SavvySugar

Money Scare: What to Do When You've Been Robbed

Emily Co — Thu, 27 Oct 2011 13:45:24 PDT

Since Halloween is coming up in just a few days, it seems fitting to talk about the various scary money situations that people find themselves in. I recently addressed tips for bankruptcy and what to do when you're laid off, but today I'm going to talk about what to do when something (or things) is stolen from you. Even if this hasn't happened to you, it's a good idea to know what to do when the time comes so you don't freeze up and act out of panic.

When your home is robbed: Once you find your house has been broken into, immediately leave your home and call 911. Stay in a safe place while you're waiting for the police to come, because you don't want to run the risk of bumping into the criminal. Wait until the police come before you take further action, which means you shouldn't search your home or touch anything before the cops come or you'll be tampering with evidence. Then, walk through your house and create a list of things that you notice missing from your home. If you have not taken photos of the items before the theft, make sure you write a detailed description of them. You will need to submit this list to the police and your homeowner's insurance. When you're reporting the crime and claiming insurance, start working on ways to make your home safer. For example, you can do things like get a good alarm system, lock up your valuables, and secure your windows and sliding doors.

When your identity is stolen: If you've been monitoring your credit report and all of a sudden you see strange activity like new credit cards being opened or if you're seeing weird charges on your credit card bills, someone may have stolen your identity. First decide whether you want to place a fraud alert or a credit freeze. With a fraud alert, the creditor will be more cautious when giving credit in your name and all you need to do is place the alert with one credit bureau, which will then notify the others. A credit freeze is the more secure option - you can't be considered for new credit until you've disabled the freeze. The latter option provides more protection, but it's also more of a hassle and you have to pay a fee. You'll have to individually freeze your credit with all three agencies.

Read on for more tips.

Protect Yourself: How to Freeze Your Credit Report

SavvySugar — Sun, 23 Oct 2011 03:05:04 PDT

Freezing your credit report is an option for you if you want to play offense with identity thieves, and won't be in the market for any new credit in the near future (including shopping for a new cell phone or utility service). If you've been a victim of identity theft freezing your credit report won't cost you any money, but if you've come this far without having your identity stolen than freezing your credit report comes with a fee. Why do you have to pay for the freeze? Because the bureaus make money by collecting and selling credit information about you and a freeze halts all of this money-making activity.You'll have to send freeze requests to each of the three separate credit bureaus along with a few specific details. Here are the necessary steps.

Equifax: If you want to apply by mail send a certified letter with these elements: name, address, date of birth, social security number, utility bill for proof of address, payment, and a police report if you are a victim. To apply online, fill out this form hereand submit your information.
TransUnion: To apply by mail, send a letter with the following: name, address, social security number, copy of your driver's license, and payment. To process your freeze online, go to this link.
Experian: To freeze by mail, send a request by certified or overnight mail including the following: name, social security number, date of birth, current and past addresses dating back two years, a copy of your driver's license, and one utility bill. To do it online, visit this link, to sign up for an account to freeze your credit.

Visit each credit bureau's website to see your state's specific requirements and fees are for freezing your credit report. Do you think that freezing your credit report would be a good investment or a waste of time and money?

Money Tip: Stay Alert to Avoid Identity Theft

SavvySugar — Fri, 21 Oct 2011 13:00:05 PDT

Unfortunately, my sister's been hit - someone got a hold of her bank account information and opened a couple new store charge accounts, racking up quite a sum in fraudulent charges. She's not completely negligent with her personal financial information, so I was pretty surprised they got their hands on all of these sensitive stats, but in the digital age, keeping track of your finances means there's no room for carelessness. Stay up to date with your bills and financial statements and follow these tips so you're always on top of it:

Don't carry around your social security card, ever! - It's simple, I know, but nonetheless important to remember. There's no reason to have this card on you while you're out running errands. Store it safely at home, always.
Read your financial statements carefully - Read all of your bills and statements. If your accounts are online, sign on regularly and be sure you're monitoring the account's activity. If something seems off, don't hesitate to call your bank or credit card company to find out what's going on. This also means staying on top of your credit report and knowing your credit score. Sites TransUnion, Equifax, and Experian are each required by law to provide you one free credit report a year, so take advantage. If ever something seems amiss, it's always better to be overly cautious than to be sorry later.

To get the rest of my tips read on.

Are You at Risk For Identity Theft?

