Top 15 ways to avoid common financial scams.

Consider your money as a chest filled with jewels and the fraudsters as the pirates that are after your gold. They are trying to fool you with many ways – lying about the promises they make, making calls that sound urgent, and offering you things that are too good to be true – just to get your money. Nevertheless, there is some good news for you: you can train to recognize their deceptions and thus, guard your treasure! This does not mean you have to learn a lot of complex financial terms; it is just about applying simple and effective methods to secure your money. Imagine this tutorial as a treasure map of your own, which directs you towards safety and away from the snare of the pirates.

Verify the sender before clicking links or attachments:

Before clicking any link or attachment, it is always good practice to check the sender. Fraudsters can impersonate the bank or legit companies just to get your personal data. If a text looks doubtful to you, reach out to the business through a phone number or website that you are sure is real, and not the one given in the message.

Double-check payment details before sending money:

Before carrying out your monetary transaction, it is of utmost importance to confirm each and every payment detail directly with the person or company you are about to pay. One of the main ways fraudsters make money is through fake invoices and emails, which they send to the victim pretending to be a trusted person like one’s boss, family member, or regular vendor. These emails might give you the bank account information which is not a legit one and might make you feel like you are missing out if you don’t take the offer quickly. To avoid such a situation, always use the contact information you have, not the one provided in the payment request. Instead, call the recipient through a verified number that you have, which could be the number from past bills, business cards, or previous conversations, and verbally confirm the account number and routing number. It only takes that extra minute to verify, but it could make all the difference between losing a great deal of money often and not at all!

Shred documents with personal info and lock your mailbox:

Make it a rule to shred any paperwork which has personal information on it, for instance, bank statements or pre-approved credit offers, before disposing them off. It is a way of protecting your personal identity because it will draw assassins to your garbage only to find nothing. Moreover, do not forget to lock the mailbox so that it becomes hard for thieves to get the mail containing new credit cards or other documents that are sensitive. These petty physical security habits are the very first line of defense against identity theft.

Trust your gut and slow down:

Scammers take advantage of urgency and pressure to get you to act without any thought. If a deal seems suspect or a communication produces a feeling of panic, listen to your intuition. This is the warning sign from your gut. It is always a good idea to slow down and pause for a moment to think critically. Trustworthy companies will not put you in a position where you must decide or pay immediately. Taking the time to ask questions is a strong move that can save you from a very expensive mistake.

Don’t allow remote access to your computer unless you initiated the contact:

It is never a good idea to allow someone to have remote access to your computer, phone, or other devices unless you are the one who called a verified and trusted company for a specific reason, such as tech support you want and no one else. One of the most common scams is when criminals alert you by calling, texting, or even popping up messages on your screen claiming to be from Microsoft, your internet provider, or even your bank. They will keep on saying that your computer is infected with a virus and that they need “remote access” to fix it. If you give them this access, you are actually allowing them to take total control of your computer and steal your personal files, passwords, and financial information. Legitimate companies do not initiate unsolicited contact in order to request access to your device.

Avoid “too good to be true” investments (pig butchering / romance + crypto scams):

You should be very careful when it comes to any investments that assure you of huge, guaranteed returns, particularly if you got to know the person via a dating app or social media. It is most likely a “pig butchering” scheme. The fraudster gains your trust and later directs you to a non-existing cryptocurrency site where they will show you fake profits to tempt you into putting more money in. However, at the end of the day, they will vanish with your money. If it sounds too good to be true, it is a fraud.

Be extremely skeptical of unsolicited job offers with big pay for little work:

It is imperative that one stays extremely cautious with unsolicited job offers that guarantee high salaries just for doing easy tasks, particularly if they come from a text or an email. Most of these are just scams. One of the very common scams is to send you a fictitious check for “equipment” and then to have you transfer a part of the money back before the check bounces leaving you to take care of the entire amount. No real employer will ever hire you without a personal meeting and certainly would not transfer any of their money through your bank account.

Monitor your accounts daily or weekly and set up alerts:

Get into the practice of daily or weekly checking at least your bank and credit card accounts. This constant surveillance is your greatest protection against detecting unauthorized transactions in no time. Moreover, to ease your burden, arrange for text or email notifications with your bank for any transaction exceeding a specific amount, or for every online purchase. By doing so, you will be immediately informed of any dubious activity, hence, you will have the opportunity to report it and prevent the fraudster from causing any major damage.

