Take-Aways From a Seminar About Fraud

 One of the activities that I pack into my busy schedule is volunteering as a room host for the same non-profit educational foundation, Master the Possibilities, that I am a paid instructor for. In short, I take attendance at other faculty members’ classes and get to learn a lot of interesting things for free.

I recently attended a class about fraud and below are my key take-aways:

 

Multiple Channels of Fraudulent Outreach- There are many ways that fraud victims are contacted including by phone, text, and e-mail. Also, pop-up messages on a computer with fake virus warnings that trick people into taking action that exposes personal information. The pop-ups may tell victims to call a “tech support” number and then panic them into providing remote computer access, personal identification information, or payment for fake fixes.

 

Fraud vs. Scam- The terms fraud and scam are closely related, but they aren’t exactly the same. Fraud, a broader term, refers to intentional deception used to gain something of value (like money, property, or identity) from someone else. Fraud can happen in many settings. Scam is more of an everyday term. It refers to a specific trick or scheme designed to deceive a person directly, often online, over the phone, or in person, to steal money or information. Scams are a type of fraud.

 

Skimming Devices are Passe’- Bluetooth technology is increasingly being used in place of traditional skimming devices to steal credit card information. Criminals discreetly install Bluetooth-enabled skimmers on card readers or gas pumps and retrieve data wirelessly (think laptops in a parking lot) from a 30 foot range away. Bluetooth skimming makes detection harder, allowing thieves to collect card numbers remotely and avoid frequent physical recovery of devices.

 

Tap to Pay- Tapping a credit card (i.e., contactless technology) is the safest and fastest way to pay for purchases. It uses encrypted technology that protects your credit card number. Transactions are completed in seconds, reducing time at checkout and limiting exposure to fraud. Tap-to-pay cards generate a unique, one-time code for each transaction, which helps prevent hackers from reusing stolen data. This feature makes it much more secure than swiping or inserting a chip card.

 

Keep Your Credit Card Close- Follow a personal decision rule that states “nobody ever takes my credit card out of my sight.” While most employees are honest, dishonest waiters or clerks have an opportunity to skim a card or snap a cell phone photo of card numbers and misuse your data. Three alternative payment options at restaurants are 1. pay with cash, 2. request a remote credit card payment device, or 3. follow a waiter to a cash register to oversee the transaction. Granted, the last two can be awkward but they do reduce the risk of fraud.

 

Three More Things- 1. Don’t do Facebook games or quizzes (e.g. “Find a dog that looks like you”) that require answers to questions that could also be security questions, 2. Pull your credit report at least once a year to check for errors and evidence of identity theft, and 3. Freeze (block) your credit to prevent new (fraudulent) credit from being opened in your name and thaw (unlock) your credit for 24-48 hours if you need to borrow money, open a bank account, or get a new utility service.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

Navigating Fintech and Financial Fraud

I recently attended a webinar about investment fraud sponsored by OneOp. The speakers were from the U.S. Securities and Exchange Commission (SEC). Below are six key take-aways:

FinTech Platforms-Financial technology (FinTech) is increasingly being used for banking, lending, bill payments, and wealth management. Investment advisory platforms typically include an initial assessment through an online questionnaire (e.g., goals, age), automated portfolio recommendations, and automated management. Fees/commissions vary widely among providers. SEC-registered platforms are subject to examinations and enforcement and have SIPC insurance against insolvency.

 

Online Gambling- Research suggests money spent on online sports betting overwhelmingly comes from money that was previously spent on more stable, long-term investments like retirement savings accounts. One study found that bettors spent, on average, $1,100 per year on online bets. For every dollar spent on betting, bettors put $2 fewer into investments. The study author (Scott Baker, Northwestern University) concluded “Bettors are looking for the big win at the expense of savings.”

 

Modern Twists on Old Scams- Fraudulent individuals or public companies may use the promise of artificial intelligence (AI) and emerging technologies to lure investors. Bad actors love to use the latest trends or events to promote outright frauds. Watch out for heavily promoted microcap stocks that may be the focal point of a “pump and dump” scam. Also beware of messages claiming to come from companies and government agencies. AI makes it easy to clone voices and make fake videos.