Emily Co — Tue, 18 Oct 2011 03:05:04 PDT

We've all heard of horror stories of how having your identity stolen can rack up thousands in credit card bills and destroy your credit score, but how much are we really protecting ourselves? This week is National Protect Your Identity Week, so take this quick quiz to see if you're at risk for ID theft.

How often do you change your passwords to important accounts?

Once every few months.

Once a year.

When I think my accounts have been breached.

Where do you keep your social security card?

In my wallet.

I keep it at home in a safe place.

It's in my house somewhere.

What kind of security do you have on your cell phone?

People have to enter a passcode before accessing my phone.

There is a required passcode, and I can wipe the memory out if I lose my phone.

There is no passcode on my phone, and no way to wipe the memory if I lose it.

What's the best way to protect your credit score from identity theft?

Freezing your credit.

Setting a fraud alert.

Constantly monitoring your score.

How often do you review financial statements?

Once a week.

Once a month.

Once every few months to a year.

What do you do if your doctor or dentist asks for your social security number?

I decline.

I asked them if it's really necessary and let them know that I rather not.

I give it to them.

When you're using public computers you . . .

Log into your email, Facebook, and other social media sites.

Log into all of the above and bank accounts.

Only go to basic sites and never log into accounts.

Stay Safe on Campus With These 5 Things

SavvySugar — Mon, 19 Sep 2011 05:00:55 PDT

Now that you're well into Fall semester, you're also well aware of the lighter and darker components of campus life. There are plenty of strangers you can trust but some folks are unfortunately, unworthy. Going out of your way to protect your valuables and yourself might seem a little paranoid, but can you really afford to expose you and your most prized possessions to potential danger? If Mom is wondering what to get you for the holidays, she'd be happy to hook you up with one or more of these five things to keep you safe.

The Anatomy of a Scam Email

LearnVest — Wed, 07 Sep 2011 00:15:00 PDT

We're thrilled to present this smart LearnVest story here on Savvy!

This morning, I received an email from my first cousin telling me she was in dire straits and needed me to send her money to rescue her. Although the email was signed with her name and contained her normal email signature, it was a scam.

She confirmed this through a follow-up email a few hours later telling everyone to disregard her plea for help. So you never fall for a hacker trap like this, check out the email-and the warning signs that it’s not real:

1. I Was BCCed

Immediately, be suspicious of any seemingly personal email that’s not actually sent to you but rather to many people using the BCC option.

2. It Didn’t Even Say My Name

After all, if she really were going to ask me for help, I’d hope that she’d at least address the email to me. You don’t ask for emergency money to be wired to you in a generic email.

Read on for more clues to figuring out what a scam email looks like.

What Not to Keep in Your Wallet

SavvySugar — Wed, 31 Aug 2011 00:15:00 PDT

We're thrilled to present this smart LearnVest story here on Savvy!

We love the motto “be prepared.”

But when it comes to the average American’s wallet, there’s such a thing as over-prepared. From the looks of our bulging billfolds, we must be heading out each day to open a new line of credit, fill out a W-2, shop at several department stores, use a few gift cards, return an item or two, and grab a fro-yo at our favorite punch card spot on the way home.

1,000 wallets and purses are stolen every two minutes in America (44% of LearnVest readers have had their wallets lost or stolen once, while 8% have had theirs stolen twice or more). While it’s smart to be concerned with online security (check out our article on creating the perfect password here), 76% of identity thefts result from the theft of something physical, like a wallet. Additionally, it costs an average of $8,000 to recover from identity theft.

Most police who receive reports of stolen wallets lament the same thing: people carry way too much stuff in their wallets, handing their entire lives over to identity thieves.

So before you leave the house, read our list of what NOT to keep in your wallet, so you can pare down to just the essentials - and protect your finances and identity.

Social Security Card

This is the number one thing to NOT keep in your wallet. If a thief gets ahold of your Social Security card, he can open credit cards, take out loans or even buy a car - it makes you very vulnerable to identity theft. There is no need to carry this around as an extra form of ID, and even the U.S. government's website recommends leaving your card at home in a safe place. Your Social Security number is only nine digits - just memorize it.

(Learn how to safely store your important information; read this.)

Read on for more items you shouldn't keep in your wallet.

My Wallet Was Stolen: 4 Lessons Learned

Kiplinger — Mon, 01 Aug 2011 10:46:04 PDT

We're thrilled to present this smart Kiplinger story here on Savvy!

Someone stole my stinking wallet while I was pushing a cart at the supermarket. And, to add insult to injury, the wallet was snatched during National Protect Your Identity Week.

