Post-Holidays Ideal Time to Check for ID Theft
We know, we know: that stack of bills on your kitchen table can’t possibly have a bright side. Right?
Surprise: our experts note that your first rush of credit card statements after the holidays can offer a unique opportunity to catch up with an identity thief in the making.
By giving each transaction from the month or two before Christmas the once-over, you can find suspicious activity before it gets out of hand…and ruins your credit.
Checking Your Receipts
Smart shoppers kept their paper receipts for the 2008 holiday shopping season. If you have some or all of your shopping receipts, organize them now by credit card used rather than by store. As your credit card statements begin coming in, it’s an easy matter of checking each amount against the total on the receipt.
If you didn’t keep every paper receipt, don’t worry. You can still substantially reduce the chances of a bogus charge slipping past your eyes if you take what information you do have and compare it to your statement.
Request a Credit Report
Unless you’re planning on requiring one for another purpose (such as a loan) within the next 12 months, now is also a good time to order a credit report. (You may obtain one free credit report from each of the three largest credit reporting agencies annually.)
Your credit report will alert you to certain fraudulent transactions. For instance, if you see that the report was requested by institutions you don’t recognize and/or you spot requests that took place during times you weren’t trying to secure a loan, someone may have accessed your information. That person (or people) may have attempted to get credit or goods based on your identity.
Checking your credit report is a good habit for other reasons, too; it will tell you if discharged, outdated debts are still showing (and perhaps hindering your credit score) and whether someone else’s debts have erroneously been placed under your social security number.
If You Detect Foul Play
What if you do discover a fraudulent charge on one of your accounts?
First of all, don’t panic. Some incorrect charges may be a simple matter of computer error. Call the credit card company and explain that the charge isn’t yours. The representative will most likely put through a request to investigate the charge. The same will happen if you call your bank to report a withdrawal or other transaction you can’t account for.
If the charges are due to clerical error, they should be reversed without further concern to you. If, however, your financial institution believes the charges are due to fraud, you’ll need to take some further steps of your own to keep the situation from worsening.
Developing a Plan of Action
First of all, though your credit card company or bank has measures to attempt to detect unusual activity, now that your identity has been breached you’ll need to do your own homework. For the next six months, keep an eagle eye on every transaction you make to compare it with your monthly statements. Experts warn that identity theft often starts with smaller expenditures as the thieves “test the waters,” so to speak. Reduce that possibility by reporting anything unusual—even a $5 purchase at a quick-stop shop you can’t account for.
Begin banking at just one ATM, if possible. The city and state of the ATM machine usually show up on a bank statement; if you have one location for these transactions, a different locale will stand out as you go over your statements.
You may also consider a quality credit monitoring service. These services are personalized to watchdog your accounts with a keener eye than most institutions’ generalized measures will detect.
Get off to a happy and financially secure New Year…and make some good ID protection habits that will last a lifetime!
