Friday, October 03, 2014

View It As Insurance

We are one of the 76 million households affected by the J.P. Morgan data breach.

According to the bank the stolen information was limited to "names, email addresses, phone numbers and addresses." The thieves did not obtain sensitive data, i.e., "account numbers, passwords, Social Security numbers or dates of birth."

The biggest risk
is typically “phishing”—which involves identity-theft criminals contacting customers pretending they are the bank and asking them for more personal information.
We do not have J.P. Morgan/Chase checking or savings accounts but do have several JPM credit cards to which we make payments.

Though they want you to give them all your business, it's a good idea to keep your asset (checking, savings, CD) banks separate from your liability (credit cards, loans) banks. Whenever possible, make the payment instructions from the asset account and don't authorize the liability bank to draw on your cash.

Above all, zealously guard the passwords on your asset bank(s) and never respond to e-mails. To conduct business go to the asset-bank website directly on a secure network or even visit the bank in person(!).

Having more accounts will probably cost more in fees, but view the expense as insurance against inconvenience or even severe financial loss.

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