There’s no shortage of scammers looking to steal your personal and financial information, including passwords, bank account or credit card information or your Social Security number.
Sometimes, it might be difficult to figure out whether a situation is a scam to begin with — some scammers are very good at creating a seemingly innocent connection or believable story for the people they target.
It’s important to be on guard for your own safety and security. Keep reading for some ways to help protect yourself and your information against common financial scams.
Learn to recognize scams
The first step to protecting yourself from common financial scams is knowing what they look like. Well-known scams include:
- Phishing: A scammer impersonates someone you might trust, such as a lender or government official, to get your information, often using official-looking email addresses and text messages.
- Identity theft: Someone steals your identity by using your Social Security number, credit card or bank information with the intention to commit fraud.
- Mail fraud: You’re targeted through official-looking mail that asks you to share personal information or send money to someone. The mail could look like it’s from the government or a charity.
- Imposter scam: You’re contacted on the phone, over text or through email by someone pretending to be a person you know or trust. Or they may pose as a stranger hoping to start a friendship or romantic relationship with you.
Be careful what you share
Some scammers may call pretending to be your bank, credit card company or personal loan or mortgage lender. They might have some information about you already, such as your employer or your home address, which makes you trust that they are who they say they are.
It’s important not to provide any additional sensitive personal information before you verify their identity. For example, if someone contacts you claiming to be a representative from your bank, call your bank right away at the number listed on your bank’s website to verify their identity.
Additionally, be careful what you post on social media, such as your home address, phone number or other identifying personal information. Don’t share your personal details on the phone or over email with people you don’t know.
Secure your accounts
One of the best ways to protect your email, bank accounts, credit card and other financial or personal information is to set up multi-factor authentication, which adds an extra level of security to your accounts. Multi-factor authentication works by asking you for a password and then verifying a code texted to your phone when you log in.
Never share your passwords with anyone, and don’t save them on your computer or phone or write them down where a scammer could easily find them.
Check your credit report regularly
Much like checking your bank account and credit card activity, it’s also important to keep an eye on your credit report. Your credit report is a record of many aspects of your financial activity, including your bill payment history, how much of your available credit you’ve used and whether credit card or other accounts in your name have been opened or closed.
Checking your credit report could help you notice mistakes like being overcharged or fraudulent activity like identity theft. You can check your credit report for free once per week through the three major credit agencies (Equifax, Experian and TransUnion) at annualcreditreport.com.
What to do if you’re a victim of a scam
If you think you’re a victim of a financial scam, you’ll want to take some or all of the following steps to protect yourself:2
- Stop communicating with the scammer right away.
- Change your passwords and set up multi-factor authentication.
- Contact your impacted bank or lender immediately. Freeze or close any accounts that have been affected by the scam and cancel any credit or debit cards linked to the account. Dispute any charges you didn’t authorize.
- Contact the major credit bureaus (Equifax, Experian and TransUnion) to freeze your credit or put a fraud alert on your file.
- Document exactly what happened, including any receipts — screenshots, emails, phone calls, text messages or other communication.
- Contact the authorities, including your local police department, if necessary. You could also contact the Federal Trade Commission (FTC) to report fraud.
- Consider purchasing identity theft monitoring and protection services.
Take steps to protect yourself now
Unfortunately, we live in a world where financial scams are a regular occurrence. Once you’re more familiar with common types of scams, you may see them happen more often. Be on the lookout, guard your personal information and check your credit report for signs of fraud. Take additional steps to protect yourself if you think you have been targeted by a scammer.
Notice: Information provided in this article is for informational purposes only and does not necessarily reflect the views of swaggermagazine.com or its employees. Please be sure to consult your financial advisor about your financial circumstances and options. This site may receive compensation from advertisers for links to third-party websites.
