Don't panic! Avoid identity theft by taking the right steps after your wallet is stolen or lost.
10 Things to Do ASAP If Your Wallet Is Lost or Stolen
Call the police
If you suspect your wallet was stolen, the first thing you should do is call the cops. Even if the police can’t devote resources to track down your wallet, filing a report will cover you in other ways. For example, if someone steals your identity, you’ll have to prove that you aren’t responsible for any charges the thief racks up in your name.
“Someone is going to lose here, and it’s either the credit card company, bank or you,” Siciliano says. “If you say you’re a victim, you need to prove it.” That police report could be the proof you need to show you’re telling the truth about false charges.
Cancel your debit and credit cards
Cancel lost or stolen credit or debit cards as soon as possible. Start with debit cards, which can be more consequential than a stolen credit card. With credit cards, you’re not as liable for fraudulent charges, but if someone starts spending on your debit card? “The money is coming right out of your bank account, whereas credit is a credit card company’s money,” Siciliano says.
It’s important to act quickly. For debit cards, you have two days. You’ll only be liable for up to $50 of fraudulent charges if you report it promptly, but wait longer and you could lose $500 or more. Credit cards, on the other hand, allow 60 days for reporting. Siciliano recommends swapping your debit card for an ATM card, which can be used to deposit or take out money at an ATM, but can’t be swiped to make purchases. Be aware that not all banks offer ATM-only cards, so you’ll have to verify this recommendation with your card issuer.
Put a fraud alert on your credit file
Call the big three credit agencies (Equifax, Experian and TransUnion) and ask them to put a fraud alert on your file. If someone tries to open credit using your name and information, businesses and banks will take extra steps to confirm the identity of the applicant.
“The problem here is that if [thieves] have a hold of your license, they could take your information and put their picture on a faked license,” Levin says. Placing a fraud alert on your credit file is a good preliminary step that can prevent your own credit applications from being held up, for example if you’re in the middle of buying a house.
Freeze your credit
A better alternative to adding a fraud alert is freezing your credit, which prevents anyone (including you) from opening new credit accounts until the freeze is lifted. It’s a great option that will guarantee no one can use your good name. “All a credit card company does is refund your account if there’s fraud,” Siciliano says. “They’re just forgiving the debt, not guarding your credit.”
You’ll have to call all three credit reporting companies to freeze your credit, and call all three again when it’s safe to unfreeze. There’s no fee for this service.
Set up a monitoring program
If you lost your Social Security card along with your credit cards and ID, the experts say it’s important to set up a credit monitoring program. “Once [thieves] have your social security number, they have that option on your life,” Levin says. “It’s not ‘if’ but ‘when.’” (That’s why your Social Security card is one of the things you should never keep in your wallet.)
With a monitoring program, you’ll get an email, text or phone notification whenever you or anyone else tries to apply for credit to confirm that it’s you. Unlike programs that only tell you after the fact, you’ll have a chance to step in before the damage is done.
Keep an eye on your accounts
Thieves can’t make purchases with your cards once you’ve closed your accounts, but that doesn’t mean you should be lax about double-checking your spending—a routine you should make a habit of even if you don’t think you’ve been a victim of fraud. “Closely monitor before and after you lose your wallet,” Siciliano says.
Depending on what your bank or credit card offers, you could get an email, text or app notification alerting you of account activity. In addition, go through your statements regularly to make sure everything is accurate, he says. Some thieves sell cards based on zip code, meaning the credit card company will think charges seem normal and won’t issue a warning, though you’ll recognize the extra costs, Levin says.
Change automatic payments
Once you close your cards and receive a new account number, update any bills you paid automatically with your old cards. “Make sure you don’t miss payments or get any surcharges,” Siciliano says. He recommends keeping a list of your automatic payments and passwords so you don’t forget. Using a digital password manager is the best option, but you can also keep the list in a locked file cabinet or safe.
Call the DMV
Your driver’s license contains your home address, full name and birth date, all of which can make it easy for a thief to steal your identity. “A driver’s license can be a very important piece of information in the authentication process,” Levin says. He says to call your state’s department of motor vehicles and ask them to put a flag on your record. This will alert officials to suspicious activity, such as an identity thief using your license to get an ID in another state. Of course you also will need to get a new license yourself!
Ask for help
Dealing with identity theft may seem quite frustrating, but don’t lose hope. Institutions you already have a relationship with, such as insurance agencies, financial services and even your work’s HR department, can take on some of the burden when you’re dealing with identity theft.
“This is really the hidden benefit people don’t realize they have,” Levin says. “They’re more than happy to make it easy to contact them if you have a problem.” They can do the work for you or with you, which will be a comfort when you’re overwhelmed with stressful calls.
Be prepared for the worst
Being without your wallet is unsettling, and the consequences of identity theft and fraud can be devastating. Being proactive will make the loss less shattering. Before you find yourself in the position to ask what to do if your wallet is stolen, take action.
- Remove things that you don’t use every day. This could be specific store cards, medical cards, Social Security and Medicare cards or papers with personal information.
- Leave a backup credit card at home. That way, if you do need to close your accounts after a theft, you won’t be stuck using cash until your new cards come, Levin says.
- Make copies of all the cards and documents in your wallet. Put the copies in a safe or locked cabinet. “It hurts a lot less when you can see the physical copy of those cards and don’t have to remember what you had in your wallet,” Siciliano says.
- Create a spreadsheet with accounts and phone numbers. Save them securely to your computer or the cloud, Siciliano says. You’ll have every phone and account number on hand to report missing cards, which will keep you from forgetting to close any.
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Sources:
- Robert Siciliano, cybersecurity expert and author of Identity Theft Privacy: Security Protection and Fraud Prevention
- Adam K. Levin, cyber security expert and author of Swiped: How to Protect Yourself in a World Full of Scammers, Phishers, and Identity Thieves
