Just Joyce

Don't Lose Your Mind Along With Your Identity

While some people still think it’s unsafe to bank online, experts say that you have a better chance of having someone steal from you if you rely on paper checks and statements! The reason for that is that a whole month might go by before you notice unusual activity on your account. If you bank online, and if you check your balances frequently, you’ll notice when something doesn’t look right. I can now vouch for this with personal experience! 

 

The first thing I do every morning is check my bank account online. One of the reasons I do this is because I only use a debit card and I like to download any transactions right away so my register on MS Money is always updated.

 

One day last week I logged in and discovered a check pending for $987. It didn’t look familiar to me, and in researching it, I learned that this check had been written to Wal-Mart in

Lafayette

,

Louisiana

. I live in

Houston

,

Texas

, and hadn’t been to Wal-Mart or

Louisiana

! I called the bank to report it, thinking that it was probably just a bank error and someone else’s check had been charged to my account.

 

The next day my banker called and told me I needed to come in and sign a fraud affidavit. Apparently it was not a bank error. Someone had my bank account information and she felt that if they’d written one check, they might have had a whole pad of them printed and would keep going until there was no money available in my account. 

 

I couldn’t close the account because I had a couple of checks outstanding. I transferred most of my balance to another account, and decided to watch my account over the weekend.  I then proceeded to switch my electronic payments from one account to the other. It wasn’t as time consuming as I expected it to be.

 

On Saturday morning, another check came through. A check for $1032 was written to Dillards. I could see the impression of the check, and it looked just like my checks, including my husband’s legal name with mine, and our address. The scary thing was that I could see my personal driver’s license number scrawled across the top of the check!

 

I remembered an email I had gotten from a friend just recently about what to do when your wallet is stolen. You’re supposed to call the credit bureaus to have a fraud alert added to your account. I called Experian, and was told that they would contact the other two agencies for me.

 

Equifax: 1-800-525-6285 

Experian (formerly TRW): 1-888-397-3742

Trans 
Union: 1-800-680 7289

Social Security Administration (fraud line): 1-800-269-0271

 

Since I’m not on Social Security yet, I didn’t call this number, but it’s here for those of you who might need it.

 

At the end of the call, they offered a more secure fraud package for $14.95 a month. Looking back, I don’t think I need it, but I took it. They know that you’re scared of losing your identity and will pay anything to keep your information secure. This package does allow me to look at all of my credit bureau reports online to see if there’s anything suspicious. The agent who helped me told me it would be a good idea to take the service for a month or two, and if there’s no activity, I could always cancel it.

 

Once the bank was open on Saturday, I went in again to report the second charge. I had to fill out another affidavit. I also stopped overdraft banking on that account and had them make a note on the account stating that it had been compromised. Hopefully that will stop any future unwanted approvals.

 

When I got home, I called the sheriff’s department. Since it was Saturday, they said they’d have to have someone come to my home to take the report. I hated to take an officer away from something more important, but didn’t want to wait, either. A nice young man came out and took my report and gave me a case number. He told me if I had any more activity on my account to call and they could add it to this report.

 

The thing that puzzles me is that I rarely write a check. Most of the checks I write are for tithing at my church. The others are usually gifts to friends or family. I do everything else electronically, and the checks I write are written at home.

 

So how did someone get my information? I have no clue. No one could have photographed my check with a cell phone at the checkout lane because I always use my debit card. I didn’t lose my wallet and no checks are missing from my drawer. 

 

I did lose my wallet in

Las Vegas

about two years ago, and my driver’s license was inside. It seems crazy to think that license ended up in the hands of someone who knew how to access my checking account, but crazier things have happened. When that license had to be reissued, I wish I would have had them give me a different number. My next call will be to the Department of Transportation to check on doing that.

 

Now I have to wonder if they also have my social security number! If, by chance, this information was obtained by someone who works in the bank, they probably have it all.

 

I’ve been surprised at how many people I know have already been through this! I have told quite a few people about it, and most of them have said, “Oh, I had that happen to me one time.” Good grief! The nice officer told me that since the crooks only get a slap on the hand, if they are ever caught, they just go back out and do it again once they’re released.