 

Advantages of Diversification- Diversification can lower the risk of investing. If a single company or sector loses value, exposure to other investments may limit their losses. Broadly diversified, low fee index mutual funds or exchange-traded funds and target date funds are easy ways to achieve diversification. For example, the Standard & Poor’s 500 index tracks the 500 largest U.S. publicly traded companies and total stock market funds offer even broader diversification.

 

Market Timing- Market timing (i.e., moving money in and out of the stock market to try to track high and low prices) is difficult and expensive. A Library of Congress study found that active traders are more likely to underperform the market. In addition, frequent traders typically pay higher taxes than investors with long term “buy and hold” investments. The best and worst days in the stock market tend to happen close together.

 

Account Protection- The SEC offered the following advice to protect online accounts from fraud: pick strong passwords and keep them secure, use multi-factor authentication (e.g., texted or e-mailed codes) or biometric safeguards (e.g., facial characteristics, fingerprints, retinas, and voices), and turn on account alerts. Also, avoid using public wifi for online access, be careful clicking on links, and beware of relationship scams and affinity fraud scams that target specific groups.

 

For additional information about investing and investment fraud, visit www.investor.gov.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

It’s That Time Again! A Quarterly Summary of Webinar Takeaways

 

We are three-quarters of the way through 2025 and it’s time for another summary of takeaways from webinars that I have recently attended. Below are seven nuggets that stood out to me as I reviewed notes taken in my personal learning journal:

 

“Financial Winter” Analogy- What do you do when winter is coming? You prepare by getting a coat! When a “financial winter” occurs (e.g., unemployment or unexpected events that cost money), and it eventually will, your “coat” includes emergency savings and adequate insurance.

 

Index Fund Advantage- Over 20 years, only about 7% of investment professionals “beat the market” (i.e., outperform market indices) and the remaining 93% underperformed. Since most investment pros can’t get this right, there is clearly an advantage to “buying the market” with index funds that are well diversified and generally have low expense ratios.

 

Fraud Statistics- Losses to fraud in 2024 totaled about $12.5 billion and 2.6 million consumers complained to the Federal Trade Commission (FTC). The most common type of fraud was imposter scams and the second most common was online shopping scams. E-mail was the most common way that consumers reported being contacted by scammers. People age 20-29 reported losing money more often than those age 70+ but older adults lost the most money.

 

Financial Literacy Education- As of July 2025, a total of 29 states passed laws guaranteeing a standalone personal finance course for high school students. In 2011, there were only 11 states. A standalone class is like a “five course meal” of financial education and personal finance embedded in another class (like social studies, economics, or business) is like an appetizer.

 

Long-Term Care (LTC)- There are different types and levels of LTC. The greatest assistance is provided in nursing homes and the least for LTC at home. Most LTC takes place as in-home care. Ways to cover the cost of LTC include LTC insurance and self-insurance. The speaker from New York City noted that, if a nursing home costs $12,000 per month, someone would need $144,000 a year to cover the cost ($720,000 for five years). Obviously, doing this requires some planning.

 

Social Security- Nearly all (94%) of older adults claim Social Security benefits. FICA tax is 7.65% of employees’ pay or 15.3% of net business income for self-employed individuals who pay double for the employee and employer portions. Workers’ highest 35 years of earnings are used to calculate two numbers called AIME and PIA from which benefits are calculated.

 

Economic Uncertainty- The first half of 2025 was chaotic and very fast paced for the U.S. economy. The longer that uncertainty remains in place, the more likely a recession will occur. If inflation numbers go higher as a result of tariffs or other factors, it will be uncomfortable for the Federal Reserve to lower interest rates.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Losing a Cell Phone: Lessons Learned

 You never think it can happen to you…until it does. After years of uneventful cell phone ownership (e.g., no lost phones, no broken screens, no water damage), I lost my cell phone, thankfully for less than 24 hours. I was on a bus trip, the driver made a sharp turn, the bag that I was carrying toppled over, and- unbeknownst to me at the time- my cell phone fell out onto the floor under my seat.

I realized this soon after I got home and couldn’t find my phone. My husband called the number and the phone rang- but not in our home or vehicle. I soon put the pieces together and called the bus company. They found the phone where it had fallen and I quickly retrieved it. Thankfully, the bus we were on was not in service the next day. I shudder to think of what could have happened otherwise.

