Don’t Fall For It: Ways to Help Spot and Stop Financial Scams
October is Financial Exploitation Awareness Month – a good time to review ways to protect yourself against financial fraud that could put your money or personal information at risk.
According to the Federal Bureau of Investigation, scams targeting adults ages 60 and older resulted in more than $3.4 billion in losses in 2023.1 That number continues to rise as criminals use more convincing tactics.
Whether it is a fake government call, or an “investment opportunity” that seems too good to be true, learning how to spot some red flags can help you stay protected.
Common Financial Scams and How to Respond
One way scammers may try to trick you into sending them money is by pretending to be someone else, such as a bank representative, an IRS employee, or even a family member. More recently, a common scam has been the highway “tag” scam, in which a scammer would send a fake text message about unpaid tolls.
- Tip: A legitimate organization won’t ask for your Social Security number, bank account details, or passwords over the phone. If in doubt, reach out to your bank to confirm whether it’s a valid communication or a scam and that no action is needed.
Also common is the “family emergency” scam where a scammer pretends to be a loved one who’s in trouble and needs money right away. If you get a call or message like this, don’t act immediately.
Reach out to that person directly—or contact another family member—before sending funds. Taking a moment to check can help you avoid sending money to a scammer.
Fraudsters may also claim your bank account has been frozen, hacked, or compromised, and that they need all your personal information immediately. Don’t click on any links or give out details. Instead, call your financial institution using the number on the back of your debit or credit card. They can confirm that your account is safe.
Steps to Help Protect You from Financial Scams
- Use strong passwords and utilize multi-factor authentication when available.
- Be cautious of urgent situations, as scammers rely on pressure.
- Monitor your accounts regularly to watch for unfamiliar charges or activity.
- Talk to someone you trust before making large or unusual transactions.
- Verify directly with an organization before sharing any personal or financial information.
If you suspect a scam, it’s important to report it. Reporting can help you protect yourself and others.
A few ways to do this:
- For more information on identity theft, fraud, or scams, visit: consumer.ftc.gov.
- Contact your local police department or bank/financial institution immediately.
Staying alert is one of the best ways to safeguard yourself and your loved ones from scams or fraud.
If you ever receive a request that seems suspicious, don’t hesitate to reach out to your financial professional for assistance. They can review your accounts and give you guidance to help keep your finances secure.
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