If you’ve watched the news lately, you probably know that Home Depot is currently investigating a potential security breach that could leave an unknown number of customers at risk for credit card fraud. Last year, just before the Christmas holiday, Target made headlines after some 40 million of its customers’ credit card numbers were stolen by hackers. Around the same time, a variety of other retailers – including Neiman Marcus and Sally Beauty Supply, among others – also reported data breaches that put customers at risk.
Of course, high-tech data breaches aren’t the only way that your credit or debit card information can fall into the wrong hands. Criminals have come up with all kinds of ways to steal sensitive financial information, and their methods range from sophisticated hacking and phishing schemes to old-school techniques like dumpster diving for bank statements.
Want to make sure your money stays where it belongs – and far from the prying eyes of scammers, schemers, and hackers? No worries. I’ve compiled a list of six easy things you can do to protect your data.
1. Buy a shredder. Sure, many tech-savvy potential identity thieves try to steal your stuff via email or hacking – but that doesn’t mean that they don’t sometimes resort to old-fashioned methods like digging through your trash looking for bank statements, credit card bills, or receipts with account information on it. The good news is that this kind of theft can be completely avoided if you shred your sensitive documents before you throw them away. You can pick up a small, basic shredder for around $30 or $40 at any big-box store. It’s money well-spent.
2. Check your banking and credit card activity often. Scammers will often do a few small “test runs” of stolen debit card or banking info: They’ll use your account to make a couple of very small purchases (think a few dollars here or there) to see if you notice. If you’re not logging into your bank account often or reviewing your transactions in detail, you might not notice fraudulent activity until it’s too late.
And don’t forget about your credit cards! Make a point to log in to your credit card accounts on a regular basis, too: Be on the lookout for small “test” transactions or purchases from unfamiliar stores or websites. If you see anything that looks suspicious, call customer service right away.
3. Leave your credit cards at home. Carrying multiple cards means multiple opportunities for fraud in the event that your wallet is lost or stolen. The best thing to do is to leave all of your credit cards at home in a secure place. When you need to use a credit card, take one with you and leave the rest at home.
An added bonus to this approach: When you leave the plastic at home, you can’t use it for unnecessary impulse buys. This is a “win” for anyone trying to stick to a budget and curb irresponsible credit card use!
4. Check ATMs and POS terminals before you use them. Hacking isn’t the only way that crooks gain access to your account information. Some criminals use a technique called “skimming” to capture and store your debit card info and your PIN number.
Skimming typically involves the use of fake (but convincing!) equipment such as small cameras and fake card readers and PIN pads. The good news is that you can spot some of this equipment if you know what to look for. Before you use an ATM or POS terminal, check for loose, crooked, or discolored parts; evidence of tape or glue; or anything that looks odd or out of place. If you have any doubts, don’t use the machine.
5. Review your passwords. Good online passwords should follow a few basic rules: They should contain a combination of letters, numbers, and symbols such as “$” or “&.” They shouldn’t be too obvious (like “password” or “12345”) or too easy to guess with a little research (no kids’ or pets’ names; no wedding anniversaries or birthdays). It’s also a good idea to use a unique password for each account – that way, if your credit card account gets hacked, your bank account is still safe.
If your passwords are a little too easy or repetitive, it’s time for a change.
6. Opt in to account notifications. Most banks and credit card companies offer a variety of notifications that can help you spot fraud. You can receive text alerts when your credit card number is used remotely or when there’s been activity in a strange city or country. You can ask for an email any time a purchase or ATM withdrawal exceeds a certain dollar amount. It’s helpful stuff, but in most cases you won’t receive any of these alerts unless you opt in. Visit your bank and credit card lenders’ websites to find out what kinds of notifications you can opt for.
If you’ve ever lost sleep wondering if your credit card numbers are secure and your bank activity is all on the up-and-up, you already know how important it is to stay on top of your financial security. Sure, hackers and scammers are a sophisticated bunch – but with the wide range of security measures available, you can make sure that they don’t make off with your hard-earned money.
Have a safe and secure September!