I learned a few valuable lessons from the experience, which I would like to share. Here’s what I did wrong, what I did right and how I will be more prepared if it ever happens again (not that it will).

Lesson 1: Stay alert - even in the frozen-food aisle. When I got to the grocery store, I set my purse down in my shopping cart and began walking up and down, turning my back every so often to grab a bottle of this and a package of that. I shouldn’t have been so trusting. When I got to the register, I realized that my wallet had been plucked from my purse and I couldn’t pay for my groceries. I offered to put them all back (and felt grateful that the thief had not taken my purse, with my keys, phone, and datebook).

Lesson 2: Crooks can work fast. So keep the number to report lost or stolen cards handy. Everyone knows that the first thing to do is cancel your credit and debit cards. (Actually, the first thing I did was call my Mom. But right after that I called the bank.)

The crooks were quick: By the time I had retraced my steps in the grocery, driven home and looked up the “800” numbers to call to report missing cards and freeze my accounts, they had already used my cards. The first place they ran was to an office-supply store less than a block away from the grocery. They bought just less than $10 worth of stuff. Why pens and pencils? Why not big-ticket items? Police say criminals often test cards they steal by making small purchases first. They continued to try their luck at department stores and fast-food restaurants, but by that time I had frozen my accounts.

On the semi-frantic drive from the grocery to my apartment I wondered why I had never programmed the toll-free number to report a lost or stolen card into my cell. It’s more important than the pizza-delivery number I have in there.

Read on for what to do when you lose your wallet.

8 New Annoying Things Consumers Need to Be Aware Of

Emily Co — Thu, 28 Jul 2011 12:56:05 PDT

As consumers, frustration is inevitable - it's common to experience bumps along the way. Some of the many hurdles we have to deal with include marketing ploys we fall prey to, rude customer service, instances of fraud, and the list goes on. Each year generally sees a different laundry list of complaints, and here are some of the top new pet peeves of customers in 2010, courtesy of the Consumer Federation of America:

Daily deals. There are a growing number of people who are upset about the misleading expiration date and limitations on the coupons.
Identity theft. Customers are increasingly worried about privacy issues and their data being hacked, given all the high profile news of data breaches in Sony and Citigroup.
Wireless TV services. Apparently, Wireless TV companies are lacking in customer service department. Apple TV and Google TV are relatively new products so they are still fine-tuning their dealings with dissatisfied consumers.
Medical bills. Consumers are saying that medical bills are more confusing than ever because healthcare providers and insurance companies are in conflict about which claims need to be covered. Further, some providers aren't properly submitting the claims.
Timeshare recovery. Companies that assure customers they are going to recover money for people who lost some bucks to timeshare resale firms are apparently charging "hefty" fees to their clients.
"Grandparent scams". People are falling for spam emails from fake friends and family who ask for financial help.
Companies that buy your car. There are more and more complaints on car-buying companies that write bounced checks to customers and don't pay off liens on the cars.
Fraudulent tax companies. A number of firms offering tax help to customers at a low price or for free are apparently scamming people out of their money and are charging heavy fees when customers can actually get the help for free if they look in the right places.

Now that you know about these eight new troubles customers are dealing with, make sure you don't fall for them. Always do your research when money is involved, and enlist the help of consumer agencies to aid you in your fight.

Web Shopper's Dilemma: Credit, Debit, or PayPal

Emily Co — Fri, 19 Nov 2010 06:00:37 PST

You're about to purchase that lovely dress you've been eyeing online, but when you're checking out, you face a dilemma - should you pay by credit, debit, or PayPal? It's the age-old question of online shopping, and the worry of having your identity stolen can eat at you. Turns out, if someone has used your account illegally, you're more like to get your money back with a credit card, because it offers the best legal protection for shoppers. The New York Times says:

“The strongest protections are when you pay by credit card,” says Carole Reynolds, a senior lawyer at the Federal Trade Commission. Under the Truth in Lending Act, consumers’ maximum liability for unauthorized use of their credit card is only $50, and when a card is used online, it’s zero.

The catch is, the refund of your money will go smoothly for all three if you report it immediately. In the case of debit cards, there's a law that protects consumers against identity theft, but the protection wanes off after a while. There are set deadlines of reporting fraud for debit cards, and if you miss it, you'll encounter a huge tangle when you're trying to get your money back. The same goes for PayPal, and according to the New York Times article, you'll have the hardest time getting your money back from PayPal. The lesson to learn in this is to always be on top of things during money transactions and carefully monitor any suspicious behavior. I'm curious, which method of payment do you prefer, and why?