When you work hard for your money, the last thing you want is to lose it. However, every year, Americans lose billions of dollars to financial fraud. No matter your background or level of education, everyone is at risk. Scammers are incredibly savvy, with countless strategies and high-tech tools at their disposal.
Fortunately, there are ways you can protect yourself from financial fraud. October is Cybersecurity Month, the ideal opportunity for us to share some of the most important steps you can take:
- Keep an eye on your account statements. For every financial account you have, from savings and checking to credit cards, loans and beyond, it is essential to review your periodic statements. Review every transaction in detail to look for any suspicious activity, even small transactions that can indicate scammers are testing you to see if you notice the activity. If you do see any concerning information on your statement, contact your financial institution right away.
- Check your credit. Just as important is reviewing your credit reports regularly. Your credit reports will show your payment history and what accounts are or have been opened in your name, so you can check to see whether something looks irregular or unfamiliar. Again, if you see anything that looks like an error on your credit report, notify your financial institution and the reporting credit bureau. To access your free annual credit reports, visit annualcreditreport.com.
- Store securely. If you choose to keep paper copies of financial information, keep those documents in a secure location, such as a locked file cabinet. Don’t keep documents longer than you have to: most can be discarded after a year, with the exception of tax records, which should be kept for seven, and documents related to large assets, which should be kept as long as you own the asset.
- Eye communications with skepticism. A huge portion of financial fraud is initiated via an unsolicited communication – a text message, an email or a phone call. Any time you receive an unexpected message that sounds urgent or threatening, assume it is a scam. Reach out to the financial institution or business the message is supposedly from, using contact information you can verify independently. Never click on links or follow any instructions provided in these messages.
- Stay vigilant. As we said, everyone is at risk. It’s important to continually educate yourself on financial fraud, the strategies being used to perpetuate these crimes, and ways you can keep safe.
For more information on how to keep yourself safe, be sure to check our blog regularly – and check out the library of educational content by the Consumer Financial Protection Bureau.