Take Charge Against 7 Types of Financial Fraud
Financial fraud is an ever-present concern. At BHFCU, we're here to help you protect your hard-earned money. Let's delve into some of the most common types of fraud – because knowledge is power!
#1 - Phishing Scams
What it is:
Phishing scams involve fraudsters posing as legitimate entities, such as your credit union or government agencies. They trick you into revealing sensitive information like passwords or credit card numbers, often through email, text messages, or fake websites.
What to do:
Be cautious and know what to look for! Here are a few of our favorites. Never trust a link, especially an odd-looking one – always hover for a double-check. Keep an eye out for grammar errors and typos. And ask yourself questions about the topic. Dive into more detail on these suggestions in our 4 Ways to Identify Text Fraud blog!
#2 - Identity Theft
What it is:
Identity Theft occurs when someone steals your personal information, such as your Social Security number or driver's license, to commit fraud or other crimes.
What to do:
To combat it, we suggest you regularly monitor your credit report for any suspicious activity. BHFCU members can check their credit report here for free! You may also consider placing alerts on your accounts or freezing your credit for added protection. We dive into many of these suggestions in our 6 Practices to Beat Identity Theft blog. Check it out!
#3 - Card Skimming
What it is:
Card skimming involves using a small device to capture card information, most commonly when using an ATM or paying at a gas pump.
What to do:
Where possible, use contactless payments to minimize the risk. Otherwise, be sure to inspect card readers before inserting your card. Look for things like the card reader is loose, off-center, or the security label (colored tape) has been tampered with.
#4 - Account Takeover
What is it:
In an account takeover, fraudsters gain unauthorized access to your online banking accounts by stealing your login credentials. This could happen due to weak passwords or by unknowingly giving your information to a bad actor.
What to do:
Protect yourself by using strong passwords for each account and enabling multi-factor authentication. Strong passwords consist of at least 12 characters, both upper- and lower-case letters, use of numbers, and special characters. Avoid using information like birth dates or anniversaries easily found online. And remember to review your account activity regularly to catch any irregularities early! Check out our 4 Free Resources to Stay Safe in an Online World blog to dive into more details on passwords and account alerts.
#5 - Investment Scams
What is it:
These scams lure individuals into fraudulent investments promising high returns with little risk. Instead, the fraudster takes your money with no results to be seen.
What to do:
Be wary of unsolicited investment opportunities and always take steps to verify the firm’s identity. If it’s too good to be true, it probably isn’t.
#6 - Wire Transfer Fraud
What is it:
Wire transfer fraud involves tricking individuals into wiring money to fraudulent accounts. Fraudsters may call you claiming to be a family member needing money for bail or medical expenses or could be posing as your new long-distance girlfriend wanting money for their flight to meet.
What to do:
Think twice before sending money to unfamiliar recipients, especially if you receive unexpected requests or urgent demands for payment. Always verify the authenticity of any requests through a method of communication you can control.
#7 - Ransomware Attacks
What is it:
Ransomware is a type of malware that encrypts your computer files and demands payment for their release. This happens when you click on a malicious link or pop-up.
What to do:
Protect yourself by regularly backing up your data to an external hard drive or cloud storage service so you’ll never lose it. Additionally, ensure your computer's antivirus and security software are current to prevent malware infections.
At BHFCU, we take your financial security seriously. By staying informed about the common types of fraud and implementing proactive measures to protect yourself, you can reduce the risk of falling victim. Together, we can work to keep your finances safe and secure.