 

Here are some ideas:

 

1. Always      be sure that your checks and debit cards are secure.
2. Be      careful when writing checks in public places
3. Check      your accounts online frequently
4. If you      notice unusual activity, report it immediately
5. Talk      to others and educate your friends

 

I think (and hope) that my case is a simple case of someone trying to steal what they can from my checking account. At this point I’ve seen no evidence of identity theft. Hopefully by filing all these reports and freezing my credit bureau information, that’s as far as the crooks can go. However, I am including this link so you can learn more about how to deal with identity theft – and how to prevent it.

 

Identity Theft Victim Guide http://www.fraudguides.com/consumer-id-theft-guide.asp

 

The key here is to be aware!

Have an Emergency Fund

I recently read Paul Martinelli’s loving story about trying to get to his grandmother, Bella, before she died. He wanted so badly to hold her hand one more time and to tell her he loved her. He tried making travel arrangements to leave immediately, but couldn’t afford the $600 ticket. He had to wait three days to get a supersaver ticket, and when he finally got there, his dear Bella had already passed away.  He was too late because he didn’t have the money to get to her in time. 

 

He decided at that point that he would never allow himself to sink so low again. He would never be in the position that he couldn’t afford to be close to his family if he needed or wanted to be.

 

How helpless would you feel if you needed to be there for someone you love,  and money was the only thing holding you back? 

 

What if this was the only chance you were given?

 

What can you do to make sure you’re never caught in this predicament?

 

Establish an emergency fund!  At the very least, have a credit card that isn’t maxed out so you can use it if you have to. In Dave Ramsey’s, “Total Money Makeover,” he teaches the reasons why you should not only get rid of your credit cards, but get rid of the balances. Once you do that, he teaches the importance of the emergency fund. If you have a baby emergency fund of about $1,000, then you won’t ever have to use the credit cards again. 

 

Here’s why an emergency fund is so important. There are just some things you can’t plan for, and the older you get, the more surprises come your way.  Believe me. These are just a few that I’ve experienced. 

 

Last week we got a family email telling us that my husband’s cousin had gallbladder cancer.  A few days later I got an update saying that the doctors were giving him three to six months to live, but agreed there was nothing they could do for him. They sent him home to die and the family started to gather from all over the country. Today’s update told me that David had passed away this morning. With today’s gas prices, it could be a real hardship for some to even drive to the funeral. It would take some serious calculating to see if it would be less expensive to fly or drive, and if you have to rent a car when you get there, that just adds to the cost.

 

Sometimes you have some advance warning, and sometimes you don’t. Last year when we were told my mother wouldn’t live another week or two, there were grandkids in other states who wanted to see her one last time. 

 

My niece called the airline to make a reservation. The usual fare of a couple of hundred dollars more than doubled on such short notice. When she told them that she needed to make this trip because her grandmother was dying, they told her about the bereavement fare.  They said if she brought back the documentation proving that her grandmother was actually dying, they would refund part of her fare. She bought the ticket, and after going through the hassle of getting what she needed for this “discount”, I think she only got about fifty dollars back.  The bereavement fare is a joke. Don’t ever believe that these companies really feel sorry for you. The agent might, but she has to follow company policy, and with so many airlines filing bankruptcy, they’re out to get all they can.

 

When our friend, Mark, was killed recently on his motorcycle, all the members of his family were en route for a family reunion that weekend. Unfortunately, he was killed before they got there, but his widow found great comfort in being surrounded by their family. But as soon as they all gathered in

Houston

, they had to start making arrangements to either drive or fly to

Kansas

. Mark was born in

Kansas

, grew up there, and that’s where he wanted to be buried. While many of them had probably used credit cards to get to

Houston

, now they had additional charges to get to

Kansas

.

 

Interesting how the place you call “home” as a child is where most people want to be laid to rest when they go back “home.”

 

My mother had prepaid for her funeral arrangements in

Tennessee

ten years before her death. She was born in

Tennessee

, spent a great deal of her life there, and wanted to be buried on the piece of land her family had donated as a cemetery.  While my sister had flown to

Houston

in Mom’s last days to be with her, she now had to go back home, gather her family, and then make the drive to

Tennessee

. At the same time, we were making our drive from

Houston

. My sister’s family and mine all met at an off-season lodge with a friendly, family atmosphere. We were all totally surprised when they did give us a discount at our departure. Of course this was in a town of only a few hundred people where everyone knew everyone. They truly were sorry for our loss.

