5 Steps to Protect Your Finances from Fraud
If there is anything that can turn a smile upside down, it's the sound of money leaving you. If you want this to get worse, it's when money leaves without any purpose at all, or when you feel stupid after losing money. This is exactly what a scam makes you feel.
Scams and fraud schemes have been around for quite some time, but being under lockdown and in need of money has made scams much more plentiful. Today we will look at what fraud or scam is, why people get caught up in them, and how to protect your finances from fraud.
There are so many types of fraud, including tax fraud, online scamming, identity theft, pyramid schemes, phishing and the like.
The word "fraud" isn't new, and people have heard it over and over again. Why do people keep falling for obvious fraud schemes and scams?
Read: How to Live a Debt-free Lifestyle
Scams and fraud schemes have been around for quite some time, but being under lockdown and in need of money has made scams much more plentiful. Today we will look at what fraud or scam is, why people get caught up in them, and how to protect your finances from fraud.
What exactly is fraud?
Fraud can be defined as a situation where a person uses a deceptive means to get information on another person, to the perpetrator's benefit or to the loss of the victim. Scams are often considered synonymous with fraud.There are so many types of fraud, including tax fraud, online scamming, identity theft, pyramid schemes, phishing and the like.
The word "fraud" isn't new, and people have heard it over and over again. Why do people keep falling for obvious fraud schemes and scams?
Read: How to Live a Debt-free Lifestyle
Why do people fall victim to scams?
Many times, people that aren't victims of fraud look at victims and ask, "How did you fall for that?" Often, when the scam is past, victims look back and feel foolish about the whole incident. Yet most of the time, as we have seen in the case of Ponzi schemes, the same set of people fall victim again and again. Why do they do it then?1. Greed
The problem for many people who fall victim to fraud is plain greed. Their lack of contentment makes them chase after every shiny new object. More often than not, they get themselves into trouble. Greed is quite dangerous as it forces people to ignore the red flags and focus on illusory financial gains. At the end of the day, greedy people get scammed and defrauded by other greedy conmen.2. Ignorance
Lack of knowledge is a huge factor as to why many fall victim to scams and fraudulent activities. Many fraudsters pose as legitimate enterprises, and when laymen do not carry out their own deep research, they can easily fall prey to these tactics. The pyramid schemes, for example, pose as real businesses, deceiving their victims to opt into a sort of business model. At the end of the day, it becomes a cycle that leaves the people at the bottom in shame.3. Fear Of Missing Out (FOMO)
Often, fraudulent schemes become so popular that they begin to seem legit. A case in point would be when the popular MMM Ponzi scheme swept across the country. Many people joined in, not because they were sure of what they were getting into, but because a friend had gotten into it. In the end, its crash brought a lot of people’s finances down.Reciprocate Kindness
A lot of psychological research has found that when someone does something small for you, you will most likely feel obligated to reciprocate this act. While in itself, this principle isn't harmful, coupled with someone with a negative intention, it could be quite deadly. Often, fraudsters pose as people who offer help and, in return, rope in their prospects.
Fear of failure.
Have you ever noticed how most fraudulent schemes are posed? The perpetrators often make it sound like you would not have a future if you failed to opt-into their scheme. They especially twist copywriting techniques to guilt-trip unsuspecting people into their schemes.
5 steps to preventing financial fraud
1- Be careful how you share personal details.
Don't give out your personal information carelessly.There are schemes where all they need is your identity, your essential details, ID cards, etc. Secure files and documents you don't need to always have on you in a safe, and be careful where you enter your private information both online and offline. If the website is not secure (HTTPS), then don't enter your private details.
2- Monitor your account transactions.
With most banks, receiving alerts via SMS is a staple. This has its benefits, especially when it is effective. There is a need to monitor your inflow and outflow of cash from your bank. You can easily know and monitor what goes in and out of your account. When you notice strange reflecting transactions in your account, you should inform your bank branch immediately. It might seem small at first, but monitoring these little changes can help safeguard your finances down the line.
3- Do not isolate yourself from friends.
This might not seem directly like financial advice, but as human beings we tend to get support from our fellows. One thing most fraudulent schemes encourage is seclusion from your established circle. Often, you are drawn out of safety and are unable to fact-check a lot of things being thrown at you.
