No, credit cards and the junk mail with so-called convenience checks inside are not melting the polar ice caps.
So those of you who stuck your credit cards in the freezer to avoid irresponsible spending can relax.
However, convenience checks are a major threat to your personal finances for more than one reason, and they could lead to identity theft or fraud. For would-be crooks, it’s as easy as snatching something right out of your mailbox.
That’s all it takes for them to gain access to your line of credit causing serious headaches and financial hardship. Here’s the story of one person’s troubles…
San Francisco based consumer journalist Bill Snyder of CIO.com recently had an issue with identity theft. Most of his problems were caused by a forger who was printing checks with his MICR info (account number/bank routing number) and accessing his checking account.
Security concerns with check printing software are another problem entirely, but Snyder’s issues didn’t end there. Someone had also been using credit card convenience checks with his name on them. Lucky for Snyder, the suspect got greedy and returned to the scene of the crime.
“The person who attempted to pass them was arrested on the spot. The bank was suspicious because he had opened an account the previous day with one of the checks, and came back the next day and attempted to cash a second check that was significantly larger.”
Authorities told Snyder someone most likely obtained a key to his locked mailbox and stole sensitive documents. In his outgoing mail – there could have been bills with checks containing all the information needed to print fakes. In the mail he received – there were probably credit card offers and those convenience checks which were used to access his credit.
If you’re like me and don’t even have a mailbox with a lock, this sounds pretty scary!
There are a lot of reason NOT to use credit card convenience checks. They have less protection, and usually come with huge fees as well as higher interest rates.
However, someone else using those checks is a much bigger problem. There are some credit card issuers, such as American Express, that require customers to call a toll-free number and “activate” their convenience checks. Still, many others do no such thing. Unlike credit cards, no signature verification is required with convenience checks. You probably won’t know someone is using the checks until you see the charges on your credit card statement.
3 Ways to Prevent Convenience Check Fraud
1. Shred Them Up
A dependable shredder is a valuable tool for any home or office. You should already be shredding any sensitive financial documents before discarding them. Crooks like to dumpster dive as much as they like raiding mailboxes. Tearing up credit card promotions is one thing, but a shredder will make it much harder for criminals to piece documents together like a jigsaw puzzle in order to find the information they want.
2. Don’t Put Your Bills in the Mailbox
More and more people are choosing to pay their bills online or to have payments automatically withdrawn from a checking account. But just about everyone has a couple of things that require sending personal checks in the mail. When that’s the case, the safest thing you can do is bring your outgoing mail to a more secure location.
Those big blue postal service mailboxes are good, but could still be a target of criminals. Dropping your mail off at the post office or having it sent out with the mail where you work might be a better idea. If you do put personal checks in your own mailbox, try to do it shortly before the mail carrier arrives. Don’t let them sit in the mailbox overnight.
3. Stop Convenience Checks from Coming
If you never plan to use credit card convenience checks – which you really shouldn’t – the smartest thing you can do is actually call your credit issuers and ask them to stop sending you these offers. Some credit card companies have lists letting you opt out from receiving those specific promotions. In most cases they will respect your request.
While you’re at it…you can stop getting credit card junk mail in general. Check out THIS WEBSITE and opt out of credit card offers. Or you can also call 1-888-567-8688 to stop getting pre-approved offers in the mail. Think of it as getting yourself on the “Do Not Call List” for credit card junk mail.
Not to mention – you’ll be doing your part to save the planet. The average American receives 41 pounds of junk mail every year! Close to half of that goes to the landfill without ever getting opened.
Your Turn!
Do you have any experience using convenience checks – positive or negative? Tell us if they’ve ever helped you with your finances or if they caused problems.
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Image credit: paalia
+Kasey Steinbrinck writes about personal finance and the economy for Check Advantage. When you order checks from Check Advantage, you’ll find hundreds of unique photography featured on Wildlife Checks and other cool checks! Plus, get free shipping on personal checks.
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{ 2 comments… read them below or add one }
This is a great post. I dont use credit cards at all anymore but i remember getting (and using) these checks years ago. Huge mistake as the interest rate grace period always caught me before i was able to pay off. Completely agree. Shred them!
Sometimes we’ve all got to learn lessons the hard way! Or to throw another cliche at you – if it seems to good to be true…it probably is. Thanks for visiting the blog Edwin!