Fraud and security

FRAUD & SECURITY

In this section, we’ll address essential measures to protect yourself from fraud and secure your banking accounts. With the information on checking accounts, savings accounts, CDs, and interest rates we’ve covered, it’s crucial to understand how to safeguard your financial assets from common threats. Here’s an overview of common fraud types and practical steps you can take to enhance the security of your accounts.

Common Types of Fraud

1. Phishing
   • What It Is: Phishing involves fraudulent messages designed to trick you into revealing sensitive information, such as login credentials or personal details. These messages often come in the form of emails or texts that appear to be from legitimate sources, like your bank.
   • Example: You receive an email saying, “Your account is at risk. Click here to verify your information immediately.” If you click the link, you might be directed to a fake website that looks like your bank’s site. Any information you enter will be stolen by the fraudster.
   • How to Avoid It: Always verify the sender’s email address, be wary of urgent requests, and never click on suspicious links. If in doubt, contact your bank directly using known contact details.
2. Debit Card Theft
   • What It Is: This occurs when someone gains unauthorized access to your debit card or card information, often through physical theft or data breaches.
   • Example: If you lose your debit card or are informed of a company breach where your card was used, the thief might use your information to make fraudulent purchases.
   • How to Avoid It: Report lost or stolen cards immediately to your bank, monitor your statements regularly, and request a new card if you suspect theft.
3. Card Skimming
   • What It Is: Card skimming involves a device secretly installed on ATMs or gas station pumps to capture your card information as you use it.
   • Example: A hidden skimmer might be placed over a card reader at an ATM, collecting your card details without your knowledge.
   • How to Avoid It: Inspect card readers before use, look for any signs of tampering, and cover your PIN while entering it.
4. Phone Calls and Text Scams
   • What It Is: Scammers may call or text you, pretending to be your bank, and ask for personal information.
   • Example: You receive a call from someone claiming to be from your bank, asking for your account number or social security number.
   • How to Avoid It: Your bank will never ask for sensitive information over the phone or via text. Hang up and call your bank using the official number to verify the request.
5. Stolen Checks
   • What It Is: Checks that are stolen or intercepted can be altered and cashed fraudulently.
   • Example: A thief intercepts a check you mailed, alters the payee and amount, and deposits it into their account.
   • How to Avoid It: Minimize check usage, use secure methods for mailing checks, and consider electronic payments.

Ways to Protect Your Accounts

1. Review Transactions Regularly
   • Why It Matters: Regularly checking your account statements helps you quickly spot any unauthorized transactions.
   • How To Do It: Set a schedule to review your transactions weekly or monthly. Report any discrepancies to your bank immediately.
2. Set Up Account Alerts
   • Why It Matters: Alerts keep you informed about important account activities, such as low balances or unusual transactions, allowing for prompt action.
   • How To Do It: Most banks offer customizable alerts via text or email. Set up alerts for various activities, such as withdrawals, deposits, or balance changes.
3. Secure Your Personal Information
   • Why It Matters: Protecting your passwords, PINs, and account numbers helps prevent unauthorized access to your accounts.
   • How To Do It: Use strong, unique passwords for your online accounts, cover your PIN while entering it, and log off from shared computers. Avoid sharing your personal and banking information.

What To Do If You Encounter Fraud

If you discover fraud in your accounts, report it to your bank as soon as possible. Your bank will investigate the issue and typically reimburse you for the stolen funds if you report it promptly. This is far preferable to having cash stolen, which is generally unrecoverable.

Bank Safety Concerns

You might wonder about the safety of your money if a bank were to go bankrupt. In the next section, we’ll cover how the FDIC (Federal Deposit Insurance Corporation) protects your deposits and ensures your funds are safe, even in the event of a bank failure.

Understanding these fraud risks and protection strategies will help you manage your accounts securely and confidently. Stay vigilant, safeguard your information, and monitor your accounts regularly to protect yourself from financial fraud.