New Year, Same Fraud: 3 Scams Still Happening and How to Avoid Them
February 2, 2024
In an age where digital transactions are as common as cash, the risk of financial fraud looms larger than ever. While technology has made managing our finances more convenient, it has also opened new fraud risks.
Understanding the 3 Most Common Types of Fraud
There are three common types of financial fraud that continue to cost Americans’ their hard-earned money.
1. Identity Theft: Imagine waking up one day to find your bank account drained, your tax return claimed, or a loan taken out in your name. This nightmare scenario is often the result of identity theft, a crime where fraudsters use your personal information for financial gain. Phishing emails and calls which trick you into revealing sensitive details are a common tactic. Protect yourself by guarding your personal information when on the phone or online. Using robust passwords, monitoring your credit reports and setting up alerts on account activity to catch any suspicious activity early can also limit the potential and impact of someone stealing your identity.
2. Investment Scams: High returns with little to no risk – sounds tempting, right? Investment scams, like the infamous Ponzi scheme, play on this allure. They promise substantial profits but are often just a facade for stealing your investment. The key to avoiding these scams is due diligence. Research every investment opportunity thoroughly, be skeptical of unsolicited offers, and always verify the legitimacy of the entity offering the investment and never wire funds to an untrusted source for any reason.
3. Credit Card Fraud: A stolen credit card number can lead to unauthorized purchases or cash withdrawals, leaving you to foot the bill. Skimming devices on ATMs and gas pumps are a common method used by thieves to capture your card details. To combat this, regularly check your statements for any odd charges, opt for cards with chip technology, and be cautious about where and how you use your credit card. Additionally, be wary of saving your payment details on unsecure websites and using insured payment methods when possible, like PayPal.
By being aware of the common types of fraud and being proactive with your financial security, you can significantly reduce your risk of becoming a victim. Remember, knowledge is power – the more you know about these fraudulent schemes, the better you can protect yourself. Affinity can also help you navigate an instance of fraud to get back on track. For information on credit monitoring and member services visit www.affinityfcu.com.
This information is for informational purposes only, is intended to provide general guidance, and does not constitute legal, tax, or financial advice. Each person's circumstances are different and may not apply to the specific information provided. You should seek the advice of a financial professional, tax consultant, and/or legal counsel to discuss your specific needs before making any financial or other commitments regarding the matters related to your condition.