A modest ATM behind the gas station. one Unexpected text From your bank. one Data Breach. What do these things have in common? They are all the ways fraudsters can steal your personally identifiable data and money.
U.S. consumers lose $12.5 billion in fraud, according to a new new Federal Trade Commission Report. Fraud can take many forms, including a scam where the victim is willing to send money under false pretexts. Identity theft and Unauthorized bank Or credit card transactions.
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Anyone can be the target of fraud regardless of age or other demographics. It even happened to me in the past. Although certain behaviors can increase your risk, fraud can also occur due to uncontrollable factors.
How fraudsters steal your information and money
A lot of fraud occurs when thieves are able to access victims’ bank account or credit card information and make unauthorized purchases or transfers. But how do they get this information first?
This is the biggest threat to your financial account and how to protect yourself:
🗃️Data Breach
When your data is stored using a third-party service, such as your utility, internet provider, or retailer, and your information can fall into the hands of bad actors. up to date Ticketmaster The vulnerability has damaged the information of about 560 million users, including names, emails and some card numbers.
“Database vulnerabilities and other compromises to third-party services are the most common causes of financial fraud,” he said. Aaron Walton, Senior Threat Intel Analyst at Cybersecurity Companies Evicted.
How to protect yourself: While you can’t block third-party service vulnerabilities, you can minimize the impact of data breaches on you. For beginners, do not store data beyond the necessary third-party services. Walton recommends using singles to utilize virtual credit card For online purchases, even if the card number is leaked, criminals cannot use the card for additional purchases.
🔐Bad password security
“If you reuse your password, you’re just asking to take over your account,” said Truman Kain, senior product researcher at cybersecurity firm. Hunter. “This is the first thing you can do if you want your account to be protected.”
After the data breach, the attacker will attempt to use stolen credentials in major online accounts such as banks, retailers and email providers. This process is called credential filling. Using weak, guessing or common passwords also makes it easy for hackers to get into your account, Kain added.
How to protect yourself: Use powerful unique passwords in all your accounts and change them regularly. Your password should be long (experts recommend 16 characters) and contains a combination of lowercase and uppercase letters, numbers and symbols. If it sounds too much, consider getting Password Manager. Kane also recommends enabling it Multi-factor authentication As much as possible on your account.
�Card card skimmer
A skimmer is a device connected to the card reader port that steals your credit card data when you swipe your card. The skimmer then sends the information directly to the card thief or saves it for later search.
The skimmer settings may also include a hidden camera or a fake keyboard to capture your pins. Browsing can even happen online. If an attacker can compromise on the website, they can “browse” information from any new transaction.
How to protect yourself: Before using an ATM or payment terminal, check for loose card readers or any signs of tampering. If you find anything suspicious, please do not insert the card. Criminals tend to install skimmers in low-flow areas to minimize the chance of being caught, so stick to payment terminals and ATMs in high traffic or monitoring areas.
If possible, Pay with Tap – This is not too easy to be plundered – rather than swiping cards. If you are using a debit card, run it as a credit card (if you can) to avoid entering your PIN and stealing this information. To combat online browsing, use a one-time or limited-used virtual card when shopping online.
🪝Phing and other social engineering attacks
Aside from data breaches, phishing attacks are the primary way for attackers to obtain your certificate, Kain said.
Phishing is a target of fraudsters, usually under the guise of legal institutions Deceive you Usually hand over sensitive information through the links they want you to click on. Phishing attacks may occur via phone, email, or text.
How to protect yourself: A good rule of thumb is: “If you don’t ask for information, you should be skeptical about it,” Kain said. If you need to verify that the message is legal, please contact the organization directly via the contact information on its website.
Walton said you should also be skeptical if someone online says you owe them money or have outstanding payments. “Please get closer,” he said. “Don’t let false sense of urgency lure you into an expensive mistake.”
🛜Data stolen unsafe Wi-Fi networks
Visit websites that do not use “https” to securely encrypt traffic Public Wi-Fi Allow cybercriminals to see anything you do online. Cybercriminals can also steal your data by setting up fake public Wi-Fi hotspots.
Once connected to free Wi-Fi, “attackers can redirect you to fake websites that closely mimic real things, capturing your login, password and sensitive data when you enter them,” Kain said.
How to protect yourself: Avoid sensitive transactions for public Wi-Fi. It’s wise to protect yourself with one Virtual Private Network. A VPN encrypts your browsing activity, so even if your data is intercepted, it is unreadable.
“Using a reputable VPN is like sealing internet traffic into a secure envelope,” Kane said.
Other proactive ways to prevent fraud
Despite JD Power’s 2024 US Financial Protection Satisfaction Study issued November.
If you want to protect yourself more actively, experts recommend the following strategies:
Card control
Many banks and credit unions offer card controls that allow you to lock and unlock credit and debit cards online or on mobile apps. Lock cards are not used regularly and unlock them only when you need to buy them, which can help prevent unauthorized transactions from going on.
Freeze your credit
freezing Your credit Will prevent lenders from accessing your credit report, which prevents scammers and identity thieves from opening new credit accounts in your name. If you need to apply for a new loan or credit card, you can file a freeze temporarily and refreeze the credit afterwards.
Using a virtual card
Both Kain and Walton recommend using Virtual card Protect your credit card information from theft. A virtual card is a randomly generated card number connected to your real card. You can set usage restrictions on virtual cards, such as only available for one purchase, making them useless even if the scammers steal card information.
Set up an account alert
Criminals often buy small purchases on stolen credit cards to be tested before using them for large purchases or selling card information on the dark web. If you can capture small fraud transactions in small fraud transactions, you can lock them before any large card happens. To do this, you can set alerts for all transactions or purchases based on a certain dollar amount.
How to report credit card or bank fraud
If you believe you are a victim of fraud, report it to your financial institution immediately. Most banks have designated phone numbers for emergency help. You can then lock your locked credit or debit card to prevent new purchases from happening. Your bank may cancel the compromised card altogether and send you a new card.
In some cases, for example, Social Insurance Number Or other sensitive information is compromised and you may also need to implement a credit freeze or registration Identity theft protection. The latter will help monitor your identity online and can sniff out signs of fraud. You may also want to change the password for your financial account and any other online account and use the same login information to change your password.
Finally, reporting fraud to the FTC is always a good idea reportfraud.ftc.gov Help the federal government foil the scam.
“In many cases, there are certain forms of help, whether it’s employers, law enforcement or elsewhere,” Walton said. “It’s a mistake to believe that no one can help, or should be ashamed of being deceived.”
