How to protect yourself from prevalent fraud

Don’t count on your bank to replace your money if you’ve been taken by a scam. It all depends on the bank’s investigation of how the money was removed. And most major banks are taking a tough line on reimbursements these days. So if you were scammed into giving out your PIN or transferring money, the odds are you’re out of luck.

The key difference between a fraud and a scam is whether you authorized the payment. You can authorize a payment by sharing your password or the one-time passcode a bank sends, or by sending a wire or check. Fraud is when someone uses your account without your authorization.

Americans lost nearly $9 billion to fraud and scams in 2022. About one-quarter of those losses came when someone impersonated a trusted person or institutional official (such as a representative of the IRS or even a bank’s fraud department) to get the victim to send money immediately. Or they can make voice-altered requests to elders pretending to be their grandchild being detained in jail until the victim can send the “bail” money.

The elderly may tend to be less tech savvy, but they are far from the only victims. Far too many people click on a text authorization that leads to fraud. Banks now routinely demand your confirmation before large transfers to unknown payees are made. Pay attention.

Payment systems such as Paypal have their own guidelines — but these, too, are based on withdrawals from your bank account or payments on your credit card. Once money is withdrawn, it’s almost impossible to get it back. Zelle is a “closedloop” of banks, which makes it easier for the receiving bank to lock up the fraudulently transferred money, but only if you catch and report it quickly.

Credit cards have a zero-liability protection policy in most cases for purchases customers didn’t make, but it can take more than 90 days for them to investigate a dispute and decide whether to return your money. Debit cards, tied to checking accounts, also have similar protection — but ultimately the return policy depends on the bank and its investigation.

WHAT TO DO TO PREVENT FRAUD Slow down.

Crooks rely on consumers being in a hurry and clicking on texts or emails authorizing purchases.

bank account and credit card balances securely online — at least once a week, and frequently if you’re active online.

Monitor your

two-factor authentication system for your major accounts.

Create a

Change your passwords annually and create a separate password for each financial site you use.

If someone calls saying they’re from your bank, ask for their name and tell them you will call them back at the number on the back of your credit or debit card.

Freeze your credit report. That prevents new accounts from being opened in your name. And check your credit report quarterly at www.freecreditreport.com.

Accept the fact that your information is almost certainly out there on the Dark Web, making warnings from identity theft protection programs almost irrelevant.

Learn more and use helpful resources at www.IDTheftCenter.org.

FBI spokesperson Siobhan Johnson warns against being embarrassed to report a scam. Instead, act immediately to report any fraudulent activities by calling 1-800-CALL-FBI or going to their fraud website at www.ic3.gov. Says Johnson: “Your report sets in motion a chain of events that may lead to the funds being frozen before they reach the scammer.

And that’s the Savage Truth.