This incident got me thinking about lost phones, what I did right, and what I could have done better.

What I Did Right

• Retracing My Steps- I worked the problem, thinking through all possible places my phone could have been and ruling out different options (e.g., by the mailbox when we stopped to get mail).

• Password Protection- My phone is password protected and locks down quickly using auto-locks when it is not actively being used. This gave me peace of mind that it could not easily be tampered with if it got into the wrong hands.

• No Financial Data- I do not- and will never- have any personal financial information on my cell phone. For example, apps for financial institutions that I have accounts with. I also do not use phone wallets such as Apple Pay or Google Pay. Less sensitive data that could be stolen.

• Cell Phone Pocket- The back of my phone has an adhesive “pocket” that contains some of my business cards as well as contact information for my husband in case I am unreachable.

What I Could Do Better

• Use Phone Finder Apps- I could have found the phone sooner with an app like “Find My Device” (Android) or “Find My” (IOS). I have since installed one on my phone.

• Use Different Authentication Methods- I am seriously considering different two-factor authentication (2FA) methods, such as biometrics and third party apps, after realizing how vulnerable I was with all my 2FA being done via text messages sent to my phone.

• Double Check for My Phone- I have a new decision rule for the rest of my life. Never leave a venue or a mode of transportation (bus, plane, etc.) without checking for my phone.

So much of our lives are tied to our phones: our contacts, photos, social media, and more. I hope you are never in a similar situation and lose your phone and that my insights, above, are helpful. 

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

Beware of Frauds and Scams

 

Not a week goes by, it seems, when we don’t hear about the hacking of a large third party data base that stores our personal information for its clients (e.g., hospitals and employers) without our knowledge or consent. This makes us vulnerable to online scams and fraud in general.

 

Below are important things to know to avoid becoming a fraud victim:

¨    Nobody is Immune- Scams can happen to anybody regardless of age, income, educational level, etc. That said, older adults are often targeted because they have more wealth and are generally less tech savvy than younger generations. For example, the 352 area code in central Florida is a prime target because it includes a large older adult community called The Villages.

 

¨    Decision Rules are Helpful- Here are three examples. 1. Do not answer the phone if you do not know who is calling. Let it go to voice mail and block the number. 2. If someone cold calls to “verify your identity,” hang up. 3. Don’t “sit on it” if you think you were defrauded. Act immediately to report a scam by calling your bank, credit card company, and/or local police department’s non-emergency number. In other words, get help immediately!

 

¨    Common Fraud “Red Flags”- Here are three examples. 1. Banks, the IRS, Social Security, and Medicare will not call you to “verify information.” 2. If there is actually a warrant for your arrest, authorities will come to get you; they will not ask you for information or money. 3. Requests to pay fees for prizes or to “fix’ fake crimes are common giveaways, as are requests to send money using Bitcoin ATMs, prepaid debit cards, and the numbers on gift cards.

 

¨   Grandchild Scam Methods- A victim gets a call claiming to be from a grandchild in trouble. Perhaps a realistic snippet of their grandchild’s voice is harvested from social media or created using artificial intelligence (AI). A red flag for a grandparent scam is the fake “grandchild” saying something like “I’m badly injured….please talk to this person [fraudster].” The best protection is checking it out. If you are a grandparent, call your grandchildren or their parents.

 

¨   “Love” Can Hurt (Financially)- Romance scams often go on for months so fraudsters “build a bond” before asking victims for money. They often begin on social media and dating apps where fraudsters tell victims they want to get to know them. Connections are also made via  online games such a poker and “Words With Friends.” After a while, they will try to speak to victims on the phone and may send a fake photo. There may even be talk of a future wedding. Fraudsters then ask for money with an excuse such as medical bills or paying for a plane ticket. Experts advise ceasing all communication and never sending money to people you meet online.

 

¨   Fake Shopping Deals- This is where fraudsters pretend to be a legitimate business (e.g., Walmart, Talbots) and bait people with extremely low prices, often with fake ads on social media. They then take victims’ personal information and money but never send ordered items. The best way to avoid this scam is to only click on online shopping links that you search for.

    This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

Scams, Schemes, & Fraud: Tips From Law Enforcement

 

I recently attended two separate programs about consumer fraud, The speakers included a county sheriff, non-profit agency representatives, and state attorney general’s office staff.

