Protect yourself

How to stay safe from financial scams

One of the biggest mistakes you can make when it comes to protecting yourself from financial scams is thinking you’re too smart to be duped by one.

“We’re all vulnerable — we can all fall for a scam given the right set of circumstances,” says Eva Velasquez, president and CEO of the Identity Theft Resource Center, a nonprofit organization that provides advice and assistance related to identity theft.

“You look at the profiles of victims who filed complaints and it runs the gamut from highly educated, high-income people all the way down to the most vulnerable people in our population,” says John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League, a nonprofit advocacy group that speaks out about consumer concerns.

While there isn’t a “foolproof solution to stay safe from all scams,” as Breyault puts it, there are strategies you can employ to reduce your risk. Here are some of the most important ones:

1 Hang up and ‘Go to the source’ If you’re contacted by anyone claiming to be your bank or other familiar company, end the conversation and call the institution’s verified number yourself, Velasquez says. Otherwise, you don’t actually know who’s on the other end of the line, she says, especially because scammers can spoof the number that shows up on your caller ID so it might look legitimate.

2 Secure and monitor your accounts Basic online security practices can also help protect you, Velasquez says. She recommends enabling multifactor authentication on your financial accounts, creating unique passwords and not sharing personal details such as your birthdate online.

Jason Zirkle, training director at the Association of Certified Fraud Examiners and former fraud analyst with law enforcement, suggests checking your financial accounts at least once a week and investigating any unidentified charges immediately.

3 Report scams and be your own advocate Reporting fraud to government agencies and private organizations allows for better fraud tracking. While there’s no centralized source for fraud tracking, you can report it to the Federal Trade Commission, your local police station and your bank’s fraud department, among others.

Most people who lose money to scams never see it again, but your financial institution or law enforcement might be able to help you recover some or all of it.