Banks, credit card companies, the government, and a variety of other entities are continually looking for new ways to protect your money and data. But scammers never appear to be far behind.
According to a 2023 Ipsos poll conducted on behalf of Wells Fargo, over one-third (31%) of respondents have been victims of online financial fraud or cybercrime. Furthermore, while nearly 75 percent of Americans believe they have taken the necessary precautions to avoid being scammed, nearly half (48%) believe they will become a victim of financial cybercrime in the future regardless.
While there is no perfect way to avoid becoming a victim of a financial scam, you may dramatically improve your chances by taking a few sensible actions.
Question everything
This is the most critical technique to defend oneself against all types of fraud, not just financial fraud. If something sounds too good to be true, it probably is. When presented with such a bargain, ask plenty of questions, especially why you are offering it to me. What do you (the dealmaker) get out of it? Why is there so much urgency? What happens if I wait a few days to respond? If the person being asked the questions becomes agitated or stops replying, this is a major red flag.
Review all accounts and passwords
Keep track of all your financial accounts and credit cards. Check your statements on a regular basis and ensure that you recognise all of the transactions. And, while it may seem obvious, keep your passwords secure and complex. Also, don't repeat passwords for several accounts.
Never share personal information on social media
Before the pandemic, we'd definitely have said never share personal information online; in fact, we did a few years ago. However, the pandemic has changed much of our lives online, and we can now open bank accounts, investment accounts, and even apply for homes online. In these circumstances, disclose information only when you are certain who will receive it. Also, never post any banking information, credit card information, or personal identity details on social media.
Monitor your credit
It's a common myth that checking your credit score will damage it, but this is not true. Make sure to check your credit reports at least once a year. This will assist you in identifying any unauthorised access to your credit file, halting any applications before they become loans, and taking action if someone successfully accesses credit in your name.
Use two-factor authentication
Even if your password is complex, it can be compromised via phishing attacks, data breaches, and other means. So, when it comes to financial accounts or accounts that include financial information, you may want to go beyond a simple login and password.
Two-factor authentication (2FA) is a security standard that needs two forms of identification before accessing an account. For example, after entering your password, you may be asked to enter a PIN, answer a security question, pass a facial recognition test, or submit a one-time verification code provided via SMS, email, or an authenticator app.