Do not put yourself in such a vulnerable position. Communicate actively with a group of friends or a confidant about financial decisions you take.
4- Create and update your passwords.
Almost all online accounts require a password. Always make sure to create one that is difficult to guess or break. Make sure your passwords across-the-board are unique and actively change your passwords when it comes to accounts with vital information or ones you use regularly.
Some applications now offer two-factor authentication; make sure to use this whenever it is offered. If you do not trust your smart devices, take extra security measures with your password and write them down in a book.
5- Learn about the various scams around.
Education and constant learning are very important. As we already mentioned, there are certain types of scams that thrive on the ignorance of the victims. The more you know the less likely you are to fall for obvious deceptions. Try to check out what latest scam just got busted or what latest trend is being followed. Read up on older fraud events and occurrences, and learn to connect the dots. It would be easier to walk away when someone comes with a fishy proposition.
What should be your takeaways?
The truth is being a victim of financial fraud can be very painful, with the loss of money and the feeling of being played. But you can better prepare to avoid falling for scams in the future when you can identify why you fall for them, and how you can safeguard yourself against them.
What should be your takeaways?
The truth is being a victim of financial fraud can be very painful, with the loss of money and the feeling of being played. But you can better prepare to avoid falling for scams in the future when you can identify why you fall for them, and how you can safeguard yourself against them.
Having to work so hard to keep your finances in check and setting a financial standards for yourself, only to one day realize you have lost everything to a fraudster who in most cases is a total stranger. Everyone will literally forbid this kind of situation for themselves, still we have an increasing numbers of victims of financial frauds on a daily basis. So, this is the point where we pay attention to the chances of losing our finances as much as we focus on acquiring them.
Our finances are more exposed to frauds in recent times giving that most of our financial activities are digital and carried out online.Hence why we need to be very intentional about safeguarding our finances and protecting it from fraud. The steps you need to take to become the guardian angel of your finances from the hands of these fraudsters (popularly known as 419 in Nigeria) are very simple and when followed meticulously, you can be assured of the safety of your funds. That said, below are five (5) steps you can take to protect your finances from fraud below:
If you are sharing your personal information online for any reason please ensure the website is secured before doing so. You can look out for a padlock icon on the left side of your web browser, if it’s present, then the site is secured and safe to use.
Our finances are more exposed to frauds in recent times giving that most of our financial activities are digital and carried out online.Hence why we need to be very intentional about safeguarding our finances and protecting it from fraud. The steps you need to take to become the guardian angel of your finances from the hands of these fraudsters (popularly known as 419 in Nigeria) are very simple and when followed meticulously, you can be assured of the safety of your funds. That said, below are five (5) steps you can take to protect your finances from fraud below:
1. Do not share your personal information aimlessly
Fraudsters can pretend to be from your bank or another financial institution. They mostly call or send an email claiming they need to verify something, or that your account has some problems and they need your personal information to fix it. Do not share your personal details like BVN (bank verification number) , account number ,credit card details, bank pin, etc over the phone especially if you didn’t initiate the complaint.Other information like your name, home and office address, date of birth, national identification number (nin) and so on should also not be shared with people or businesses you are not familiar with . These information are a great tool to the fraudsters in targeting your finances or even in attempting to steal your identity.If you are sharing your personal information online for any reason please ensure the website is secured before doing so. You can look out for a padlock icon on the left side of your web browser, if it’s present, then the site is secured and safe to use.
2. Don't be Intrigued by ridiculous offers
Offers like deposit N20,000 and get N100,000 in one week and the likes are nothing but a fraudulent approach, just that in this case , you are personally invited to come and squander your money. Making money is not easy so if someone claims you can earn money with little or no work or make a lot of money on an investment with little or no risk, it’s probably a scam, don’t fall for it. There are also cases of purchasing offers that seems too good to be true. For example, if a typical item cost like N150,000 and someone is offering to sell for N50,000, this is a valid reason to be extremely careful.Therefore, ensure you get full details of an offer you are interested in where it looks too good to be true or not. A legitimate business will give you all the relevant details of an offer and state every terms and conditions. Be aware.
