Author: Sarah Marshall, Digital Marketing Specialist
Did you hear that the FTC reported that it received more than 1.1 million identity theft complaints on its website in 2022 alone? And it’s not stopping. Financial crimes are on the rise and becoming more common affecting millions of people every year. It’s no longer an option to stay current on emerging trends, it’s absolutely necessary to safeguard yourself, your family, and your business from these threats. In this article, we will help you do that by highlighting some of the most prevalent and dangerous financial crimes that you should be aware of, including helpful tips to keep safe.
1. Identity Theft: Identity theft is when someone uses your personal or financial information without your permission to commit fraud or other crimes. To protect yourself from identity theft, follow these tips:
- Shred any documents that have your personal information
- Never give out your Social Security number, bank account number, or other personal information to anyone who contacts you by phone, email, or text.
- Check your credit reports regularly for any errors or signs of identity theft. You can get a free credit report weekly from each of the three major credit bureaus: Equifax, Experian, and TransUnion.
- Monitor your bank accounts and credit card statements for any unauthorized or suspicious transactions.
2. Cybercrime: With the rapid growth of technology, cybercrime has become one of the most significant financial crime trends. Cybercriminals use various tactics such as phishing, malware, and ransomware to steal sensitive data and money from individuals and businesses. To protect yourself from Cybercrime, follow these tips:
- Use a full-service internet security suite that can protect your devices, online privacy, and identity from malware, ransomware, phishing, and other threats.
- Use strong and unique passwords for each of your online accounts and services. You should also enable multi-factor authentication (MFA) whenever possible.
- Keep your software and operating systems updated with the latest security patches and updates.
- Avoid opening suspicious emails or attachments and clicking on unknown links or ads that may contain malware or ransomware.
3. Elder Financial Abuse: This heartless scheme is becoming far too familiar, impacting millions of the elderly across communities every year. This occurs when someone close to an elderly person uses their personal or financial information without permission to commit fraud and/or gain access to money. It can be done by family members, friends, caregivers, or strangers who take advantage of their loneliness, trust and vulnerability. Fortunately, there are steps you can take to keep the elderly people in your life safer:
- Secure private information such as Social Security cards, passports, bank account numbers, financial statements, medical records, and other legal documents in a fire-proof safe.
- Help monitor and check bank accounts and bill statements carefully. If you notice unauthorized charges or unusual activity, alert your bank immediately.
- Reinforce to only share your information with trusted sources and when absolutely necessary.
- Encourage use of strong passwords and multi-factor authentication online accounts and services.
- Verify the legitimacy of any requests for money or information by contacting the official sources directly or visiting their websites.
- Help report any suspicious or fraudulent activity to your bank immediately, in addition to authorities, such as the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), or the National Adult Protective Services Association (NAPSA).
4. Fraudulent Investment Schemes: Investment scams are becoming increasingly sophisticated, with scammers using social engineering tactics to gain your trust. These schemes involve promises of glamorous high returns or exclusive investment opportunities. Follow these tips to protect yourself:
- Ask questions. Don’t be afraid to ask for more information or clarification about the investment, such as how it works, what are the risks, what are the fees, and who is behind it. If the seller is vague, evasive, or aggressive, or if they pressure you to act quickly, that is a red flag.
- Research before you invest. Don’t rely on unsolicited emails, phone calls, or messages that claim to have a great investment opportunity for you.
- Know the salesperson. Make sure you know who is selling you the investment and whether they are licensed or registered to do so.
- Be wary of unsolicited offers. Be especially cautious if you receive an offer to invest in something that you didn’t ask for or expect, such as a foreign or offshore investment, a pre-IPO investment, a prime bank investment, or a cryptocurrency-related investment.
5. Business Email Compromise (BEC): BEC is a type of fraud where an attacker gains access to an email account and uses it to impersonate the owner to send fraudulent emails to clients or employees. BEC attacks are often difficult to detect and can result in significant financial loss. Good news is that you can protect your business by taking steps including:
- Use a secure email solution, which automatically flags and deletes suspicious emails or alerts when the sender isn’t verified. Then you can block certain senders and report emails as spam
- Make your email harder to compromise by turning on multifactor authentication (MFA), which requires a second form of verification in addition to your password
- Train your employees to recognize the warning signs. They should know how to identify suspicious links, attachments, and requests for sensitive information
- If you receive an email requesting money or sensitive information, verify the request by calling the sender directly or using a known phone number
- Keep your software up to date to ensure that you have the latest security patches and features. If your employees use personal devices for work purposes, make sure to have a policy and communication plan in place for BYOD upgrades
By staying informed and implementing these measures, you can better protect yourself and your business against the growing threat of financial crime.
Stay vigilant and report any suspicious activity!