In the unfortunate event of losing your wallet, it’s important to take steps to minimize the potential loss of your money and credit. So what should you do? Let’s hear from the experts.
Most people carry not only cash in their wallets but also multiple credit cards, debit cards, and various identification documents like driver’s licenses. Losing your wallet not only poses the risk of credit card and debit card fraud but also the risk of identity theft.
Intern Genna Contino from CNBC’s personal finance department shared a series of recommendations from experts on what to do immediately after losing your wallet, based on her own experience of a wallet incident.
According to Ivory Johnson, a registered financial planner and founder of Delancey Wealth Management in Washington D.C., freezing your credit can prevent someone from opening credit lines in your name.
“Everyone should freeze their credit,” said Johnson of CNBC’s Financial Advisory Committee, “It’s something everyone should do, and you can unfreeze it with just a click of a button.”
Experts suggest that freezing your credit can mitigate the risk of thieves using personal identification from your wallet for identity theft. Especially if you carry your social security card, the situation becomes even more serious, so it’s not recommended to carry it with you.
To freeze your credit, you need to contact the three major credit reporting agencies: Equifax, TransUnion, and Experian. Each agency’s website provides guidance on how to do this, simply create a free account and click a button to securely freeze it.
The next step involves recalling and listing all the contents of your wallet.
A challenging part is replacing items listed on the wallet inventory. You’ll need to call each card issuer to report them lost or stolen to make sure you won’t be held responsible for any fraudulent charges if someone finds your wallet and starts spending recklessly.
You’ll also need to reapply for replacements of IDs like driver’s licenses. The process of applying for a replacement driver’s license may vary among U.S. states, Canadian provinces, and other countries, so you’ll need to check your local government department’s website.
During the application period, having alternate identification documents can be helpful, such as a passport or ID card if available.
Contino mentioned that mobile banking apps from U.S. Bank and Capital One allowed her to easily cancel credit cards and order replacements, but the crucial question during this waiting period is what to use for transactions.
She highlighted that her Apple Wallet had a virtual Apple credit card, rarely used before, but proved handy for subway rides and dinner expenses while waiting for the new cards to arrive.
In the era of online banking, Lee Baker, owner and president of Apex Financial in Atlanta, mentioned that visiting a bank to withdraw cash might seem “dated” but it’s still an option.
“As long as you have some form of ID because they’ll typically ask for ID, you should be able to go to the bank and say, ‘Hey, I just need X amount of dollars,'” said Baker, also a member of CNBC’s Financial Advisory Committee.
Here are some other key points suggested by Johnson and Baker to safeguard your identity and funds:
Keep cash and a couple of credit cards stored in a safe place at home as backups.
Rely more on credit cards than debit cards for most purchases.
Depending on the circumstances of your stolen or lost wallet, report to the police, especially if the loss affects scheduled payments, and you need documents for landlords or utility companies. Contacting the police can also prevent someone from using your driver’s license to impersonate you.
Give copies of identification documents and cards to a trusted person for safekeeping as a backup in case the originals are lost.
If you need to apply for replacement cards, use the new card information to update any accounts or subscription services with automatic payments already set up.
Change passwords and add multi-step authentication for credit cards and bank accounts.