Regular Check-Ups

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Several years ago, I received a phone call from my bank. I was surprised to receive this phone call as I was probably this bank’s least profitable customer. I had recently moved to New York, it was my first bank account there and the account was remarkable only in how low its balances could get, especially just after I paid my rent check. The very nice woman on the line was calling to let me know that the bank believed that they had discovered fraudulent activity in my account. The bank noticed that, at least once a week, between $9.95 and $14.95 was being withdrawn from my account. The withdrawals were regular and, every time it happened, the name of the company making the withdrawal was slightly different from before. The regularity of the withdrawals, along with the amounts and the slight name changes, were all red flags for the bank. I was very grateful that the bank had spotted this and, quite frankly, rather shocked. I had assumed two things – first, that I was too poor to rob and, second, that the small transactions going through my account, on the rare occasions that I actually noticed them, were trips to the pharmacy or a lunch that I had forgotten about. It turned out that I was wrong on both accounts and an unscrupulous party took advantage of the lax attitude I had toward my finances. For over three months, at least once a week, money had trickled out of my account. Luckily for me, the bank helped me trace the amounts and credited my account. It seems that, in more recent times, banks are more likely to allow this kind of fraud to continue. They have decided to earn fees from these transactions instead of alerting their customers of these possible frauds.

After this incident, feeling violated by this invasion of my space (and funds) I became very diligent about checking my money. I had been very lucky. Yes, my money was being taken without my knowledge, but I was able to recover most of the funds and I had the bank looking out for me. Not many are so fortunate these days. It is important, therefore, to take steps to minimize the chances of unauthorized access to your bank account or, at the very least, to be able to quickly spot, stop and dispute transactions that you don’t recognize.

  • Be very careful about who you give your personal and financial information to, especially when this request comes via a cold call. Even if the person on the line sounds official, check the credentials. If need be, hang up and call up the organization that claims to be on the phone, using the contact number that you have in your records. If the person on the phone is a valid representative, they will not mind you checking to make sure things are above-board.
  • Check your bank and credit card balances often – at least once a week, if you can. Just about every bank has online banking facilities available to customers. Here, you can review recent transactions and make sure you know what happened with each one.
  • Be aware of the risks to seniors that you know, be they relatives or friends. Because of programs that tend to affect seniors, such as medicare and social security, they are particular targets for the unscrupulous. Fraudsters will call senior citizens and either cajole or scare them into giving up their information. Check in with those who may be vulnerable, either because of advancing age or lack of computer savvy, and make sure no one is raiding their accounts.
  • Safeguard the physical information you have on your accounts. Keep statements and account numbers in a safe place. The last thing you want is to find out that a guest or someone who has worked in your home, has taken your information and used it to gain access to your money. Don’t leave the temptation out in the open – that is only asking for trouble.
  • Should you come across odd activity in your account, be sure to call your financial institution and look into the matter. Time is of the essence here as, often, after a time, it becomes near impossible to reverse a transaction, even if you can show that it was unauthorized.

Once keeping track of your money becomes a habit, it also becomes a very simple exercise. If you check-in regularly, there are only a few transactions to remember at a time. Also if you check-in regularly, you will also become more familiar with your own spending patterns and be better able to spot irregularities. As a bonus, if you check-in regularly, you may also realize that you have bad spending habits that need some rehabilitation. It doesn’t matter how much or how little money you believe you have, there is always enough for someone to take away from you. All of this monitoring of finances may sound a touch paranoid, but paranoid is often better than broke.

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3 thoughts on “Regular Check-Ups

  1. […] I have mentioned before when people steal, they tend to start small and then escalate. In 1991 Crundwell transferred $181,000 to the RSCDA account; in 2008 she […]

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  2. […] to pay for gas) I also check my bank and credit card accounts just about daily. I have already shared my story about how I learned how important it is to keep track of my finances. The risks brought about by […]

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  3. […] and he took advantage of this opportunity. True to the trend, Christopher Myles started his fraud on a small scale, using the President’s credit cards to pay for personal expenses. He escalated quickly and by […]

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