Use virtual credit card numbers or one-time cards for online shopping:

One of the most effective ways to safeguard your funds during internet shopping is by making use of virtual credit card numbers or single-use cards. These are the card numbers that are generated randomly and are connected to your principal account which you utilize for a single transaction or retailer. In case the website you made a purchase from gets hacked or the number gets stolen by a hacker, your actual credit card information will still be safe. The virtual number that has been stolen will not be of any use for any other transaction; hence, fraud will be prevented before it happens and you will be able to enjoy great peace of mind.

Never pay with gift cards, cryptocurrency, or payment apps for things that sound official:

Never ever use gift cards, cryptocurrencies, or peer-to-peer payment apps (like Venmo or Cash App) to pay something that sounds official, e.g., a government fee, tax bill, or a sweepstakes you’ve “won.” This is a big warning sign for a fraud. Real companies and organizations will not ask you to pay in these untraceable, non-refundable ways. The con artists will only demand these methods because once you transfer the funds, they are gone forever, and you have no way of getting them back or tracing the recipient.

Freeze your credit at all three bureaus (Equifax, Experian, TransUnion):

Placing a security freeze on your credit file at the three main bureaus namely: Equifax, Experian, and TransUnion is one of the most productive measures you can adopt to thwart identity theft. The freeze secures your credit in a way that no one, including you, can get a new loan, credit card, or service in your name until you temporarily lift or “thaw” the freeze using a PIN. Since credit will not be extended by most businesses without checking your file first, this measure will prevent an identity thief from succeeding even if they possess your Social Security number. You can freeze and unfreeze your credit for free, and it will continue to be a stronghold of protection that is permanently provided.

Turn on two-factor authentication (2FA) everywhere:

Whenever there is an option for it, two-factor authentication (2FA) should be enabled on all your online accounts, particularly on email, banking, and social media. 2FA brings in a vital second stage to the login sequence by asking for both your password and the unique, temporary code which is either sent to your phone or generated by an app. Therefore, even if a criminal manages to get hold of your password, he won’t be able to enter your account as he doesn’t have the physical device too. This is very easy and very effective way to protect your digital life from intruders.

Use strong, unique passwords + a password manager:

It is a necessity to create very strong and unique passwords for all of your online accounts. A very strong password is long and has a combination of letters, numbers, and symbols. The main thing here is that it has to be unique; if you use the same password on several websites, it is very unsafe since the hacker will have access to all your other accounts after one company’s data breach. The use of a trustworthy password manager is the only practical way to handle this. This software creates and saves complicated and distinctive passwords for you, and all you have to do is to remember the one master password to access all of them, thus making your online life both more secure and more convenient.

Ignore unsolicited calls, texts, or emails asking for urgent action:

It is better to follow a rule not to respond to any unsolicited communications – calls, texts, or emails – requiring urgent action. Scammers apply pressure and create a false sense of emergency – for instance, threatening to disconnect your utilities, saying a family member is in trouble or that your account is compromised—just to make you panic and skip your better judgment. Honest companies are not going to force payment or ask for personal information in these ways. You not only cease the scamming process but also save yourself from the scammer’s manipulation by simply not responding and either going for the delete option or just hanging up the phone.

Never give out one-time passcodes (OTPs) or verification codes:

You are not allowed to read a one-time passcode (OTP) or verification code half, even if the person who calls, texts, or emails you is a police officer. These codes are a major security factor, restricting access to your identity and making it hard for the impostors to get in. A typical scam involves a hacker who has already gotten hold of your password. They will initiate a login, the code will be sent to your phone, and then, pretending to be from the bank’s fraud department, the hacker will call you and ask you to “verify your identity” by providing that very code. If you give it to them, they will have the last key to your account and will be able to silently change your password, steal your money and information, and lock you out. Legitimate companies will never ask you for this code.

Conclusion

You’ve equipped your mind with the knowledge that will help you to deceive the scammers and, thus, keep your money safe. The finance domain can be complex, but it does not have to be frightening. Staying inquisitive, raising doubts, and verifying the information are the ways to making a solid financial fraud defense. Follow your gut, be suspicious of things that seem overly good, and do not slow down asking for counsel from a reliable source. You are not simply evading the fraudsters; you are actually securing your financial destiny. Now, go, and with the right attitude and skills conquer the financial world!

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