Secure Data Recovery recently published a study that found that 94% of Americans have what are known as zombie accounts — accounts individuals once signed up for but no longer use. And it could be costing them money.
According to the study, platforms with the most zombie accounts include Pandora, Groupon and Shutterfly; platforms with the least zombie accounts include YNAB (You Need a Budget), Skillshare and Nike Training Club. The financial services app with the most zombie accounts is Acorns.
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Unfortunately, many of these accounts can be costing people money, even in their zombie-like state. Here’s how.
Also see five subscription services to cancel this summer.
Paying for Services You Don’t Use
Some services require paid subscriptions. And just because you are no longer using a particular service does not mean your credit card has magically stopped being charged.
“Most people will forget that they are still paying a $5 or even a $10 per month fee for an app they signed up for and are no longer using,” said Paul Ferrara, CIM, senior wealth counselor at Avenue Investment Management. At the end of the year, that could be up to $120 down the drain. And if you have five zombie accounts? That’s $600 you’re lighting on fire.
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Potentially Subject to Market Fluctuations
If you’ve signed up for a financial services account like Acorns, you are agreeing to let the platform take your spare change and invest it. That means, if the market goes down, your investments could lose value.
And while one could argue it’s wise to leave your money in the market long term, it’s unadvisable to forget you have these investments in the first place. This is because your risk tolerance will shift over time and your portfolio may need to be rebalanced.
Goldmine for Fraudsters
Even though zombie accounts are unmonitored, they are still active. And this means that your account details remain stored and susceptible to hackers.
“If a fraudster successfully gains access to the account, they will likely purchase goods or build a profile without the original account holder catching on for quite some time,” said Leslie Tayne, finance and debt expert and founder of Tayne Law Group. Additional damage ensues when fraudsters obtain and then change passwords and/or email addresses outside the account holder’s awareness.
What Can You Do About It?
In order to avoid losing money on accounts that have “gone zombie,” it’s important to take steps to protect yourself and your finances.
Routinely Check Bank Statements
Sara Griffin, financial coach at Sip Into Savings, recommended going through your bank statements on a weekly basis to review all expenditures. Decide whether you are going to continue using certain paid accounts or whether you are going to cancel them.
If you decide to cancel an account, log in that day and do so. If you are on the fence, set a deadline for yourself to determine whether you intend to use it.
Review Emails
“Sometimes we think we cancel a subscription, but we miss a step and end up still paying for it for months,” Griffin said.
This is why it’s important to review your inbox. If you come across emails from an account you used to pay for, make sure you actually canceled it.
Delete Accounts Fully
Tayne advised taking one day a month and reviewing all your apps. If you are no longer using an app, don’t just delete the app off your device; be sure you have deleted your account (and details associated with it).
Utilize Strong, Unique Passwords
Strong, unique passwords can help prevent fraudsters from gaining access to your accounts — and your funds.
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This article originally appeared on GOBankingRates.com: How ‘Zombie Accounts’ Are Costing You Money — and What To Do About It
