Americans collectively lose billions every year to financial fraud, and the problem is only getting worse. Scam artists have become so sophisticated in their methods that no one is immune. That means we must all be vigilant and do everything we can to protect our personal information, our finances and our futures.
Even as persistent as criminals are to succeed in their efforts, there are steps we can take to prevent fraud. Here are our top strategies.
Whether you receive paper statements or electronic statements, be sure to review your statements every month. Reconcile the transactions in the statement against your records and watch for any suspicious transactions. Even small transactions valued at as little as one dollar can signal your account has been breached. If you notice anything suspicious, contact your financial institution.
Even if you do not plan on opening a new credit account or loan in the near future, monitoring your credit has never been more important. You are entitled to receive your credit report from all three major credit-reporting bureaus (Equifax, TransUnion and Experian) once every year. Reviewing your credit reports gives you the opportunity to check for errors and address anything suspicious. Access your free annual credit reports at annualcreditreport.com.
If someone contacts you claiming to be from APCU, an organization you do business with, or even a government agency, be cautious – especially if the sender or caller uses urgent-sounding language or scare tactics. If the communication is written, watch for grammatical and spelling errors or unprofessional language, as these are common in scam messages. Never follow the instructions they provide, and that includes giving them your personal information or agreeing to transfer funds for any reason.
When you need to contact your financial institution, whether to report a suspicious message appearing to be from the credit union or to simply get help with a question, always use the contact information you can independently verify, such as the web address or phone number shown on your account statement. Never click the link provided in a suspicious or unexpected message.
It may seem “old school,” but postal fraud is still a big problem. For this reason, consider switching to paperless statements when possible. Financial institutions provide access to electronic statements via digital banking, which is password-protected, making this a safer option than receiving yours by mail. The paper documents that come in the mail can also put you at risk if you don’t dispose of them properly. Be sure to shred any documents containing your personal information, including account numbers.
Your risk of falling victim to fraud rises as you age – and so does the average financial loss associated with fraud. If you or someone you love is of retirement age, be sure to remain especially vigilant.
Lastly, keeping yourself informed is a great way to help ensure you remain aware of the latest financial scams and keep yourself safe. Check our blog routinely for informative posts on financial wellness and keeping your personal information safe. The Consumer Financial Protection Bureau also has a library of educational content to help you learn more.