This article started out as a reminder about the importance of checking your credit card statements.  To say that you should look for duplicate charges, unknown charges, additional or new fees.  And with the way credit card companies are lowering account limits, you should check your credit limit each month to be sure it's the same.  Remember, the Utilization Ratio is your balance-to-available-credit and is the second largest part of your FICO score.  See #5 in this article for more info.

And, of course, look at your interest rate.  It can be changed without notice (usually higher).  It can be incorrectly adjusted by a human employee or a computer glitch.  Check this out:

Did you see that Annual Percentage Rate at the top right side?  That's right – it says 2262.66%!!  Even on the little daily balance of $.94, you get charged more than $21 interest!  So you see, it really is important to look at your credit card, store account, or fuel card statement carefully. 

Don't just look at the minimum payment due and the payment due date, look for errors and contact their customer service department as soon as you notice something wrong.  When they say it is corrected, request an email, fax or letter to confirm it was taken care of.  At the very least, document the date and time of call, employee name and ID number, and write down everything they said they would do and when it would be done by.

Okay, the article started out as a reminder to check your statements and is now turning into an additional reminder to have a plan of action and stay calm in the event you find something unusual.  Why this extra information?  Because I talk to so many people who just lost their wallet or just got a letter stating they may have been involved in a large security breach, or they get an alert about a new account opened in their name.  And the first thing I tell them is to stay calm so we can go through the process of stopping the problem and reducing the effects of it.

So… I checked my bank account statement online today, before ever leaving home.  And there is this odd little $1.00 charge, dated today, for a store I absolutely don't recognize here in Tucson! 

I started thinking about the ways potential thieves check to see if illegally obtained account information works by making a small purchase before trying it on a larger amount.  I thought about the past few days, if and where I had last used the debit card.  I looked through the check register and knew the last check I wrote was yesterday at the dentist's office.  It made no sense and I was getting a bit worried about it.

I called my local branch, the manager was on the other line but they took my name and number for him to call back.  Twenty minutes later, I called again; he was out to lunch.  However I was told to call the 800# on the back of the debit card to report my concerns.  The customer service rep on the phone could not help me because I didn't know a password on the account.  I looked back to the original documents to open this account and found nothing about a password.

I offered the PIN, my birthdate, social security number – nope.  Went to the supervisor after what seemed like an eternity on hold.  She couldn't do anything either and recommended I go to my local branch office.  Now, there's a hint of panic in my voice as I tell her that the branch said to call this number, there is a suspicious charge on my online statement and I want it checked out now. 

She put me back in the automated system to get to someone who could talk to me without this mysterious password.  I followed all the prompts, dutifully typed in the debit card number and my PIN, pushed the button for a representative after waiting through the longest phone menu ever created, got some lovely thank-you-for-waiting music, and then two clicks and I'm disconnected.  So 15 minutes of precious time are now gone.

I printed out the page from the online statement with this glaring $1.00 charge on it, grabbed my checkbook and keys and left the house with determination.  The drive to the bank branch was uneventful, except for the volume of traffic blocking the busy street I needed to turn on to; I'm sure it was triple the most I've ever seen at that corner.  

I finally got to the parking lot, found my spot and headed into the bank.  I waited for the person in front of me to go to a teller window and when I walked up to my window, I kept my voice steady as I said that I need to talk with someone about suspicious activity on my checking account. 

Well, Joseph was thorough and calm.  He asked pertinent questions, including one I hadn't thought of; however, we determine that it is totally unknown and he dials a special number on the phone, hands it to me and says "You'll have to report this".  While I'm waiting for the call to go through, he asked if I know what this store is that is reporting the $1.00 charge.  No, I haven't a clue.  The last time I used my debit card was to get fuel two days ago, nothing today.  Where did I get fuel?  I told him it was at a Valero station on the other side of town and pulled out my receipt. 

Well, there was the name of the store (and it wasn’t Valero) with my $26 gas purchase.  We hung up the phone and he explained to me that when a debit card is used without the PIN, it is processed as a credit card.  The store usually does a small, $1, purchase to be sure the card is valid.  Then they'll take off the $1 and charge the entire amount in a few days. 

I know all of that.  I've written articles about it.  But because I had not used the debit card for a few days, I focused on the $1 charge and the strange store name.  I didn't think it was the fuel purchase and I reacted. 

