. That means that they can find out if you have had any judgments against you, or if you have filed bankruptcy. This information, if applicable, is added to your credit report. The agencies do not, however, list any information pertaining to driving or criminal records.
Who Can Access Credit Reports?
Credit reporting agencies are required by law to only release credit reports to companies that have a legitimate need for a person’s credit history. These include lenders, employers, landlords, insurers, and in certain cases, government agencies. The average person cannot legally access someone else’s credit report.
You can, however, access your own credit report. By law, each individual is entitled to a free copy of his credit report from each of the three credit reporting agencies each year. In addition to this, you may also request a copy from the agency used by a creditor who denies you credit within 90 days of being turned down. You may request a copy of your report in writing or online, but you must provide identifying information to prove that you are who you say you are.
If you find information on your credit report with which you disagree, you can dispute it. The agency will investigate your claim, and if it finds that the information is erroneous, it will remove it from your report. If it maintains that the information is true, you can place a note with that information that must be passed on to anyone who views your credit report.
Credit reporting agencies simply pass on information obtained from creditors. They do not determine whether or not we can obtain new credit. They do, however, give lenders the information they need to make that decision for themselves.
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