Bank News & Financial Literacy
International Fraud Awareness Week
Nov 8, 2024
International Fraud Awareness Week is a global event held every November with the purpose to raise awareness of fraud. Fraud, defined as intentionally deceiving someone for unlawful gain, is a widespread issue that continues to grow more sophisticated each year. By enhancing our understanding and awareness, we can effectively safeguard ourselves and our communities from falling victim to fraudulent activities.
The following are the top five common fraud tactics to watch out for, as reported by Experian.
- Imposter Scams involve fraudsters pretending to be someone else to get you to share personal information or send them money. They can contact you through phone calls, texts, or emails. Examples include grandparent scams, romance scams, and robocall scams. Be cautious of sharing personal information or clicking on suspicious links from unknown sources. Always verify the identity of someone asking for information, even if they claim to be from a trusted company or government agency. Its best to contact the company or agency directly to confirm their legitimacy.
- Online Shopping Scams include sites that overcharge you, fail to deliver products on time, or don't honor guarantees. Be wary of sites with very low prices or typos in their web address. Another potential red flag can be social media ads containing a countdown timer or a limited-time offer encouraging you to act fast. If you decide to buy something online, it’s best to use a payment method that offers purchase protection and can help get your money back if the seller turns out to be a scammer.
- Fake Prizes, Sweepstakes and Lotteries claim you've won a reward, then ask for personal information or payment. If you receive a message stating you’ve won a prize, sweepstake, or lottery that you don't remember entering, chances are, it's a scam. Legitimate contests and lotteries don't ask for payment to enter – and paying won't make you more likely to win. It's best to ignore any prize message if they request your personal information or payment to redeem your reward.
- Investment-related scams can be costly, with losses totaling over $4.6 billion in 2023. These “get rich quick” scams may involve paying for tips, training, or courses that promise to make money, or investing with someone who turns out to be a fraudster. These investments might include cryptocurrency, stocks, bonds, real estate, or another asset where you’ll end up paying for “expert” advice or training but never receive any value in return. Additionally, you should avoid offers that promise guaranteed returns (legitimate investments generally have some level of risk). If you're interested in an investment opportunity, check out the tools provided by the Financial Industry Regulatory Authority.
- Fraudulent Business and Job Opportunities include work-from-home scams, franchise opportunities, pyramid schemes, and fake job postings. These scammers may present a job application as way of obtaining your personal information. You might also be asked to pay an application fee or money for supplies or placement services. If you're looking for a job or business opportunity online, be sure to do your research. Check for any complaints or negative reviews about the person or company offering the opportunity. If something seems fishy, trust your gut and move on. If someone promises you a job in exchange for payment, it's likely a scam.
Fraud Awareness Week is an important reminder to stay informed and take preventive measures in our daily lives. By using caution, you can protect yourself from falling victim to fraud.