Keeping your personal information private can be extremely challenging in today’s world.
However, protecting your financial information or any information affecting your money is vital.
Setting financial boundaries with companies you have a relationship with can help combat identity theft.
Here are 7 steps you can take today to ensure your financial information is protected:
1. Don’t let companies save your credit card or debit information
Allowing a company to keep your credit card or debit card information on file exposes you to unauthorized charges, either intentional or accidental. If that company becomes the victim of a security breach or hacker attack, then it is possible your credit card information could be exposed.
Instead, opt out of allowing a company to store your card information. Or use a prepaid card or a card with an extremely low balance or set to expire soon. Most companies will pull a $1 or two to ensure the card is active. I will sometimes use a card with only a $1 available balance and add the exact amount when needed.
Suppose you’re offered a discount for using a company’s autopay. In that case, you have to weigh the advantages of storing your card in their system versus the disadvantages of potential identity theft. Remember, no matter how good a company says its security protections are, it can still be hacked or have an unintentional data breach.
2. Use an alternate email address for placing orders and billing and invoice information.
Consider using a dedicated email address for placing online orders, receiving bills, or getting copies of invoices. Separate your financial communications from your social and work emails. It will help you spot any problems faster. In addition, you will know immediately if a charge on your credit card is fraudulent or unexpected because all your communications will be going into one email inbox.
3. Don’t give out your social security Number. Ever.
Have you ever visited an urgent care facility or your doctor’s office and filled out information forms with your social security number? Did you provide it?
If you did, you could have exposed yourself to identity theft.
While no laws prevent companies or healthcare facilities from asking for your social security number, you are not required to provide it. Often, they are looking for an account identifier should you default on payment. It makes it easier to send your account to a collection agency or reported to the credit bureaus. Sometimes, they use your social security number as an account number. Ask how it will be used. If it is strictly an account identifier, ask them to use something else.
You should only provide your social security number when:
- Applying for credit or a loan
- Opening a bank account
- Completing state or federal income or business tax returns
- Providing it to a human resources department
Think carefully before handing over your number for any other product or service. Be clear on its intended use.
4. Use virtual credit card numbers for online shopping
Virtual credit card numbers are a safer way to shop online or in an app. It replaces your physical card number with a unique virtual card number. It shields your payment information and protects you against fraud. Virtual card numbers make your shopping experience more secure, especially on websites you have never previously used.
5. Your apartment or condo unit number is not required
When I moved into my condo, the mail carrier insisted on placing my name outside my mailbox. I considered it a violation of my privacy and a security issue. So I’d remove my name every time he would place it on the outside of my mailbox. Eventually, he got the message.
If you live in an apartment complex or condominium development, only offer up your unit number if you are receiving a physical item like mail or package. In any other case, your unit number isn’t a requirement. It removes information that a fraudster can use to access your personal data.
Likewise, when signing up for a service online, omit your unit number. A good rule of thumb is that if you’re providing your unit number for a delivery or something like car insurance where it distinguishes you from everyone else in your building, then OK.
6. Secure your smartphone and tablet with biometrics.
If you’re anything like me, you use your smartphone for everything. It provides easy access to all aspects of life including personal finance information. Credit scores, bank accounts, loan balances, are just a few that come to mind.
Smartphone technology now allows you to lock down your smartphone. Biometric identification – using your fingerprint or facial recognition – to gain access to your phone data dramatically reduces the chances that your personal information will fall into the wrong hands.
7. Ditch public wifi for a VPN connection
Sitting in a coffee shop or on public transportation seems the perfect time to order those concert tickets, pay a few bills, or buy those boots. Just log into the open wifi connection and go online, right?
WRONG.
Public wifi connections are notoriously unsecure. Hackers may see whatever you are doing. Avoid any activity on public wifi that involves your sensitive information. You can also walk away from a public wifi connection with a computer virus or malware giving hackers access to your computer or smartphone. The best way to reduce that risk if you have to use a public wifi connection is to use a virtual private network. (VPN).
8. Don’t confirm personal information when someone calls you
This is a massive pet peeve of mine. Someone from a company or organization will call you and the first thing they say is, “we need to talk to [your name here] about an important issue. Can you confirm your address, date of birth, and social security number?
The answer is NO. Tell them you would be happy to talk to them but don’t confirm personal information for someone who calls you.
First, you don’t know who the person is or whether the company they say they are representing is legit. Second, if they are calling you about a financial or other personal matter, then they should already have your information. There’s no need to “re-confirm it.” Often debt collection agencies or salespeople will use this particular script. You are under no obligation to provide them any information, no matter how much they pressure you. You can tell them to send their message via a letter using the address they have on file. Then end the call.
