How to protect yourself from financial fraud
Published 02/10/2022 | Last updated on February 23, 2022
The financial services sector faces challenges in the development of activities that require information and communication technologies because they are exposed to a series of risks such as cybercrime, which can affect trust in the company's brand and the service.
This is how prevention must address these challenges. We must anticipate and prevent risks related to computer crimes, using tools that facilitate the analysis of information to make decisions.
Phone calls or emails from impostors posing as federal employees are becoming more common every day. Don't fall for scammers posing as government agents offering to help you get your economic impact payment faster or threatening to send the police to your home.
It is more important than ever to understand the different types of fraud and what you can do to avoid becoming a victim. The following is essential information to help protect you against multiple types of fraud.
How do frauds arise in digital banks?
For some years, several countries have had monetary policies that allow financial institutions, such as banks and fintech to open and close savings accounts through the Internet.
This change contributed to the reduction of bureaucracy, eliminating the need to manually review a series of documents necessary to open an account, in addition to the ease of resolving everything without having to go to the bank.
Furthermore, to further optimize the user experience, these institutions began to request more minor and fewer data to open accounts, opening up space for action by malicious people.
So, on the one hand, the digital service has made life easier for customers and expanded the reach of these institutions, but on the other hand, it has given rise to new scams. In other words, now financial institutions will have to face the new fraud problem in digital banks.
Some forms of financial fraud
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Social media scams
Social media connects friends with friends and sometimes with scammers. Beware social media posts offering vouchers, gift certificates, end-of-year promotions, or contests. Many of these posts could seem from known people. While some may be legitimate, others are likely to be scams designed to steal personal information through surveys, inquiries, or link clicks. So, if you weren't expecting an offer and didn't trust the source, avoid the temptation to click.
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Ignore mysterious offers
It's always important to follow the axiom "If it sounds too good to be true, it probably is,", especially during the holiday season. In this scam, thieves may advertise brand-name products at meager prices, sometimes with a deadline, to create a sense of urgency and trigger an impulse purchase. Analyze enough because maybe products could seem false. And to make matters worse, fraud is often a double-edged scam: they sell you a fake product and collect your personal or financial information. So remember: if the offer is too good to be true, avoid it.
What do you do if you suspect fraud?
If you suspect you are being the victim of a scam or fraud:
- Avoid transferring money with a debit card if you feel pressure. Just don't do it.
- Never share personal information like your Social Security number, credit card number, or others.
- Do not click on the links sent to you by email; instead, open a new window and find the official website of the relevant agency.
- Report the fraud.
What can you do to avoid fraud?
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Review all accounts and passwords
Watch out for every bank account you have and also your credit cards. Regularly check your statements and make sure you acknowledge receipt of all transactions made. And, as evident as it may seem, keep your passwords private and complex. It is a good idea to change your passwords frequently, and you should have a different one per account.
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Do not share personal information
Bank information (particularly passwords) is personal and should not be shared with anyone. Suppose it is suspected that someone knows the password or, for some reason, the password has been revealed to someone else. In that case, it is vital to change the password immediately through the ATM network or through internet banking, whichever is more practical.
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Never share personal information on social media
Before the pandemic, we probably never would have talked about sharing personal information online. The pandemic has moved much of our lives online, where we now open bank and investment accounts. Only share the information when you are sure who receives it in these cases. And never give the bank, credit card, or personal information on any social media.
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Take your time
Keep calm when you see offers that put some kind of pressure. Usually, these offers use expressions like "do it now" or "only today" to make you take a quick decision. Be suspicious if you are not given enough time to read a contract or seek legal advice before signing. Also, be careful if you are told that you have to pay the seller quickly, for example, by sending money electronically or by mail.
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Control your account statements
The holidays are busy and chaotic, so it's easy to forget to check bills, debit card transactions, and credit card statements. Thieves expect you to be inattentive to your finances. If you see a fraudulent charge, let us know quickly. Doing so can mean the difference between a Happy New Year and not. Subscribing to Statements through Online Banking makes it easy to keep track of your statements. Electronic statements replace paper statements and have many advantages: they reduce the risk of mail fraud, they give you access to your statements 24 hours a day, and they are available sooner than paper statements. You can now sign up to receive electronic statements for credit cards and accounts.
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Look at the details
Is there an extra "o" in the email you received from Google? Or is the LinkedIn logo slightly distorted? Scammers often use well-known brand names to trick people into getting past email filters and thinking we're working with reputable companies. We may unknowingly fall for a scam. Make sure you're working with a brand, site, or person you know and trust before submitting any financial information.
We must avoid falling into the hands of those who want to trick us or carry out some fraud. In a context where security is one of the elements most valued by users, fraud in digital banking ends up being a great challenge for these institutions. Keep in mind the information in this article to prevent financial fraud.
At El Paisa Multiservices we want to help you with your finances and give you the best advice. You can contact us if you have questions about our services.
By Ingenuity & Solutions
