October 22, 2006

Pocket Protection
Rush to contain damage from lost wallet, purse
by Tim Simmers, San Mateo County Times

That frantic feeling of misplacing your wallet or purse, or wondering if it was stolen, can be horrifying.

No wonder. That billfold houses key financial and personal information, from your ATM card and driver's license, to credit cards, health insurance cards, cash and other forms of ID.

It wouldn't take long for culprits to empty your bank account, run up your credit card bills and use your ID for nefarious reasons.

"My head was spinning, and I was in shock when I realized my wallet was stolen," said Kathy Lavezzo, a Pacific Gas & Electric Co. employee from San Mateo who had her wallet and checkbook stolen recently. "I felt totally violated."

Lavezzo volunteered to teach some business fundamentals to a Junior Achievement class of youngsters at a San Francisco school earlier this year, and her wallet was taken from her purse. Dazed and confused, she made her way to her bank, a small community bank where she was a longtime customer. People there comforted her and began closing her accounts, opening new ones and issuing her new checks.

But in less than two hours of the theft, the culprits had charged $2,500 in merchandise on her Visa ATM card. She didn't have to pay it back, because she reported the loss quickly. But six months later, she still gets calls from her bank about bad checks written in her name from the stolen checkbook, and still refers to the event as "a nightmare."

Indeed, there are some steps to take that could save lots of hassle if your wallet or purse is lost or stolen in the future.

First, make a list of the important things in your wallet. Copy all the credit cards, bank cards and ID, and be sure to get those card numbers. Also, contact your bank and credit card.

"Leave that list with those numbers with someone you can trust, and could call later," said Amanda Walker, senior editor of Consumer Reports, which covered the topic in its July Money Adviser newsletter. "And make sure you get all the numbers you would need to call." Leave a copy at your home, as well as giving it to a trusted friend or relative, she urged.

Walker added that it's important to call the police and get a report filed right away if the wallet or purse appears to have been stolen. The police can put the card numbers on a list, and those numbers automatically pop up in many police systems if a culprit is caught with the card.

"We can do more when the wallet is stolen," said Tom Daughtry, a lieutenant with the San Mateo Police Department. Daughtry noted that victims can file a report online with most police departments if they don't want to come in person. He also recommended doing regular credit checks after a billfold is stolen "to make sure you haven't been a victim of identity theft."

Your liability for unauthorized purchases can't exceed $50 under federal law, and it could also be waived completely, Walker said. If you have the information to report a lost card quickly, your liability likely will be zero.

Your bank can be a terrific first call. Banks, particularly smaller ones, can act on your behalf and move quickly on damage control. They can close existing accounts and open new ones fast, so fraudulent transactions can be stopped.

"We put a hold on everything," said Barbara Evers, director of marketing at Borel Private Bank & Trust Co. in San Mateo, Lavezzo's bank. At Borel, clients get the service of having bank officials watch every credit card-type transaction after the loss of a wallet or purse.

If your wallet is stolen, put an immediate stop on your ATM cards, Evers said. Especially since they can be used to purchase things at department stores and other outlets without the buyer knowing the PIN number. Also, Evers stressed not to put your PIN number in your wallet.

She added that men often keep uncashed checks in their wallets, which could represent another big loss or hassle. With women, the loss of a wallet usually means the loss of a purse as well as a checkbook, she said.

"It's one of the biggest inconveniences in the world, losing a wallet," said Evers, adding that losing cash "is extremely upsetting." 

Evers also recommended not keeping all your credit cards in your wallet at once. If possible, carry just one, she said.

"You really get a sinking feeling when it happens," Lavezzo said. "And there's more than your driver's license and credit cards. There's the AAA card, the library card and it just seems to go on and on."

Lavezzo was taking a trip on a plane the same week her wallet was stolen, and had to scramble to get the proper ID cards and credit cards in place.

Also, if your wallet is stolen or lost, be sure to examine all financial statements you get afterward for unauthorized charges. Finally, contact the credit reporting groups, Equifax (800-525-6285, http://www.equifax.com) , Experian (888-397-3742, http://www.experian.com) and TransUnion (800-680-7289, http://www.transunion.com) , and ask them to put a fraud alert on your report.

The fraud alert also entitles you to a free copy of your credit report from all the bureaus. But keep in mind, they usually only update your account information once a month.