 

Below are take-aways from these presentations to help you avoid becoming a fraud victim:

Romance Scams- In 2022, nearly 70,000 people reported a romance scam and losses hit a shocking $1.3 billion to the Federal Trade Commission. Program speakers advised taking any new relationship- especially a virtual one- slow, asking lots of questions to get to know the other party, and looking for inconsistent answers and excuses for why not to meet in person.

 

Phone Scams- There are many varieties: “grandparent” scams requesting money for a grandchild in need, fake charities, pretexting calls purporting to come from a bank or government agency (e.g., the IRS), and fake lotteries and sweepstakes. One speaker advised the following: “Don’t answer phone calls with an unfamiliar number. Let it go to voice mail.”

 

Top Three Scams- The top scams being reported to authorities include 1. AI powered scams (e.g., the use of just 5 seconds of someone’s voice for use in scams such as grandparent scams), 2. Funeral scams (pretexting a funeral home and contacting bereaved families to request money for services), and 3. Tech scams (via pop up messages on a computer with malware links or phone calls claiming to come from companies such as Apple, Google, and Microsoft).

 

Card Skimming- Skimming devices illegally installed on gas pumps or ATMs are used to collect information from the magnetic strip on credit and debit cards to commit crimes. Tips to protect yourself include making transactions inside, using machines closest to physical buildings, and looking for signs of tampering such as loose parts. At gas pumps, paying with cash, credit cards (zero liability policies), or “tap and go” is recommended. If you must use a debit card to pay, experts advise using the “credit card” option instead of entering a PIN.

 

Evergreen Fraud Advice- The following statements are true anywhere, anytime, for anyone:

¨   Legitimate lotteries do not collect credit card data and charge handling fees for prizes

¨   Do not send money to “cold callers” (phone, e-mail, etc.) who you do not know

¨   Do not purchase gift cards or wire money for payments. Instead, Stop. Think. Go Home

¨   If you suspect possible fraud, say something; the worst that can happen is you are wrong

¨   Real technology companies do not contact people out of the blue to request money

¨   If something sounds fishy, walk away, hang up, or delete. Don’t engage with fraudsters.

¨   Monitor bank and credit card statements regularly to quickly identify suspicious activity

¨   Taxpayers can get a PIN (from the IRS) to reduce the risk of being defrauded on their taxes

¨   Vigilance, caution, and time (don’t be rushed into decisions!) are key protective factors

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

Expert Recommendations to Avoid Scams

It seems like scams are everywhere these days and they affect people of all ages. Below are eight expert recommendations to avoid being a victim of fraud:

Get a Contract and Read It- Always have written contracts and review them carefully before signing them when engaging contractors or other service providers to perform work. Don’t leave any blank spaces and always keep a copy of any document that you are asked to sign.

 

Do Due Diligence- Get multiple in-person or online references for service providers (e.g., contractors, financial advisors, house cleaners, lawn care, plumbers) from family, friends, and/or co-workers and check them. Ask to see a vendor’s state license (where a state license is required) and proof of insurance (e.g., for contractors).

 

Don’t Pay Everything Up Front- Be very wary of any company that demands that most or all of the cost of a job be paid in advance. The party that has all the money has the upper hand and the other party has little recourse. A fully paid vendor could care less if you are satisfied with their  service or not. Instead, look for companies that charge a series of installment payments with the final payment due only after satisfactory completion of a product or service.

 

Beware of Personal Check Requests- Always make checks payable to a business name. Be wary if you are asked to make payments for business services to an individual. This is a “red flag” that the business owner may be untrustworthy and/or unlicensed.

 

Use Common Sense- Use the “smell test.” If an offer, deal, or discount does not “smell” right or sounds too good to be true, it probably is. Always employ common sense and a healthy amount of skepticism and walk away from or delete questionable purchases.

 

Beware of Testimonials- Ignore testimonials found in mailed advertisements, television infomercials, and online. The only testimonials that are worth believing are those that come from people that you know and trust.

 

Read Fine Print- A common phrase used by fraud prevention specialists is “the large print giveth and the small print taketh away.” Don’t rely on verbal sales pitches and “guarantees” made by salespeople. Read the fine print and, if you don’t understand it, find someone who does.