3. Protect your Passwords
Whether it is bank pin, ATM card pin, phone passwords and passwords to access other financial accounts of yours,it is safe to use unique and complex passwords . Avoid setting passwords that are quite simple and easy and can be easily guessed by someone else, that is why most websites suggest you set a strong password that are lengthy and consist of both upper and lower case, numbers and symbols. Also, to protect your financial accounts , you can change your passwords regularly and keep them stored securely by writing them down and keeping it out of reach or using a password management tool.
Another way to protect your accounts is to set up two-factor authentication to provide an additional protection to the set password .It makes it more complex for someone else to have access to your account.
4)Pay extra attention to your transactions
Another way to protect your finances against fraud is to review your bank statements and credit card transactions from time to time to look out for any fraudulent activities. We now have access to our bank statements and details online which makes it easy to view your statements at any point in time while minimizing the risk of fraud. In cases where you don’t recognize a transaction on your account, it’s important to report it to your bank and ask for your credit card to be blocked.
Also, enable notifications like the transaction alerts on all your financial accounts, to keep you notified of any transactions immediately. This makes it a good step to protecting your account
In the end, you know what they say about prevention is better than cure? It is also applicable to your finances. As much as we want a cure to end these fraudulent activities, we should be fully involved in protecting ourselves first. Learn and do all you can to protect your finances, follow the necessary steps duly and don’t risk losing your hard earned money to total strangers.
Another way to protect your accounts is to set up two-factor authentication to provide an additional protection to the set password .It makes it more complex for someone else to have access to your account.
4)Pay extra attention to your transactions
Another way to protect your finances against fraud is to review your bank statements and credit card transactions from time to time to look out for any fraudulent activities. We now have access to our bank statements and details online which makes it easy to view your statements at any point in time while minimizing the risk of fraud. In cases where you don’t recognize a transaction on your account, it’s important to report it to your bank and ask for your credit card to be blocked.
Also, enable notifications like the transaction alerts on all your financial accounts, to keep you notified of any transactions immediately. This makes it a good step to protecting your account
5. Learn about Different Fraudulent Tactics
Educating yourself about the different types of fraud and scams can help you avoid becoming a victim. Sometimes , fraud can come in an unexpected way which makes it quite hard to realize on time but when you already understand the severity of fraud and know some of easily recognizable features of a fraudulent activity, it can help you stay alert and make better decisions. You can subscribe to the newsletter of your bank where they inform you from time to time what and what not to do, read news on financial frauds and crimes, learn from past victims etc. Immerse yourself in every details of different fraudulent tactics, this keeps you one step ahead and let you know what you have to do in case there’s a fraudulent attempt on your finances.In the end, you know what they say about prevention is better than cure? It is also applicable to your finances. As much as we want a cure to end these fraudulent activities, we should be fully involved in protecting ourselves first. Learn and do all you can to protect your finances, follow the necessary steps duly and don’t risk losing your hard earned money to total strangers.
Having to work so hard to keep your finances in check and setting a financial standards for yourself, only to one day realize you have lost everything to a fraudster who in most cases is a total stranger. Everyone will literally forbid this kind of situation for themselves, still we have an increasing numbers of victims of financial frauds on a daily basis. So, this is the point where we pay attention to the chances of losing our finances as much as we focus on acquiring them.
Our finances are more exposed to frauds in recent times giving that most of our financial activities are digital and carried out online.Hence why we need to be very intentional about safeguarding our finances and protecting it from fraud. The steps you need to take to become the guardian angel of your finances from the hands of these fraudsters (popularly known as 419 in Nigeria) are very simple and when followed meticulously, you can be assured of the safety of your funds. That said, below are five (5) steps you can take to protect your finances from fraud below:
If you are sharing your personal information online for any reason please ensure the website is secured before doing so. You can look out for a padlock icon on the left side of your web browser, if it’s present, then the site is secured and safe to use.
