Tips to Protecting Yourself from Financial Scams

In the age of the internet, and now AI, detecting financial scams can be really difficult, if not nearly impossible. Scams are everywhere and can be a gateway to a higher level of fraud: personal identity theft. It's never fun to sit on the phone for hours just to prove it’s you. Or worse, try to recoup all your hard-earned money, only to fall short. So here are a few tips I'd recommend to help keep your financial information safe:

• Monitor your credit card and bank statements regularly and keep your receipts. The earlier you catch an error, the easier it will be to fix. Nearly 1 in 5 credit card statements has errors, and it's almost never in our favor. 1 in 5! When I first learned that, I could hardly believe it either. It's important to know that as a consumer, you have the right to an investigation into any fraudulent charge. And while a charge is being reviewed, credit card companies cannot:

  • Report your payment as late to a credit reporting company if you paid the undisputed amount on time.

  • Charge you interest on the disputed charge while it is being investigated.

  • Require you to pay the disputed charge while they look into the issue.

• Monitor your credit report annually. The three major credit bureaus (Equifax, Experian, and TransUnion) are legally required to give you a free report every year. It’s up to you to review and correct any mistakes. I strongly suggest reviewing your credit report at least annually or at the bare minimum a couple months before a major purchase that you intend to finance.

• Take your time and get a second opinion. Financial scams often pressure you to make a quick decision. If it's a legitimate request, there’s usually more time available. Still unsure? Always get a second opinion.

• Never give out your Social Security number. Even legitimate companies may ask for it to verify your identity. Decline. Decline. Decline! Politely request an alternative method.

• Use incognito mode when browsing, shopping, or accessing sensitive information online. Private browsing automatically deletes your history, cookies, and site data when you close the window. Here are the key-board short-cuts for going incognito:

  • Mac: Command + Shift + N

  • Windows: Ctrl + Shift + N

• Be cautious when connecting to public Wi-Fi. A lot of personal data can be collected just by using public browsers (especially on publicly available Wi-Fi). If possible, use a VPN, a personal hotspot, and/or go in incognito mode.

• Request a new credit card every couple of years, especially if you travel internationally. Personally, I like to do this every two years at minimum so that any old cards (even if their data was compromised) become useless.

• Sign up for the Do Not Call List. If spam calls constantly clog up your phone, you can register for free at www.donotcall.gov to help minimize them.

• Stay informed. You don’t have to be an expert, but as technology evolves, scams are becoming more and more sophisticated. Talk to your friends, read an article every now and then, and stay informed.

Of course, there are many strategies out there, but hopefully these tips help get you started. Putting just a few of these strategies into practice can go a long way in keeping you protected. And don’t just take it from me: like Benjamin Franklin said, “An ounce of prevention is worth a pound of cure.”