996. This week, Laura reviews nine things you should never carry in your wallet to protect your identity and finances.
996. This week, Laura reviews nine things you should never carry in your wallet to protect your identity and finances.
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A few weeks ago, when I was packing for a ski trip to Lake Tahoe, California, I decided to audit my wallet before just throwing it into my carry-on bag. With so much personal information inside, carrying a stuffed wallet could give a thief the golden tickets to my financial life, if it were lost or stolen. So I really decided to think carefully about what was in it before packing it.
This podcast will review nine items that I never ever carry, whether I’m driving across town or traveling a long distance. I’ll explain why having these items on your person puts you at risk of financial loss or identity theft if they were to fall into the wrong hands.
Welcome back to Money Girl–I appreciate you downloading the show! I'm Laura Adams, an award-winning author, on-camera spokesperson, female money speaker, and founder of The Money Stack, that's my Substack newsletter. You can learn more at LauraDAdams.com.
This is episode 996, which means we're definitely getting close to the one-thousandth Money Girl podcast–I can’t believe this huge milestone is on the horizon! I’m planning a special show and want to feature comments from listeners like you. Please leave a brief voicemail by calling 302-364-0308 and let me and the QDT team know what’s on your mind to celebrate 1,000 shows!
If you have any of the following nine items in your wallet, billfold, or purse, I highly recommend removing them right now.
1. Your Social Security card.
One of the worst items to keep on your person is your Social Security card or even a copy of it. I remember carrying my original card in my wallet for years, but I removed it a long time ago after I understood the potential danger.
Your Social Security number (SSN) is truly the golden ticket for an identity thief. If a criminal gets your SSN, they can do all kinds of bad stuff, like apply for loans, open lines of credit, and even file fraudulent tax returns in your name.
Therefore, it’s critical to keep anything with your SSN in a safe place. For instance, you might put your Social Security card in a locked, fireproof safe at home, or even in a bank safe-deposit box.
The only reason you typically need your original Social Security card is when starting a new job to complete Form I-9 for your employer for employment eligibility verification. However, you might also need the card when applying for certain government benefits or to replace it if your name changes like after getting married.
But in other situations, such as opening a bank or investment account or even getting a driver’s license, you must provide your Social Security number, but not your Social Security card. So, I recommend memorizing your number, so you only need the actual card in rare instances.
2. A pile of cash.
While I pay for just about everything digitally, having a little cash in your wallet is certainly a good idea. There are situations, especially when you travel, when you might want to give someone a cash tip, like a bellhop, housekeeper, or concierge.
But it’s never wise to keep a large amount of cash in one place, like your wallet. If it gets lost or stolen, you likely won’t get it back. While your homeowner or renters insurance does have off-premises coverage for personal belongings that you lose away from home, up to your policy limits, it never covers lost or stolen cash.
I recommend carrying only the cash you genuinely need. And if you travel with cash, divide it up and keep it in different places. That way, let's say if your purse is stolen, you still have cash in a suitcase, another bag, or perhaps a coat pocket.
3. Paper checks.
If you're still carrying around a pad of paper checks in your wallet, they’re an invitation for a thief to steal from you. It’s too easy for a criminal to write a fraudulent check to pay someone with your money.
Unfortunately, even one blank check contains all the personal information a thief needs, such as your bank account number, routing number, and perhaps even your name and address. Instead, consider digital payments, like a physical debit or credit card or even one stored in your phone’s mobile wallet.
4. Debit cards.
While paying with a debit card might seem better than using a paper check, carrying one in your wallet does come with risks. You might even be carrying around multiple debit cards, like one for a personal checking account and one for a business account.
In general, I’m not a fan of carrying and using debit cards. Many people mistakenly believe that because their bank is FDIC-insured, they’re protected from debit card fraud. The FDIC only reimburses you up to a limit if your bank goes out of business–not if a criminal steals your money.
Your protection from fraudulent debit card activity depends on how quickly you report it. Unlike a credit card, which I’ll talk about next, your financial liability with a debit card is unlimited.
Here’s how it works. If you report a missing debit card before a thief uses it, you're not responsible for any unauthorized transactions. Now if you report it within two business days, you're only responsible for up to $50. However, if it takes you 60 days after you receive a bank statement to report unauthorized debit card charges, you're on the hook for up to $500.
Now if your debit card number gets stolen while you still have the card in your possession, you have more protection. In that case, you're not liable for fraudulent activity if you report it within 60 days of your statement date.
However, if you miss that date, you have unlimited liability if it takes more than 60 days to report fraudulent charges. That means a thief could steal a lot from you or even completely drain your bank account, if it takes you a while to notice.
If you regularly use a debit card, consider adding it to a mobile wallet on your phone, like Apple Pay, to make payments that are much more secure than using a physical debit card. You’ll be able to use it at any store or automatic teller machine (ATM) with a contactless terminal.
But if you must carry a physical debit card, never write your personal identification number (PIN) on the back of the card or put it on a piece of paper you keep in your wallet. Also, it’s not a good idea to use debit cards for online purchases. A cyber thief who knows your debit card number and PIN can immediately take money from your linked account.
5. Too many credit cards.
I have a lot of credit cards, but I only carry one or two physical cards when I leave home. If you have a pile of credit cards in a wallet, and they all get lost or stolen at the same time, it will be a much bigger hassle than dealing with just one or two missing credit cards.
As I mentioned with debit cards, the safest way to use a credit card is also to use a mobile wallet when possible. I have a few cards in my mobile wallet but also carry at least one physical credit card with me as a backup.
If someone steals your credit card, you get protection thanks to a federal law called the Fair Credit Billing Act (FCBA). It says that if a thief takes your credit card or even just the card number and goes on a shopping spree, you're responsible for no more than $50. But many credit card issuers offer protection that eliminates your liability for fraudulent charges.
The protection improves if you become aware that your credit card is lost or stolen and report it before unauthorized charges are made. In that case, you're not responsible for any amount. Theses terrific protections you get with credit cards make them much safer than using debit cards, whether you’re making purchases locally or online.
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6. Important or original documents.
Never stuff your wallet with any documents containing important information or personally identifying information, including:
Most insurance cards can be added to a mobile wallet, making them more safe. But if you need to carry an important document, consider making a copy and blacking out or even cutting out any sensitive information on the copy.
7. Passwords.
If you have a sticky note or paper in your wallet that’s your password or PIN cheat sheet, try using a password manager on your phone instead. If a thief gets passwords to your financial accounts, they would have a much greater chance of figuring out how to steal from you.
8. Spare keys.
Keeping an extra key in your wallet leaves you more vulnerable than you might think. A thief can easily find your address if they also have other personal documents, like your driver’s license.
9. Gift cards.
A gift card might not be as dangerous as the other items that I recommend removing from your wallet. However, if you have several or they have a high value, it’s like carrying too much cash. Similar to cash, gift cards are non-refundable and not covered by insurance.
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I hope this list will help you pare down the types and amounts of important items you carry in a wallet or billfold. Again if you're just going across town or you're taking a long distance trip, you’ll be glad there’s less to worry about if you ever lose that wallet or become the target of a thief.
That's all for now. I'll talk to you soon. Until then, here's to living a richer life!
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