As technology continues to advance, financial scams are evolving and spreading across multiple platforms including social media, the telephone, and via social engineering techniques. The majority of criminal tactics utilize a combination of urgency, fear, or emotional manipulation to take control of an individual’s financial resources. To protect yourself from these types of scams you must be aware of common scam tactics, verify all communications related to your financial resources, and engage in cautious online behaviors. Understanding common threats will allow you to begin preventing them.
Identify And Understand Common Scam Tactics
Urgency is a tactic that many scammers use to trick individuals into taking action quickly and without fully thinking it through. There are many ways that this can occur such as receiving a message stating your account has been suspended, you have won a prize, or there is a pending lawsuit involving you.
Red flags include when someone asks you to make an immediate payment, send money using an unsecure link, or ask you to enter sensitive personal identifiable information (PII).
Identifying potential red flags allows individuals to avoid making impulsive decisions.
Verify Any Communication Regarding Your Financial Resources
The first step in verifying the legitimacy of any communication regarding your financial resources is to independently verify that the communication is legitimate before you take any actions. This means contacting the organization providing the request for assistance directly by going to their official website, calling them at their known phone number, etc.
You cannot simply rely on a link sent to you via an unsolicited message or email as they may lead you to a phishing site.
Verifying that a communication is legitimate will help protect you from losing your financial resources.
Engage In Safe Online Behaviors
Engaging in safe online behaviors includes creating strong unique passwords for all of your financial accounts, utilizing two factor authentication (2FA), keeping devices current with the latest security patches, and being mindful of your surroundings when accessing public Wi-Fi networks. Simple practices like these can greatly reduce your risk of falling victim to a scam.
Safe online practices include:
Creating unique passwords for each one of your financial accounts
Using 2 Factor Authentication to add an additional layer of protection to your accounts
Accessing your financial accounts over secure Wi-Fi networks
Practicing good digital hygiene greatly decreases your likelihood of becoming a victim of a financial scam.
Actively Review Your Financial Accounts For Suspicious Activity
Actively reviewing your financial accounts regularly will allow you to identify and report any suspicious activity to the bank or credit card company in a timely manner which helps minimize the amount of financial loss that can occur due to fraudulent activities. Real time transaction alerts also provide you with a way to keep track of your account transactions and identify if anything appears suspicious.
Regularly reviewing your accounts provides you with an opportunity to act quickly in the event of identifying suspicious activity and prevents further unauthorized activity from occurring.
Conclusion
To prevent yourself from becoming a victim of a financial scam, it is essential that you are aware of common scams, verify all communications related to your financial resources, maintain good digital security habits, and actively monitor your financial accounts. Although new methods and tactics of scams are constantly emerging, maintaining good habits and staying vigilant will continue to protect you from falling victim to a financial scam. Staying ahead of scammers through proactive vigilance is much better than waiting until after a financial loss occurs to correct your behaviors.