I share all of this because even when you do everything right, even when you check your statements and monitor your credit reports, things happen and come up.  As a credit consultant, I know what to do and look for.  However, it is very easy to go to extremely concerned when you think your money, accounts, and personal information may be compromised.  

Being able to take sensible, intentional steps to solve the issue can help stop the roller coaster ride with all the what-ifs.  So here are some ideas and a check list for all of us. 

Oh, and by the way, I'm on cash for the rest of the week.

First of all, take the time right now to copy everything in your wallet.  Copy both the front and back of each card, license, membership card, etc.  Your Social Security card should NOT be in there.  Then put that in a safe, locked place.  Then copy and print out this list and lock it up with your wallet contents.

IF YOU THINK YOU ARE THE VICTIM OF IDENTITY THEFT

In the event of identity theft or fraud, keep detailed records of everything that you do regarding the identity theft: names of people you talk to, date and time of conversations, copies of what you mail or fax to anyone.  Notes that are written while it is fresh in your mind are much more substantial than guesses will be later. 

1) Contact the Federal Trade Commission (FTC), the federal clearinghouse for complaints by victims of identity theft. Although they do not have the authority to bring criminal cases, the FTC assists victims of identity theft by providing information to help them resolve the financial and other problems that can result from identity theft. Call the FTC at 1-877-ID-THEFT (1-877-438-4338) or go to the FTC online at www.ftc.gov, click on ID Theft listed under the Quick Finder section. File an online complaint form with the FTC and keep a printed copy, as this will be used to create an Identity Theft Report. 

2) File a report with the police in the jurisdiction where the theft happened, or in your city if you are not sure where it occurred.  Keep a copy of this also as it, too, is part of the Identity Theft Report.  If the police will not make a report, document the information that you attempted to follow the procedures recommended by the Federal Trade Commission, including dates and names. 

3) Cancel your credit cards. Call the issuer(s) immediately. Many companies have 24-hour toll-free numbers to deal with such emergencies; the number is on your monthly statement. When you get new cards with new account numbers, request that your good credit history be continued on the new card.   Report the loss to the fraud department of the bank where you have your checking and savings accounts. Ask about the next steps regarding your accounts, including your ATM or debit card.

NOTE: Be sure to obtain a written statement for each credit card and bank account stating that it is closed and that you are not liable for fraudulent charges on this account. Generally, if your credit card is lost or stolen, federal law protects you from owing more than $50 per card.  But only if you report that the card was lost or stolen within two days of discovering the loss or theft. If you suspect any fraudulent purchases, you may be asked to sign a statement under oath that you did not make the purchase(s) in question. Report a missing driver license to your state department of motor vehicles. Additionally, change your home and car locks if your keys were taken; change your security codes as well.

4) Call the fraud departments of the credit bureaus to place an initial (90 day) Fraud Alert on your account. Contact all three directly.  Even though they are required to contact the other two, you can be sure it is done quickly by calling them all yourself.

Equifax: 1-800-525-6285; http://www.equifax.com/home/; P.O. Box 740241, Atlanta, GA 30374-0241
Experian: 1-888-EXPERIAN (397-3742); www.experian.com; P.O. Box 9532, Allen, TX 75013
TransUnion: 1-800-680-7289; www.transunion.com; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790 

The Identity Theft Report, made up of the FTC complaint form and the police report, entitles you to:- permanently block fraudulent information from appearing on your credit report   - ensure that debts do not reappear on your credit report- prevent a company from continuing to try and collect debts that result from identity theft- place an extended fraud alert on your credit report (up to seven years) 

5) Obtain the three free credit reports you are entitled to after placing the fraud alerts with the credit bureaus. 

Signs of Identity Theft include:

Unknown accounts that you did not open.

Higher balances on your existing accounts.

Inquiries for credit applications you did not apply for.

Addresses for places you have never lived.

Write to the credit bureaus to correct the items attributed to the fraud.  Include a copy of the Identity Theft Report as well as the statements from the creditors that you obtained after reporting the theft and closing the accounts.  The FTC website has sample letters and suggestions for contacting the credit bureaus. 

After 90 days, you will need to contact the credit bureaus to extend the Initial Fraud Alert.  For the next year, continue to monitor your credit reports to assure that no more fraudulent activity has occurred and that previously corrected items do not reappear.