Our finances are more exposed to frauds in recent times giving that most of our financial activities are digital and carried out online.Hence why we need to be very intentional about safeguarding our finances and protecting it from fraud. The steps you need to take to become the guardian angel of your finances from the hands of these fraudsters (popularly known as 419 in Nigeria) are very simple and when followed meticulously, you can be assured of the safety of your funds. That said, below are five (5) steps you can take to protect your finances from fraud below:
1. Do not share your personal information aimlessly
Fraudsters can pretend to be from your bank or another financial institution. They mostly call or send an email claiming they need to verify something, or that your account has some problems and they need your personal information to fix it. Do not share your personal details like BVN (bank verification number) , account number ,credit card details, bank pin, etc over the phone especially if you didn’t initiate the complaint.Other information like your name, home and office address, date of birth, national identification number (nin) and so on should also not be shared with people or businesses you are not familiar with . These information are a great tool to the fraudsters in targeting your finances or even in attempting to steal your identity.If you are sharing your personal information online for any reason please ensure the website is secured before doing so. You can look out for a padlock icon on the left side of your web browser, if it’s present, then the site is secured and safe to use.
2. Don't be Intrigued by ridiculous offers
Offers like deposit N20,000 and get N100,000 in one week and the likes are nothing but a fraudulent approach, just that in this case , you are personally invited to come and squander your money. Making money is not easy so if someone claims you can earn money with little or no work or make a lot of money on an investment with little or no risk, it’s probably a scam, don’t fall for it. There are also cases of purchasing offers that seems too good to be true. For example, if a typical item cost like N150,000 and someone is offering to sell for N50,000, this is a valid reason to be extremely careful.Therefore, ensure you get full details of an offer you are interested in where it looks too good to be true or not. A legitimate business will give you all the relevant details of an offer and state every terms and conditions. Be aware.
3. Protect your Passwords
Whether it is bank pin, ATM card pin, phone passwords and passwords to access other financial accounts of yours,it is safe to use unique and complex passwords . Avoid setting passwords that are quite simple and easy and can be easily guessed by someone else, that is why most websites suggest you set a strong password that are lengthy and consist of both upper and lower case, numbers and symbols. Also, to protect your financial accounts , you can change your passwords regularly and keep them stored securely by writing them down and keeping it out of reach or using a password management tool.
Another way to protect your accounts is to set up two-factor authentication to provide an additional protection to the set password .It makes it more complex for someone else to have access to your account.
4)Pay extra attention to your transactions
Another way to protect your finances against fraud is to review your bank statements and credit card transactions from time to time to look out for any fraudulent activities. We now have access to our bank statements and details online which makes it easy to view your statements at any point in time while minimizing the risk of fraud. In cases where you don’t recognize a transaction on your account, it’s important to report it to your bank and ask for your credit card to be blocked.
Also, enable notifications like the transaction alerts on all your financial accounts, to keep you notified of any transactions immediately. This makes it a good step to protecting your account
In the end, you know what they say about prevention is better than cure? It is also applicable to your finances. As much as we want a cure to end these fraudulent activities, we should be fully involved in protecting ourselves first. Learn and do all you can to protect your finances, follow the necessary steps duly and don’t risk losing your hard earned money to total strangers.
Another way to protect your accounts is to set up two-factor authentication to provide an additional protection to the set password .It makes it more complex for someone else to have access to your account.
4)Pay extra attention to your transactions
Another way to protect your finances against fraud is to review your bank statements and credit card transactions from time to time to look out for any fraudulent activities. We now have access to our bank statements and details online which makes it easy to view your statements at any point in time while minimizing the risk of fraud. In cases where you don’t recognize a transaction on your account, it’s important to report it to your bank and ask for your credit card to be blocked.
Also, enable notifications like the transaction alerts on all your financial accounts, to keep you notified of any transactions immediately. This makes it a good step to protecting your account
5. Learn about Different Fraudulent Tactics
Educating yourself about the different types of fraud and scams can help you avoid becoming a victim. Sometimes , fraud can come in an unexpected way which makes it quite hard to realize on time but when you already understand the severity of fraud and know some of easily recognizable features of a fraudulent activity, it can help you stay alert and make better decisions. You can subscribe to the newsletter of your bank where they inform you from time to time what and what not to do, read news on financial frauds and crimes, learn from past victims etc. Immerse yourself in every details of different fraudulent tactics, this keeps you one step ahead and let you know what you have to do in case there’s a fraudulent attempt on your finances.In the end, you know what they say about prevention is better than cure? It is also applicable to your finances. As much as we want a cure to end these fraudulent activities, we should be fully involved in protecting ourselves first. Learn and do all you can to protect your finances, follow the necessary steps duly and don’t risk losing your hard earned money to total strangers.
