Are You at Risk for Financial Fraud? Here’s How to Protect Yourself.

Financial fraud is on the rise—and it’s impacting Americans of all ages. This fact hit home for millions of people after hackers breached the Social Security database and accessed 2.9 billion records, including Social Security numbers.

Unfortunately, talented individuals with bad intentions are continuously looking for new opportunities to make off with your personal data. Even worse, they’re taking advantage of sophisticated technology tools that make it harder to identify fraud when it happens and searching for easy hacking targets.

Common Technology Scams

Consumers lost a record-high $10 billion to fraud in 2023. While scammers’ most frequently used weapon was email, they also used text, phone calls, and fraudulent websites to deploy their bad acts.

How did they convince individuals to give up their information? Here are just a few common scams:

Hackers request payment to claim fictitious prizes, lottery earnings, sweepstakes winnings, or unsolicited gifts.
Goods or services purchased through a website are never delivered or misrepresented.
A sender pretends to be a familiar contact and asks the recipient to enter or confirm personal information.
Someone sends a larger-than-expected check and then requests money back from the payee.

What are some practical tips to avoid becoming a victim of fraud?

Know who you’re dealing with.

With every transaction you make, be sure to verify the seller, charity, company, or organization is credible. Do a quick internet search or call the phone number on the entity’s website to verify that the entity you’re talking to is who they say they are.

Pay the safest way.

Use credit cards to pay for online purchases because you can dispute the charges if the goods do not arrive or the services are misrepresented. Review your credit card transactions regularly and notify your credit card company or bank as soon as possible if you identify fraudulent activity.

Sign up for alerts and notifications.

Most credit card companies can send you a text or email if suspicious activity occurs on your account. Responding to these messages quickly allows you to shut down fraud attempts before they happen.

Enroll in online account access.

Most banks, investment firms, and other financial institutions offer internet-based access to your account information, which is updated in real time. This means you can review transactions immediately after they happen instead of waiting for a statement to come by mail.

Guard your personal information.

You may receive messages that look like legitimate business messages, but they’re actually from hackers trying to convince you to provide sensitive information to access your accounts. Be especially wary if someone claims they’re from a business where you have an account but need information they should already have on file. And remember: Banks, credit card companies, Social Security offices, and other official organizations won’t ask you to provide account numbers or other sensitive data to confirm your information when they contact you.

Stay safe online.

Don’t send sensitive data, such as credit card information or Social Security numbers, by email or other unsecure methods. Avoid storing passwords in email folders or unencrypted files on your computer and reset your passwords regularly. Consider using a password manager program, such as 1Password, that generates and securely stores your passwords.

Be wary of unsolicited messages.

If you receive an email or text that seems odd, even if it comes from a contact you know, take caution and analyze it further. If your friends or family legitimately need financial help, they will most likely call you rather than send you an email or text. If you are unsure, then you can always follow up with them directly through another means of communication.

Take your time.

Scammers may demand you provide information or complete a transaction immediately. This pressure is often one sign of a scam and can lead to poor decisions. Instead, take time to investigate who is requesting the money. Legitimate companies and charities will give you time to research and determine your next steps.

Don’t believe promises of easy money.

Offers of earning money with little or no work, obtaining a loan or credit card even with bad credit, or making money on a risk-free investment are probably scams. The adage, “If it seems too good to be true, it probably is,” rings true. Listen to your gut and pause if something does not seem right.

Freeze your credit.

Prevent hackers from opening new accounts in your name with a credit freeze. You can request a credit freeze through the three major credit reporting agencies: Equifax, Experian, and TransUnion. Have a major purchase coming up? The agencies also allow you to unfreeze your credit through their website for legitimate credit checks.

Check your credit reports regularly.

You can request free copies of your credit report weekly. To obtain these reports, call 877-322-8228 or go to www.annualcreditreport.com.

It’s important for you to know that Blue Trust takes the security of your personal and financial information very seriously. We have rigorous cybersecurity procedures to protect your data and transactions.

If you are interested in knowing more about our services, or would like to connect with an advisor, email us at blog@bluetrust.com or call 800-841-0362.