 

Beware of “Urgent” Offers- A common “red flag” of fraud is deals presented with language such as “limited time offer” and “you must act now.” Remember that the easiest way to steal people’s money, with the possible exception of at gunpoint, is to force them into a quick decision.

 

In summary, keep your BS meter running at all times and be alert to indications that something is amiss. Nobody will look after your finances better than you do.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Fraud Prevention Tips

 

It seems like everyday we hear stories about people who become victims of fraud. They are tricked into sending advance deposits for products or services they never receive or making wire-transfers to fraudulent accounts, or divulging sensitive information that can be used to wipe out bank accounts or commit identity theft.

What to do? Nobody can completely reduce their risk of being defrauded because not all of our personal information is under our control. For example, our employer could be hacked or our utility company or a hospital or hotel that we recently stayed at. All of these places hold individuals’ personal information including credit card and Social Security numbers.

Below are five fraud risk reduction tips:

Look for Red Flags- Never invest in an opportunity that promises “guaranteed” or “risk-free” returns or astronomical yields in a short period of time. Many people have lost substantial sums investing in non-existent or worthless oil wells, land, securities, businesses, and other fraudulent schemes. Always remember that, if something sounds too good to be true, it probably is!

 

Beware of Electronic Contacts- In recent years, as more people started blocking robocalls on cell phones, fraudsters have taken a different approach. Many now contact victims using text messages and e-mails. Never click on a link or a file in an unsolicited message from someone you don’t know. It could unleash malware on a device or prompt you to divulge personal data.

 

Beware of Pretexting- Many fraudsters trick victims into believing they represent a financial institution, utility company, or government agency. This is called pre-texting, i.e., where victims are contacted under false pretenses. Fraudsters often claim there is something wrong with a victim’s account (or tax return) and need personal information to “verify” or “confirm” its accuracy. Again, an unsolicited request for data from a stranger is a major red flag.

 

Guard Your Credit Cards- A strict interpretation is to never hand your credit card to anyone who can take it out of your sight and potentially steal the numbers. Think waiters in restaurants, for example. Either pay in cash, use a credit card reader (some restaurants have these), or pay with a credit card at a cash register or bar. Another tip: beware of loose or scratched credit card readers at stores or gas stations. This could indicate tampering with a credit card skimmer.

 

Set Up Two-Factor Authentication (2FA)- The objective here is to make it difficult for fraudsters to access financial accounts (e.g., bank and brokerage) to steal money. 2FA is an extra layer of security beyond a user name and password and requires users to insert a unique passcode (texted to their phone) or answer a series of challenge questions.

 

In summary, there are many proactive steps that people can take to reduce their risk of becoming a crime victim. To learn more, read this useful article from AARP.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

 

 

You are Being Influenced: Beware of Harmful Social Media Content

 

We are all influenced by things that we see online and social media is one of the biggest online influences. An estimated 81% of Americans say they have ever used YouTube vs. 69% for Facebook, 40% for Instagram, 28% for LinkedIn, 23% for Twitter, and 21% for TikTok.

 

According to a 2022 report by the Global Web Index, 58.4% of the world’s population uses social media and the average usage is 2 hours and 27 minutes.

 

Social media use has advantages including staying connected with friends and family, getting local and national news for free, and learning new things from respected thought leaders. It also has some downsides including time-use and privacy concerns and associations with anxiety and poor mental health. It can also connect people to do bad things and is a gold mine for scammers.

 

Below are some things to know about negative social media content to avoid being victimized:

Gateway to Fraud- A Federal Trade Commission (FTC) report notes that more than 1 in 4 people who reported losing money to fraud in 2021 said it started on social media (an ad, post or message). Those age 18-39 were more than twice as likely as older adults to report a loss.

 

Investment Scams- More than half of people who reported losses to investment scams, particularly those involving cryptocurrencies, said that they started on social media. Fraudsters often use social media to promote worthless securities and bogus investment opportunities.

 

Romance Scams- FTC data indicate that, after investment scams, romance scams are the second most profitable fraud on social media. More than a third of people who said they lost money to an online romance scam in 2021said it began on Facebook or Instagram.

QR Code Scams- QR codes, first invented in 1994, are often placed in social media posts to connect fraud victims to phony links or malware. In fact, the FBI issued a warning about QR code scams in early 2022. QR scanner apps are available to check for dangerous links.

