There is a TownePlace Suites hotel in downtown Cincinnati, Ohio. It may be a very nice place, but I have never been to this hotel before, and I have never made any plans to stay there. Yet somehow on a Friday night in March, I received an unexpected alert that my credit card was used to spend hundreds of dollars at this TownePlace Suites hotel miles away from me. I had just parked myself on the couch trying to enjoy a nice glass of bourbon to end the week…this set of charges obviously didn’t come from me!

Fortunately, my credit card company recognized the issue immediately and sent me a follow-up text and email to verify the suspicious purchases. I was able to call the card company, report the charges as fraudulent, cancel my current card, and have a new card shipped to me within a few business days.

In the end, spotting the fraudulent charges quickly and acting quickly to report them helped mitigate a lot of potential additional headaches. The charges were ultimately reimbursed at no net financial cost to me, but I still had the time hassle of being on the phone dealing with the situation (on a night that was supposed to be relaxing) and then later I had to review and update several recurring payments that were set up in connection with the now-cancelled card.

I am passing along this personal story to highlight that the risk of identity theft is always present, but there are many ways to proactively reduce the chances of becoming an identity theft victim or to at least reduce the severity of an event if your identity is stolen. Here are some practical tips:

Shred sensitive documents
Any unwanted documents with sensitive personal information (Social Security number, bank account and credit card numbers, etc.) should be physically shredded. If you don’t have a shredder at home, you can bring documents to our office, and we can have them shredded for you.

Be cautious when providing your Social Security number
Not all places that ask for your Social Security number actually need it. You can refuse to provide this when it is not necessary. If a company uses your SSN as a customer identification number, you can typically request to have an alternate number connected to you.

Review credit card and bank charges regularly
The sooner you can spot any fraudulent charges, the easier it will be to correct them. Most bank and credit card companies allow you to set various alerts to keep you updated about your account activity. For example, you may be able to set a text/email alert to be notified when there is a charge to your credit card above a certain amount.

Create “virtual cards” for online purchases
Some credit card companies allow you to create multiple “virtual cards” connected to your base credit card account. A “virtual card” can then be used for online payment to one specific company so if this virtual card number were ever compromised, it would not affect your base credit card account number.

Review your credit reports regularly
This will help you monitor your credit accounts and balances frequently and catch any issues earlier. You can obtain your credit reports directly from each credit bureau (Equifax, Experian, TransUnion) or, even easier, check the current credit monitoring features offered through your bank or credit card company. Many companies already offer free and updated views of your credit report as part of their services.

Freeze your credit
When you freeze your credit with each credit bureau, no one can open an account, apply for a loan, or open a new credit card based on your credit file. If or when you actually need to apply for a credit line, you can request a temporary removal of the freeze that will allow you to use your credit normally (for example, if you are refinancing a mortgage.)

Verify suspicious requests using trusted methods
If you receive a suspicious request for information or payment from someone claiming to be from a financial institution, it’s best to verify the request using a known, trusted method of contact. For instance, if you receive an unexpected email from your bank asking to supply account information or a password reset, call the bank directly using a phone number you can verify separately from the email to confirm if the email is legit.

Use best practices for managing your passwords
Add password/passcode protection to your phone and other devices. Especially for your most sensitive accounts (like financial accounts), enable two-factor authentication to add an extra layer of security. You should use different passwords across your accounts, and consider using a password manager to help organize and access your various login credentials.

Avoid using public Wi-Fi
You never know who else has access to open public Wi-Fi spots, so it is best to avoid using these altogether. At a minimum, you want to avoid logging into any sensitive accounts if connected to public Wi-Fi. Similarly, make sure that your personal home Wi-Fi access is password-protected.

Keep software on your devices updated regularly
Your phone and other devices regularly push out software updates that help keep your device protected against new security threats. It’s typically best to keep up with these software updates so that your device security avoids being too out-of-date.

We encourage you and your family to review and implement as many of these identity protection strategies as practical for your situation. With higher levels of intentional vigilance, we can all help reduce the chances of falling victim to identity theft.

As always, if you have any questions or concerns, please reach out to us.

This material is not financial advice or an offer to sell any product and is not a recommendation to buy or sell any particular security. The opinions expressed are those of the Saling Wealth Advisors’ Management Investment Team and are subject to change without notice.

Saling Wealth Advisors (“SWA”) is an independent SEC registered investment advisor. Registration does not imply a certain level of skill or training. This material is provided for informational and educational purposes only. More information about SWA including our advisory services, fees, and objectives can be found in our Form ADV Part 2A, which is available upon request.