How to Have Financial Privacy
The last thing you want is someone dipping into your bank account and taking your hard-earned cash, or worse, stealing your identity, damaging your credit history and dragging your good name through the muck. Technology has made it easier for thieves to get a hold of your financial information. Plus, your bank may be disclosing information about you to third parties, resulting in annoying telemarketing calls. If safeguarding your money and keeping your financial information private is important to you, being informed is your best defense.
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Instructions
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Request a copy of the privacy policy at all financial institutions where you are registered. Banks keep records about your spending habits and credit history. They may have information about your income too, if you've ever applied for a major loan, like a mortgage. Some banks share this information with non-affiliated third parties, and opting out is your responsibility.
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Call or send letters to your financial institutions to opt out of sharing your information, according to the opt-out procedures described in each bank's privacy policy. If you can't find instructions in an institution's privacy document, call the bank's customer service department.
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Question third-party companies who ask you for information they don't need. For example, you should protect your Social Security number carefully. You need to release it on tax forms, employment records, property transactions and stock transactions, but businesses shouldn't need it for any other reason. Ask why they're requesting it, and if you're not comfortable with the answer, take your business elsewhere.
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Refrain from sharing financial information over the phone or through email. If you initiate the contact and know who you're speaking with, it's OK to divulge your credit card number or debit card information over the phone only. Never send that same information electronically, and never provide it to someone who calls you first.
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Use your credit cards and debit cards selectively. When shopping online, only enter your credit card number into merchant sites that offer transaction security protection. The Privacy Rights Clearinghouse recommends using your credit card instead of your debit card for online purchases, since credit card companies offer more fraud protection. If an ATM looks questionable to you, don't use it.
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Get a copy of your credit report once annually to check for unauthorized activity in your name. If you notice any inaccuracies, notify the credit reporting agency immediately.
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Tips & Warnings
For extra protection against debit card fraud, only use ATMs operated by your financial institution.
To reduce your risks of theft, carry less money with you when you go shopping. Limit the number of credit and debit cards you carry in public and leave your Social Security number at home.
References
- Federal Deposit Insurance Corporation: Your Rights to Financial Privacy
- Federal Deposit Insurance Corporation: Financial Privacy -- Our Answers to Your Questions
- Privacy Rights Clearinghouse; Fact Sheet 24e -- Is Your Financial Information Safe?; September 2004
- Privacy Rights Clearinghouse; Fact Sheet 17 -- Coping with Identity Theft -- Reducing the Risk of Fraud; Revised June 2011
Resources
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