Preventing Financial Fraud



What is Financial Fraud:


Financial fraud is when someone takes money or other assets from you through deception or criminal activity.


Debit/Credit Card Fraud:


Card fraud is when a thief or scammer gets access to your credit or debit card number. This can happen when the card number or the physical card itself is stolen.


How to Avoid Card Fraud:


You should check your bank account every week. If there is any unusual activity on your bank account or card, you can easily find when the problem started occurring. Keep your card in a safe to make sure one steals your card number. Also, chip cards are more secure than the card with only strips. Be cautious about using the ATMs anywhere other than your bank. Hackers can sometimes get into the third party ATMs with devices called skimmers that can steal your information.


Bank Account Fraud:


Bank account fraud is another type of fraud and can happen easily. Someone can just steal a check out of your mailbox or they can get a hold of your account information through an e-mail scam. In some cases, they can use malware to get access to your personal information.


How to Avoid Bank Account Fraud:


You can use a strong and unique password for your online banking account and always enable two-factor authentication. Be careful when using public Wi-Fi anywhere you go. And, don't give your bank info over the phone or email. Lastly, never give out your account pin. Make sure to report lost or stolen cards immediately and don't use public computers for online banking.


Ponzi Scheme:


This scheme promises consumers or investors large profits based primarily on recruiting you and others to join their program, not based on profits from any real investment on real sale of goods to the public. Some schemes may actually sell a product, but they often simply use the product as a front. The Ponzi scheme is also similar to the pyramid scheme where participating payers recruit other investors to pay returns to the earlier participants. It is illegal in the United States and elsewhere.

Identity Fraud:


Identity fraud is when someone impersonates you and uses your personally-identifying information to steal money. Identity fraud is most common on the internet.


How to Avoid Identity Fraud:


You can secure your social security number (SSN) and only carry your SSN when it is necessary. Also, don't share your personal information like SSN or bank account when someone asks for it. Make sure to store your information in a safe place, shred all the receipts, credit offers, account statements, and expired cards. This can prevent dumpster divers from getting your information. Lastly, review your credit report.


Written by Anna Li



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