Fraud Trends

Last week, I talked about the risks associated with Instant Payment apps such as Venmo and Zelle in Safety in a P2P World. Of course, fraudsters don’t stick to one method of scamming people; they will do just about anything to get your money. Let’s discuss another common scam that is on the rise.

One common tactic fraudsters use is faking a wire. We know when a thief gains control over an email account, they can wreak havoc by impersonating a legitimate person or business and steal money from unsuspecting victims. You think you are making a purchase or making a payment with a wire, but really, you are just depositing the money into the hands of a scammer.

Before completing your wire, confirm the identity of the recipient. Always use a known, published number to make the call rather than using any contact number relayed in an email.

If you are being coerced or rushed, that is a Big Red Flag. Don’t give in to high-pressure tactics. When in doubt, stop and reconsider.

Scammers like electronic payment methods because it is quick and their pool of potential victims is humungous. You can protect yourself by taking the following precautions:

·         Never share your personal information online. This includes your full name, address, phone number, date of birth, etc. The less you have out there, the less that they can use against you.

·         Never use the same passwords across platforms. Sure, it is convenient to have the same password, but once a hacker gets ahold of it, they will test it everywhere. Create strong passwords that use a combination of alpha and numeric characters as well as special characters when allowed. When it comes to passwords, bigger is usually better. Opt for a longer password wherever possible. Need some password tips? I wrote a Blog about it.

·         Use social media discretion. If you choose to use social media, be cautious about the permissions that the app requests. Authorizing contact access can open up a whole can of worms for your Internet privacy. You want to apply this theory to all information on social media, including what you choose to post, who can see your posts, and the “About Me” info that you complete.

Have you heard about another scam that you want to share with us? I want to hear from you! Leave a comment below or email me.

Krista Kyte is a personal finance blogger and personal banker with over 18 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that help consumers reach and maintain financial security and start living the life they’ve always wanted.