As a Community Banker, it saddens me to hear that our customers are increasingly impacted by fraud and swindles. As our reliance on technology increases, so does our need to better protect ourselves and our identity from the malicious actions of fraudsters and scammers. Scams are on the rise and scammers are getting trickier. When detecting fact from fake may feel harder, there are things we can do to safeguard ourselves and our personal information from these bad actors.
Recognize the Common Scams
By now, many of us have received a text from the “Michigan DMV” stating we owe toll road dues. These are absolutely fake. Some of the most common scams are phishing emails and texts that pretend to be from a bank or government agency, “spoofed” phone calls from fake bank numbers, and romance and investment scams. If you receive one of these communications, keep an eye out for red flags: urgent language, requests for personal information, or suspicious links. If ever you doubt if a call or text is legit, hang up the phone and look up the known phone number for the institution in question, and give them a call to verify, and use your banking app or visit your financial institution’s website, rather than click links in suspicious emails.
Keep Your Private Information Private
Yes, it may be difficult to remember every password for every log in that you have, but using strong, unique passwords for each account (particularly financial accounts) is a beneficial layer of protection. And take care not to share those PINs or passwords with anyone else. Many platforms offer two-factor authentication, which allows you to add your phone number or email address as an added layer of protection to verify your authenticity when you’re logging in to your account. Enable this service where you can!
Our phones make it easy to access information on-the-go from anywhere, but use caution when accessing sensitive information, and only access when you are connected to secure Wi-Fi. Don’t simply toss your bank statements and credit card bills in the trash – be sure to shred statements, and any documents containing sensitive information, before disposing of them. Last, if you are informed that your information has been breached and that any of your passwords may have been compromised, take the time to change them as soon as possible. This can prevent your accounts or profiles from being taken over.
Be Your Own Watch Dog
Make it a habit to monitor your financial statements on a regular basis, keeping an eye out for anything that looks out of the ordinary, like charges you didn’t make. If your bank, credit union, or credit card companies offer account alerts, take the time to set up text or email alerts to notify you of activity that looks suspicious. Set a reminder to yourself to review your credit report on an annual basis. You can do it for free when you visit AnnualCreditReport.com. Being vigilant allows you to catch fraudulent activity early.
What To Do If You Suspect Fraud
If you suspect fraudulent activity, it’s important to act quickly. As a first step, contact your financial institution or credit card issuer. Alerting the proper company quickly can minimize the amount of damage fraudsters can do with your accounts.
Contact one of the three credit bureaus (Experian, TransUnion, or Equifax), to place a fraud alert or credit freeze. A credit freeze is a good way to prevent new accounts from being opened in your name. Freezing and unfreezing your credit is free and won’t affect your credit score.
Be sure to report any scams to your local authorities and the Federal Trade Commission (FTC). The FTC sues scammers, and when you let them know about your experience, the FTC can use the information to build a case against scammers. Your local police officers would also be able to utilize the information to move their own investigations forward.
It may feel daunting to keep yourself and your identity safer, but your precaution does provide additional safety for you. Don’t hesitate to reach out to your financial institution to take advantage of the tools that are available to you. Most offer fraud detection tools or services that can easily be implemented to protect your accounts there. Aren’t sure what services are available to you? Call your local branch! We’re excited to tell you how we can help you minimize your fraud risk, and we’re here to keep you safer.
What Your Bank Will Never Do (But a Scammer Might)
1. Ask for Your Full Password, PIN, or One-Time Code by Phone, Email, or Text. Your bank will never ask for sensitive login information or verification codes. If someone does, it’s a scam.
2. Pressure You to Act Immediately or Threaten Account Closure. Scammers often create urgency to scare you into acting fast. A real bank will never demand immediate action or threaten you into making a decision on the spot.
3. Tell You to Transfer Money to “Protect It” or Move It to a “Safe Account.” A legitimate bank will never ask you to move money to another account to keep it safe. In fact, that’s a classic sign of a scam.