Watch Out – Financial Fraud is Skyrocketing: 12 Tips to Safeguard Your Money

Financial fraud has reached epic levels, with over $5.8 billion lost to scams in 2021 according to the Federal Trade Commission. As criminals get increasingly more sophisticated, we must get savvier about protecting our hard-earned savings and assets.

Implement these 12 tips to fortify your financial defenses right now:

Keep Software Updated

Cybercriminals exploit bugs and weaknesses in outdated programs. Regularly update operating systems, browsers, antivirus software, and apps to protect against the latest threats. Enable automatic updates where possible – here’s a tutorial from Norton. Updates patch security flaws and help keep your devices and accounts secure.

Use strong passwords

Weak passwords make it easy for fraudsters to hack accounts. Create long, random passphrases for every account. Mix upper and lowercase letters with numbers and symbols for complexity. Consider using a password manager like LastPass or 1Password to generate and securely store strong passwords. Enable two-factor authentication for an added layer of security.

Watch Out for Phishing Scams

Phishing ploys impersonate trusted brands via email, text, phone calls, and fake websites to steal personal information. Check the sender’s full email address or website URLs for misspellings and other red flags. Verify requests by contacting the company directly. Never share login credentials or sensitive data via unsolicited messages.

Use a VPN for Public WiFi

Public WiFi makes it easy for criminals to spy on your online activity and steal credentials. Use a Virtual Private Network (VPN) to encrypt your connection when accessing public hotspots. VPNs like NordVPN and ExpressVPN mask your IP address and data.

Clear Cookies and Browser History

Cookies and browsing history can reveal personal details and passwords. Regularly clear your cookies, cache, and history in your browser settings. Sign out of accounts after use. Consider using an incognito or private browsing mode when accessing financial accounts.

Enable Account Alerts

Monitor accounts with text or email alerts for key activity like transactions and password changes. Alerts let you react quickly to unauthorized activity. Receive notifications for large purchases or withdrawals to stay on top of suspicious behavior.

Keep Documents Safe

Lock up checkbooks, account statements, IDs, and other key documents when not in use. Invest in a safe, lockbox, or filing cabinet dedicated to sensitive paperwork and valuables. Shred receipts, credit offers, and statements before disposal using a cross-cutting shredder.

Watch for “Too Good to Be True” Offers

If it seems too good to be true, it probably is. Financially savvy seniors should watch for deals promising guaranteed returns with minimal risk. Verify investment opportunities and do research using objective third party sources like the SEC or BBB. Don’t let hype or high-pressure tactics rush your decision.

Monitor Your Credit

Keep close tabs on your credit by reviewing credit card and bank statements frequently and ordering annual credit reports for free at AnnualCreditReport.com. Dispute any suspicious activity immediately. Consider signing up for credit monitoring through a service like IdentityForce for greater visibility.

Place Fraud Alerts

Contact one of the three major credit bureaus to place a free 90-day initial fraud alert if identity theft is suspected. Alerts make it harder for criminals to open new fraudulent accounts. To extend protection, it must be renewed after 90 days.

Freeze Credit

Placing a credit freeze restricts access to your credit report, blocking criminals from opening new accounts. Freezes must be temporarily lifted when applying for credit. Fees may apply for seniors depending on state laws.

Sign Up for Scam Alerts

Get savvy about the latest financial fraud trends by subscribing to the FTC scam alerts, BBB scam tracker, CISA alerts, and your state/local consumer protection offices. These resources help you identify and avoid new scams circulating.

Talk to Your Bank

Discuss fraud prevention and available protections with your financial institutions. Many banks offer enhanced security options, fraud monitoring, suspicious activity alerts, and ability to freeze accounts. Implement additional safeguards like transaction limits for large withdrawals/transfers for seniors.

With increasingly sophisticated fraudsters looking to take advantage of vulnerable populations, it is crucial to take preventative measures. Combining online protections with common-sense offline tactics can help seniors and individuals of all ages avoid handing over their hard-earned savings to criminals. Remain vigilant and think twice before sharing valuable personal and financial details.