Unfortunately, fraudsters are out there. They want your money, your identity, or both, and they’re getting more and more sophisticated. There’s an abundance of opportunity for swindlers to take advantage of people because so much of what we do is online. However, there are ways for you to protect yourself from financial fraud, both by taking action and being aware.
Here are 8 ways to protect yourself from personal financial fraud.
Protect your identity
Stealing someone’s identity is often the first step to running up massive charges in their name. As scary as it is, you can go bankrupt if someone opens credit cards using your ID and maxes them out before you’re even aware anything has happened.
Any documents containing your name or other personal information must be disposed of carefully. Shred your mail and dispose of records securely. It may take longer, but these small steps can save you a world of trouble.
Don’t click on unknown links
Whether it was sent to you in an email or via text message, don’t click on it. A common tactic for scammers is to send a normal-looking link that’s harmful. Before you know it, you’re freely giving away information. Instead, take the time to visit a website through the legitimate homepage or call customer service if you suspect the link is a scam.
Check your bills
With so many bills now offered online, it’s easy to forget to review them. Ensure your statements are being checked for accuracy every month. It’s the only way to identify fraudulent charges and have the chance to correct them.
Don’t put your personal information online
Think of it as straightening out scrunched paper; the damage is done and will not disappear. The same goes for putting your personal information online. Fraudsters can use something as simple as your workplace or birthdate to verify your identity and expose you to financial fraud.
Never give up information over email or on the phone
The Covid-19 pandemic made us eminently susceptible to being taken advantage of because things were constantly changing. Extra government programs were in place, vaccination campaigns were underway, and all of this administration meant more text reminders, phone calls, and emails.
Trustworthy institutions typically won’t ask for personal information via these channels. If you get a suspicious phone call or email, hang up and call them directly. That extra step may save you a lot of money and stress. A common tactic these days is the caller claims that a loved one is in trouble and needs help, making it easy to fall victim to one of these scams.
Be cautious when shopping online
Fraudsters are becoming more cunning when it comes to tricking us online. It’s not unusual for a fraudulent website to appear identical to a legitimate one. Triple-check web addresses and question deals that seem too good to be true.
Be aware of spelling mistakes and awkward grammar. They’re often a dead giveaway that it’s a lookalike intended to trick you into handing over your information.
Check your credit report periodically
If you can get free, a credit report that won’t harm your credit score, take advantage of it. It’s an excellent way to know if loans have been opened in your name or to be alerted of any other suspicious activity.
Set spending limits on your credit and debit cards
With most cards, you can set up to alert you of purchases, and you can set the bounds of when that happens. If someone steals your credit card information, they will likely run through several smaller purchases as a sort of test to see if you’re keeping track. Set up spending alerts to stop them before there’s too much damage.
Final thoughts
It’s a big, connected world, but modern technology has made us more vulnerable to financial fraud. However, with some good habits and suitable tools and practices, you can protect yourself and continue to enjoy life’s online conveniences.
If you have any questions, feel free to Join the conversation…