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8 Fraud Prevention Tips to Protect Your Accounts

fraud prevention tips

The world continues to get more and more digital and the threat of fraud looms large over our financial well-being. With the increasing reliance on online transactions and digital payments, it's more important than ever to safeguard your accounts and personal information from potential fraudsters. This blog post will guide you through the process of identifying potential fraud attempts, explore common types of fraud, and provide you with eight essential fraud prevention tips to keep your financial information secure.

How can I identify potential fraud attempts?

  • Be cautious with your emails: Scammers often use phishing emails to trick you into revealing sensitive information or installing malicious software on your device. Watch out for suspicious sender addresses, misspelled URLs, and unsolicited requests for personal or financial information. One way to avoid clicking on fraudulent links is by simply hovering over the link with your mouse before clicking on it. You can check to see if it matches the company who has sent it or if it has typos and appears to be a scam.

  • Monitor your accounts regularly: Frequent monitoring of your bank and credit card statements allows you to spot any unauthorized or suspicious transactions quickly. If you notice anything out of the ordinary, report it to your financial institution immediately. Usually, most financial institutions have a way you can turn on notifications for transactions over a certain amount. If you are being notified about large transactions, you will know if something is out of the ordinary.

  • Use strong, unique passwords: Create complex and unique passwords for your online accounts. Avoid using easily guessable information like birthdays or common words. Consider using a password manager to keep track of your login credentials securely. You can also change your passwords frequently to avoid someone hacking into your account.

  • Enable two-factor authentication (2FA): Whenever possible, activate 2FA for your accounts. This adds an extra layer of security by requiring a second verification step, such as a code sent to your phone, in addition to your password.

 

What are Common Types of Fraud?

Before talking about fraud prevention tips, it's essential to understand the various types of fraud you might encounter:

  • Phishing: As mentioned earlier, phishing involves tricking individuals into revealing personal information, such as login credentials, credit card numbers, or social security numbers.

  • Identity theft: Fraudsters may steal your personal information to open new accounts, access your existing ones, or commit other crimes in your name.

  • Credit card fraud: Criminals can steal your credit card information and make unauthorized purchases or withdrawals.

  • Online scams: These encompass a wide range of fraudulent activities, such as lottery scams, investment scams, and online auction fraud. Be cautious when dealing with unfamiliar websites or individuals online.

fraud prevention kit

 

8 Fraud Prevention Tips to Protect Your Financial Information

Now that you're aware of common fraud types and how to spot potential fraud attempts, let's dive into eight essential tips to protect your financial information:

  1. Secure your devices: Ensure your computers and smartphones are protected with up-to-date antivirus software and operating systems. Regularly update your software and applications to patch vulnerabilities that scammers could exploit. It can feel like the least of your priorities, but keeping your software up to date is essential.

  2. Limit the information you share: Be cautious about sharing personal information online, especially on social media, over text, or email. Scammers can use this information to tailor phishing attempts to your preferences and habits. Never share any personal information, such as your identification or banking information, to anyone except your credit union or bank.

  3. Beware of unsolicited requests: If someone contacts you unexpectedly, be skeptical. Verify their identity before sharing any information or making financial transactions. If you didn’t ask to be contacted or you didn’t make a transaction or an order with them, it is most likely a scam.

  4. Educate yourself: Stay informed about the latest scams and fraud techniques. Knowledge is your best defense against fraud. If you don’t know what the latest types of fraud are, you won’t be equipped to spot a scam before it happens. You can always check out our financial wellness articles and stay up to date on the latest scams.

  5. Shred important documents: Dispose of sensitive documents, such as bank statements and bills, by shredding them. This prevents fraudsters from obtaining your information from discarded paperwork in the trash. It is one more step you can take to protect your personal information.

  6. Regularly review your credit reports: Check your credit reports from the major credit bureaus for any inaccuracies or suspicious activity. Federal law allows you to obtain a free credit report annually from each bureau. The three major credit bureaus are Equifax, Experian, and TransUnion.

  7. Use secure networks: When accessing your financial accounts online, make sure you're using a secure and trusted network. Avoid public Wi-Fi for sensitive transactions because those networks can collect and store your personal information. It’s best to save those sensitive transactions for when you’re at home or on a secure Wi-Fi network.

  8. Report suspicious activity: If you suspect fraud or have fallen victim to it, report it to your bank, credit card company, and the appropriate authorities. The sooner you act, the better your chances of minimizing any financial damage. If you wait a long time to contact your financial institution, your chances of getting your money back are lower. Your credit union or bank wants to help you recover from any fraud or scam you are experiencing.

 

Protect Your Finances with Leaders Credit Union

Protecting your financial information from fraud is an ongoing process that requires vigilance and proactive measures. By staying informed and following these fraud prevention tips, you can significantly reduce the risk of becoming a victim of financial fraud. While some of these may seem extreme or overprotective, they can help you avoid fraud before it happens instead of suffering after you’ve been scammed. Remember, it's always better to be safe than sorry when it comes to protecting your hard-earned money.

We've created The Ultimate Fraud Prevention Kit that is a comprehensive guide that dives deep into everything you need to know to protect yourself from financial fraud.

 

Report Scams to the FTC

If you were scammed or think you saw a scam, report it to the Federal Trade Commission.