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COVID-19 and managing your money




Freels

Freels

Nothing brings out the criminals like a good catastrophe and the current COVID-19 pandemic is no different.  Scammers will use current events with no shame to try to steal your money.  Also, very honest, smart people are changing certain behaviors which may increase their financial risk.  Let’s address a few issues…

 

First, there is no need to withdraw excessive cash from the bank.  Your money is far safer in the bank than in your purse/wallet or hidden somewhere in your house.  Think about it.  If you have a fire or theft or if you lose that purse, that money is gone and your homeowner’s insurance limits how much cash on hand they will cover.  In the bank, it is fully covered by FDIC insurance up to $250,000 (and possible more depending on how your accounts are structured) and since the implementation of the FDIC in 1933, no depositor has lost a single penny due to bank failure.  Also, your debit card will still work, your online bill pay is up and running, you can still use checks, the ATM’s are available and, better yet, banks are open.  You have ready access to your cash when needed.  Don’t take the risk of trying to hide cash in your house.

 

Second, rely only on official sources for information.  There are all kinds of e mails, text messages and electronic scams running claiming to be official information about COVID-19. They are trying to get you to click on a link that will install malicious software so that they can steal your personal information.  Don’t click on any link e mailed or texted to you.  The best source of information about COVID-19 can be found at CDC.gov.  Go to that website separate from any e mail link if you want the latest official information.

 

Third, although Congress is considering sending checks to many Americans, that hasn’t been done yet.  So, if you get a phone call stating that you need to provide your social security number or pay a fee to get your check, it is a scam.  Hang up.  Even now and as always, no legitimate person or agency will call to ask for your social security number nor will you have to pay a fee to get the stimulus check if it happens.  The best defense is to just hang up.

 

Fourth, be smart and logical.  There are rumors that fly around and people throw logic out the window and respond with panic.  The result is that people in a panic make poor decisions and spend unnecessary money on stockpiles of toilet paper and eggs.  Please think before you act.  What makes the most sense?  What is the source of this information you’re acting on?  Is it an official resource or a rumor?  Now is the time for calm to prevail.  

 

It’s cliché to say these are unprecedented times.  The playbook is being written each new day as we go.  But, that doesn’t mean we can’t be smart.  Don’t let current events be the reason you lost a lot of money either due to scams or poor decisions.  Stay calm.  Stick to trusted resources and stay financially safe.

Frank Freels, Jr. is the senior vice president, security officer of Volunteer State Bank.

 

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