Dark Patterns- These are tricks that make online users do things they did not mean to do. While not illegal, they can be costly and aggravating and may originate with social media. Examples include free trials that switch to a payment scheme without warning, hidden costs or random items added at checkout, and deliberate misdirection to a more expensive option.

Demographic Differences- Dark patterns with deceptive icons, buttons, and links place a particular burden on already marginalized groups (e.g., low income groups, people of color, people with poor language skills, and people with low digital literacy).

In summary, we are influenced in one way or another. The key is being aware of the different ways that social media can be used to trick or defraud people.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

How to Keep Personal Information Safe

Widespread data hackings are increasingly common, whether it is a credit bureau (Equifax in 2017), a hotel (Marriott in 2018), an online game producer (Zynga in 2019) a federal government agency (OPM in 2015), or an Internet media company (Yahoo! in 2016). Another common scam is phone calls and e-mails claiming to be from a bank...or Social Security...or the IRS. 

In each of these cases, customers’ personal data including e-mail addresses, log-in credentials, credit card numbers, birth dates, and Social Security numbers can be compromised. There may also be fraudulent requests to wire transfer money, reveal computer login credentials, or purchase gift cards and give fraudsters the numbers above the bar code.

What to do to avoid falling prey to scams? Below are seven suggestions to protect private information and reduce your chances of becoming a fraud victim:

 

Practice Cyber Hygiene- Successful fraudsters successfully reach victims through their “weakest link.” It might be something as simple as a weak password or someone revealing TMI (too much information) online. Consider your potential fraud exposures (e.g., reusing the same password/user name combination). While nobody is 100% immune from fraud, the objective is to make yourself a harder target so fraudsters find victims elsewhere.

 

Mix Up Your Log-In Credentials- Fraudsters know that most people use the same username and password in multiple places. When they obtain personal information from a data breach or the Dark Web, they try to exploit it in multiple places using automated scripts, a process known as “credential stuffing.” It will probably take several hours to create a multitude of unique passwords. Once you are done, be sure to record them in a digital assets inventory.

 

Click Cautiously- Some people are tricked into clicking on links, or even photos, that take them to a website that requests personal data or installs malware on their computer that can be executed later to obtain sensitive data. Often, this happens as a result of a phishing e-mail. A good cyber hygiene practice is to not click on any link if you do not know the sender and/or you receive a cryptic message (e.g., check this out!) and do not know what the link is for. Another hygiene practice is using strong passwords with a variety of types of characters.

 

Set Up Two-Factor Authentication- Every personal website of consequence (e.g., bank and investment accounts, pension, Social Security) should have a two-factor (a.k.a., two step) authentication process where a unique one-time password is sent via e-mail or a text message and is necessary to access an account. Some accounts also have challenge questions that must be answered for account access. Typically, two-factor access is a very simple process to set up through the “settings” and “privacy” functions on a website. Again, it’s all about not being an easy target.

 

Freeze Your Credit- A credit freeze blocks access to credit reports to prevent fraudsters from opening credit in a potential identity theft victim’s name. It, therefore, provides an extra layer of fraud prevention protection. Freezes must be done with each of the “big three” credit bureaus (Equifax, Experian, and TransUnion) individually. They do not affect a person’s credit score and there is no cost to freeze credit or to “thaw” (unfreeze) it for a short time to apply for a bank account, line of credit, or utility service. A PIN or password is typically provided for this purpose.

 

Update Your Computer- Another piece of cyber hygiene is keeping an operating system current by installing updates as they become available. Ditto for anti-virus and anti-malware programs. Some experts also advise using a password manager program with two-factor authentication as well as strict privacy settings for social media. Another common recommendation is text alerts or e-mails from financial institutions when changes are made to an account.

 

Stay Current- Many pundits are predicting a future without passwords. Instead, there will be new authentication protocols such as facial biometric scans and fingerprint swiping. Another promising protocol is behavioral monitoring of users’ typical spending patterns to identify “out of the ordinary” behavior. “Keeping current” also means paying attention to scams that feed off current events such as COVID-19, tax season, wars, and natural disasters.

 

For more information about keeping information safe, review this Consumer Financial Protection Bureau website.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.