7 Tips to Protect Your Identity and Cards While on Vacation

7 Tips to Protect Your Identity and Cards While on Vacation

The time for people to escape out cool climate for warmer regions is now upon us.  Wherever you go, chances are that their standards for security regarding cards and accounts may not be great as those here at home.  The following are 7 tips that can help you protect your money while travelling abroad.

1. Use credit, not debit.  Credit cards usually have zero liability policies which can protect you if they are copied or stolen.  Debit cards give direct access to your account, which you want to avoid in areas where identity theft is likely.
2. Change PINs before your trip.  As you leave on your trip stop by the credit union and change your PINs on your debit and credit cards.  You can change them back upon returning, which blocks use of any possible stolen/copied cards after the PIN change date.  You can change your PIN in branch or at your credit union’s ATM.

New type of debit card skimming

Updated from September 2012.

Over 86% of Canadian adults have at least 1 debit card and about 74% have at least 1 credit card. Despite the convenience and popularity of these cards, there is a risk of fraud. It is important to protect your cards, just as you would cash or cheques. Some of the risks associated with debit/credit card fraud are the same as carrying around your account numbers, so protect your card information in your wallet, online and over the phone.

There is, however, another threat to card users that is unique - it's called "skimming." Skimming occurs when thieves set up a device that captures the magnetic stripe and keypad information from point of sales terminals.   It is important to note that debit card fraud has been decreasing in Canada because of the conversion away from magnetic striped to chip cards, but skimming with magnetic stripe cards still occurs.  

Crooks are now trying to get around the CHIP protection by somehow replacing a store/restaurant/gas station’s debit keypad with their own version.  The criminal’s keypad makes you push your debit card in over half of the length of the card so that a scanner can copy the magnetic strip.  The keypad then records your PIN as you enter it.  To combat this keypad switch many retailers are putting locks or other types of protection on the keypads themselves.  

Fraud Prevention Month

March is Fraud Prevention month.

I have written several articles for this blog about fraud over the past few years.  My goal with each article is to help people recognize fraud and to help them warn others about it as well. 

Fraud covers a lot of categories; from identity theft to lying about damage to a home that is for sale, from stealing a credit card to billing someone for work that was never done.

Two of the most famous types of fraud are the Nigerian Prince Letter Scam and the International Lottery Scam.

The Nigerian Prince Letter Scam is quite old and is so-named because the letters originally said they were from a Nigerian Prince who is a prisoner in his country after a violent government turn over.  The Prince has money in another country but cannot access it.  If you would be willing to send money to a contact that will bribe the guards keeping the Prince under house arrest, he could sneak out of the country and then reward you with millions of dollars for the help.  The reality is if you send money they will keep asking for more as long as you are willing to send it.

Banking Changes Over 20 Years

The ways that people access and use their money has changed a lot over the past twenty years. 

Twenty years ago the standard way to do financial transactions involved: going into your local branch during banking hours, waiting in a line, doing your deposits, transfers, bill payments, withdrawing your cash, and leaving to do your other business.  Bills were often paid by mailing a cheque, which usually took a few weeks to come out of your account, and if you ever wanted to pay for something without a cheque you had to go back to your branch again to withdraw cash during banking hours.

Today consumers have a variety of ways to do their financial transactions whenever and wherever they want, faster and more accessible than 20 years ago.  Between debit cards, online banking, mobile banking (using cell phones), e-mailing money, and ATMs.

In addition to the convenience and speed of these electronic services, the decrease in cheque usage has resulted in retailers receiving far fewer NSF cheques which saves stores both time and money.  Instead of waiting for cheques to be deposited, and hopefully not bounced, debit machines allow an instant transfer of cash from the purchaser to the retailer.

Safe Online Shopping

I posted the following advice over a year ago, but with so many more people shopping online this year I figured it would be worth re-posting.


Online purchases have grown dramatically over the past decade.  Whether you are looking for auto parts, books or even clothing, you can buy them online.  While many people want to see and touch the items they are buying, more and more feel safe about purchasing their goods over the internet.

 There are security risks, but if you follow the tips below you can have more confidence in your online shopping experience.

1. Make sure your information is being entered on a secure site. 
2. Look for the latest credit card password procedures
3. Know who you are buying from. Use stores you are familiar with or people you know have dealt with.
4. Beware of refurbished items, often a detail buried in small print.
5. Check the store’s return policies before you buy.
6. Use a separate credit card for online shopping, preferably one with a low limit in case the number gets stolen.
7. If the deal sounds too good to be true, it probably is.
8. Online deals can seem great, but what do you do if something goes wrong with the product?  Check out local retailers too as they can often provide faster service than the online merchants.

Christmas is coming, so if you are looking for a specialty item you just can't get nearby, feel free to do some online shopping, but keep safe.  Jerry

Finances in Your 50s

On past blog posts I wrote about how your 20s and 30s are mostly about debt - gaining debt and trying to control debt.  In your 40s you are transitioning away from gaining debt to paying down debt and hopefully starting to build up assets that will support you in retirement.

In your 50s you should be completing the transition away from debt and focusing on preparing for retirement.   You should be making some extra payments on your mortgage, paying off credit cards completely whenever they are used, and have all vehicle loans at a minimum. 

As the debt decreases, the ability to add more to your retirement fund grows.  Throughout your 50s you will most likely be at the height of your earning potential, which will also allow you to add more of your income to your investment portfolio.  Usually, if you are in a relationship, both people are working, which provides a greater opportunity to increase your retirement fund holdings.

Debit and Credit Card Skimming

Protect Your Cash by Protecting Your PIN

Over 84% of Canadian adults have at least 1 debit card and at 74% have at least 1 credit card.  Despite the convenience and popularity of these cards, there is a risk of fraud. It is important to protect your cards, just as you would cash or cheques. Some of the risks associated with debit/credit card fraud are the same as carrying around your account numbers, so protect your card information in your wallet, online and over the phone.

However, there is another threat to card users that is unique - it's called "skimming." Skimming occurs when thieves set up a device that captures the magnetic stripe and keypad information from ATM machines, gas pumps, restaurants, and retail stores. By doing the following, your information will be protected and you will reduce the risk of having your information stolen.

Banking Has Changed - A Lot!

While I was growing up in the 1970/80’s, I remember my mom having to run to town (we lived on a farm) very quickly in order to pay a bill at the bank before it closed at 4:00. She did that run maybe 2 or 3 times per month.  She also withdrew some cash for small purchases, but most of our larger purchases, like groceries, were paid for by cheque.  That was the norm for a few decades for families all across Canada.

In the early 1980’s bank/debit cards and ATMs were introduced, allowing Canadians to do withdrawals from their chequing account.  This added a major convenience as consumers no longer had to worry about getting to the bank when it was open for cash withdrawals.  With the addition of deposit services through ATMs, Canadian banking habits started to change, and those habits were no longer centered on banking hours.