President Donald Trump is taking big steps to reform how the federal government operates. Some of these changes have been controversial.
For example, the Trump administration has tried to curb the power of the Consumer Financial Protection Bureau, which was founded in 2011 to regulate consumer financial products and services.
Court orders have slowed or reversed some of the administration’s moves. But the efforts are likely to continue with the help of a Republican-controlled Congress, as we reported in “3 Protections That Congress Is Trying to Take From You — and 1 It Could Take Soon.”
However this drama ends, it’s important to remember that you don’t have to wait for the government to protect you from financial fraud and avoidable fees. Here are some things you should do now to protect your money — whether or not Trump cleans house.
Lock your Social Security number
If hackers get a hold of your Social Security number, they can create a lot of financial damage by using your identity to execute their nefarious plans.
Locking your Social Security number can stop fraudsters in their tracks. The process is free and can be done through the Social Security Administration or the E-Verify system.
Those who have been victims of identity theft might want to consider locking their Social Security number. However, there are some drawbacks to exercising this option. So, make sure you read “How to ‘Lock’ Your Social Security Number — and Why You Should” before moving forward.
Freeze and monitor all your consumer reports
A credit freeze prevents other entities from accessing your credit report. This action can stop thieves from opening new credit accounts in your name.
You can place a freeze with all three of the major credit-reporting agencies — Equifax, Experian and TransUnion. Requests can be made online, by phone or by mail, and you can lift the freeze before you apply for new credit.
Just as credit reporting companies track your credit history, there are other types of consumer reporting companies that track various aspects of your life, from your car and home insurance claim history to your prescription drug history. In many cases, you can put a security freeze on these consumer reports.
The Consumer Financial Protection Bureau targeted by Trump explains exactly which companies keep reports that you can freeze — and how to freeze them — in the List of Consumer Reporting Companies document on its website.
In addition to freezing reports — or instead of doing so — you can monitor your consumer reports. Federal law entitles you to free copies of your credit reports and various other types of consumer reports.
The document on the CFPB website tells you exactly which reports you can get for free, how often you can get them and how to request them.
Monitor all your accounts and statements
Financial fraud comes in many forms. For that reason, simply protecting your bank and credit card accounts is not good enough if you want comprehensive financial protection.
For example, to catch tax fraud early on, you should also monitor your IRS account for suspicious activity. You can do so by creating an account at the IRS website.
To catch medical fraud early on, monitor statements from your insurer — known as an “explanation of benefits,” or EOBs — so you can spot fraudulent information associated with health care providers you never used or care you never received.
Get an identity protection PIN from the IRS
The IRS also offers the option of establishing a six-digit identity protection PIN that can help prevent a crook from filing a tax return with IRS in your name and trying to collect a refund.
The PIN will help the IRS verify your identity when you file an electronic or a paper tax return. You can get a PIN if you have a Social Security number or individual taxpayer identification number, even if you live abroad.
The IRS has more information about getting a PIN at its website.
Opt out of overdraft protection
In late 2024, the CFPB finalized a rule that placed a cap on overdraft fees. As we reported, the rule allows financial institutions with more than $10 billion in assets to choose among three options:
- Cap overdraft fees at $5.
- Cap overdraft fees at an amount that covers the bank’s costs and losses.
- Disclose the terms of their overdraft loans, if offered, just like other loans.
The rule is slated to go into effect in October, but Republicans in Congress are trying to repeal it.
Once again, you can take your financial future into your hands rather than relying on the government to do it. By opting out of your bank’s overdraft protection, you prevent yourself from being accidentally saddled with these fees.
Doing so might leave you facing the embarrassment of being told your card was declined at a store because your bank won’t front you the difference. But that means your bank can’t hit you with an overdraft fee. Literally and figuratively, that momentary embarrassment is a small price to pay for ensuring you never incur another overdraft fee.
Mind your cyber hygiene
The internet can be a godsend for those who want to stay in touch with friends or loved ones, or who want to explore the world. But a growing number of scammers now use the internet as the primary venue for committing their crimes.
Enabling two-factor authentication or passkeys on accounts that offer them can reduce the odds that someone else will be able to access your accounts. Also, don’t overlook the importance of protecting your email accounts. If someone accesses your email, they may be able to get into many of your other accounts by requesting password resets.
Other tips for maintaining good cyber hygiene include:
- Don’t reuse passwords, and make your passwords strong. Using a password manager makes both steps easy.
- Don’t give out personal information over the phone.
- Don’t click on links you didn’t request, whether sent to you via text or email.
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