 

People just don’t grow up and stay in their own hometown anymore, but for some reason we want or need to go back there when this life is over. There’s something comforting about going home, wherever that home is. It’s important to respect their wishes, but it can sure wreak havoc on your time, your bank account, and your emotions if you’re trying to get from Point A to Point B in a short amount of time.

 

You will still have to deal with emotions when you’re dealing with the loss of someone you love, but if you get that emergency fund started, at least you have the option of being where you need to be.

 

Dave Ramsey - Good, Better, Best

Dave Ramsey
Good, Better, Best

About fifteen years ago my husband left his career job and got a cash settlement from his employer. After a lifetime of racking up credit card debt and paying it off with bonuses, only to max out our credit cards again, I paid off the cards and swore that I would never let us get in that kind of shape again. Since then, I have used credit cards, but have always paid them in full before the due date. I have no idea how much money I have saved by avoiding the interest, but I do know that it sure feels good.

 A couple of months ago I started reading the Dave Ramsey book, “Total Money Makeover.”   I think I’m a good money manager already, but I love reading about saving money and wanted to see what he had to say. By the end of the second chapter, without any warning, I jumped up out of my chair, pulled my only credit card out of my wallet, and cut it up!  It was a little scary, but I felt like I was in control.

 

Dave had stories in there of couples who had good jobs, who used credit cards, and even paid them in full each month. One of the stories made a real impression on me because this couple thought they had it all together, and then without warning, the husband lost his job. It had been easy to pay the credit card bill in full with a paycheck coming in, but now they couldn’t even make the minimum payment.  They were in danger of losing everything.  It really hit home.

In the past, when I used my credit card, I knew that I couldn’t just go out and charge up to my credit limit of $11,000. I had to stay somewhere in the neighborhood of $2,000 to be able to pay it in full when the bill came in. I used this card for everything instead of cash because I earned points from using it.  I was okay with that, but hadn’t really thought about the dangers of charging that much without having the money to pay it off at the time. Reading this story, though, I decided enough was enough. I cut up the card.

I decided from that point forward I would only use cash. If I could get through that first month where I had to actually pay the credit card bill in full, and also have enough cash to pay for my purchases, it would be a piece of cake going forward.

Here’s what I did:

1. I paid      off the card. I didn’t cancel      it. I just cut it up.
2. I      called all vendors who charged my credit card automatically (i.e. Netflix      and others) and gave them my debit card as my new form of payment.
3. I      checked my credit card online about once a week, and if anything trickled      in, I went ahead and paid it.

It took a giant leap of faith to cut up that card, but it made so much sense. Not having that card has made me an even better shopper. I know that if I have the money in my account, I can choose to make my purchase, or I can choose to keep the money. Most of the time, just knowing I can afford it makes it less of a temptation to spend the money.  

Of course, just spending from your debit card means that you have to have the funds available. You don’t want to end up with insufficient fund charges just because you forgot about your Netflix charge! Our checking account is tied to our savings account, and if we ever do have a surprise charge to our account, the bank will transfer the funds automatically. It’s a good feature to have, but not one I want to depend on.

We just returned from a trip without using a credit card at all! We had money in the checking account to cover the hotel and rental car, and we used cash for our purchases. It sure is nice to get home and not have to face that credit card bill next month.

Like Dave says, “Live like no one else so you can live like no one else.” Basically, take those baby steps now to eliminate your debt so that one day you will be in such good shape financially that you will be able to enjoy a higher standard of living than you ever thought possible.

I am so in love with this book that I bought extra copies to give as gifts. What better way for that new graduate or newlywed to start out than with this great advice? 

Copyright 2008 Joyce Moseley Pierce. Joyce is the owner of Emerson Publications and editor of the Family First Newsletter. Visit www.emersonpublications.com to learn more about preparing your family for all stages of life. Visit www.prepareandsucceed.com if there’s just not enough paycheck at the end of the month.