Jill Russo Foster

Tips for Successful Personal Finances

You are here: Home / Archives for theft

In case of emergency…

I did a talk last week about financial organization. We all know that we need to keep our financial paperwork in order but sometimes we forget the basics.

The first step is to know what is in your wallet or purse. If I were to take your wallet away from you right now, could you tell me what’s in it? All of it? Most people can tell me most, but not each and every item.

Why is this so important? If you lost your wallet or purse, could you quickly call to cancel your credit cards and replace each and every item? Probably not! Did you know that the sooner you cancel your credit cards, the less liable you are for purchases made in your name?

Take an inventory of everything in your wallet or purse. Start with your credit cards. I suggest that you make a copy of the front of each card. Make sure to write the toll free customer number for each card on the copies you made (that number is found on the back of the card). You should also make copies or keep records of other items in your wallet that you will need to cancel or replace. That could include your driver’s license or any club cards you might have. Make copies of those as well, or create a list. Then keep these copies in a safe place where you can easily find it. I’ve spoken before of having two copies in case of a home disaster like a fire or flood. You might want to keep one copy in a locked home safe and one copy in a safe deposit box at your bank.

Keeping a record of what is in your wallet or purse is one step towards financial organization. Do it this week to be prepared in case of an emergency.

Guard Your Social Security Card

Your social security card has been lost or stolen – what do you do? That’s a tough question. If there is no evidence that someone is actually using the number, neither Social Security nor the FTC will help you.

If you do have evidence that someone is using your number, you can contact the FTC at 1-877-IDTHEFT or FTC.Gov. If you are unsuccessful in trying to correct the situation, Social Security might give you a new social security number. You can contact them by calling 1-800-772-1213. For more information, visit SocialSecurity.Gov.

You should also report the loss to each of the three major credit reporting agencies: Experian, EquiFax and TransUnion. Ask them to put an alert on your credit report. This will send a signal to any merchants or credit companies that the person requesting a new account may be using stolen information. Actively monitor your credit by ordering free reports from AnnualCreditReport.com

If you are in a state that allows you to put a credit freeze on your credit report, I would do this as well. That way, no one can access your report unless you authorize them to do so. There is a charge: First a fee to freeze your report, then another fee to unfreeze your report when you apply for credit cards, loans, or insurance. But, it’s better to be safe than sorry.

With that thought in mind, remember to keep your card in a safe place and not in your wallet.

How safe is a safe deposit box?

I have often told you to use a safe deposit box (SDB) to store copies of your most important paperwork. That way, if something happens to your home, you can deal with the emergency with all your paperwork intact. But people also use SDB’s for items that they consider irreplaceable, like jewelry or stock certificates.  While it’s not necessarily wrong to use an SDB this way, you should be aware of the risks.

Safe deposit boxes are loss resistant, not loss proof. You can lose the contents of your SDB if something happens to the bank itself.  Consider what could happen if your bank is in a fire or flood. SDB’s are typically made of metal. They are not water-proof or heat-proof, which means the contents could melt, be scorched, or water damaged. Store paper documents in a water-tight plastic bag. Keep back-up copies of flash drives or photographs. Metal items, like jewelry or antique coins, should be stored in a hard-plastic container to help prevent melting.

You should also know that you will NOT be reimbursed by FDIC for the value of jewelry or antique coins stored in an SDB. The FDIC only reimburses the cash in your bank account, not personal property.

You will also NOT be reimbursed by your renter’s or homeowner’s policy (unless you have the items insured separately.)

Finally, know that your SDB is a rental. Keep up on payments or the contents will be turned over to your state’s Unclaimed Property department. A safe deposit box is a great resource, if used wisely.