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The Best Practices To Ensure Your Safety Against Financial Fraud

Financial fraud occurs when someone steals your money or else hurts your financial health through deceitful, dishonest, or unlawful tactics. This can be accomplished through a variety of means, including identity theft and investment fraud. 

Fraud and financial crimes are types of theft/larceny that occur when a person or entity steals or misappropriates money or property with the aim of profiting from it. These crimes are distinguished from normal theft or robbery by the use of deception, subterfuge, or the misuse of a position of trust. Fraud and financial crimes can take various shapes in today’s complicated economy. The majority of victim compensation programs do not compensate victims for money lost due to fraud or fraudulent schemes.

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You must examine your state’s legislation regarding victim compensation. To recoup lost funds, civil justice may be the only legal alternative. Regardless of the sort of financial fraud, it is critical to report the offenses to the right agencies and law enforcement as soon as feasible. Fraudulent charges should be challenged or canceled as soon as they are identified. Furthermore, victims should gather crime-related paperwork, such as bank statements, credit reports, and tax forms from current and past years, and continue to file important information throughout the reporting process.

Criminals are incredibly inventive in creating techniques to perpetrate such crimes, and they are heavily influenced by the economy, financial markets, and anti-money laundering (AML)/counter-terrorism financing (CTF) laws of the countries in which they operate. Many are increasingly taking advantage of the complicated nature of financial services, making identification and prevention even more difficult. Furthermore, large-scale syndicates, such as transnational organized crime groups, take advantage of disparities in the country’s criminal laws.

Only about 13% of scam victims actually report the scam. It's discovered that in 2020 Australians lost over $634 million

JOURNAL OF BANKING, FINANCE & INSURANCE

If you’re someone who wants to protect your financial data, then you’re definitely at the right place. We can give you the best practices in identifying red flags as well as help you in recovering your stolen money from scammers!

Table of Contents

Types of Financial Fraud & How To Avoid Each

100 dollar and mask

Investment Fraud

Investment fraud occurs when someone attempts to dupe you into investing money. They may wish for you to invest in stocks, bonds, notes, commodities, cash, or even real estate. 

A fraudster may deceive you or provide false information regarding a legitimate investment. Or they may invent a phony investment offer. Investment scammers may pose as telemarketers or financial counselors. They appear to be intelligent, sociable, and charming. They can inform you that an investment opportunity is critical. They aim to gain your trust in order for you to pay them money as soon as possible and without asking too many questions. Investment fraud involves selling investments or securities that contain inaccurate or misleading information. It could be false promises, withheld information, or insider trade recommendations.

stock market

Identity Theft

Identity theft is interpreted as the unlawful use of another’s personally identifying information (such as a Social Security Number) to perform other crimes such as credit card fraud. 

Someone obtains your personal financial information, such as your credit card number or bank account number, and uses it to make unauthorized withdrawals from your account. People will sometimes use the information to open credit or bank accounts, leaving the victim accountable for all expenses. Identity theft can result in a ruined credit rating, bounced checks/denied payments, and collection agencies pursuing you.

Tax Fraud

When an individual or corporate entity willfully and purposefully falsifies facts on a tax return in order to reduce the amount of tax liability, this is referred to as tax fraud. 

Tax fraud is defined as falsifying a tax return in order to avoid paying the whole tax due. Claiming false deductions, claiming personal spending as business expenses, using a false Social Security number, and failing to disclose income are all examples of tax fraud. A brief overview of tax evasion is the crime of failing to pay one’s legally necessary portion of federal or state taxes, which is punishable by asset seizure or imprisonment.

Charity Fraud

Charity fraud schemes solicit donations for groups that undertake little or no work; instead, the funds go to the originator of the bogus charity. While these frauds can occur at any time, they are most common following high-profile disasters. 

Criminals frequently utilize disasters to take advantage of you and those who wish to help. Charity fraud scams can take numerous forms, including emails, social media posts, crowdfunding sites, cold calls, and so forth. When donating to charitable causes, always proceed with care and thorough study. Following a natural catastrophe or other calamities, dishonest contractors and other con artists may perpetuate insurance fraud, re-victimizing those who have had their homes or businesses ruined. These con artists will sometimes pretend to be government officials when they are not. Do your homework before selecting a contractor if you require post-disaster repairs.

Mortgage Fraud

A service provider may open a mortgage or loan using your or fake information. In another scenario, lenders may use false information, dishonest practices, and other high-pressure sales tactics to market mortgages or loans. Explanation of several criminal tactics using the misrepresentation or misstatement of mortgage documents in order to deceive another party, such as a lender or a homeowner.

mortgage

5 Tips to Avoid Financial Fraud Worldwide

When it comes to financial fraud, you can never be too careful. Your fate is intertwined with your User IDs, passwords, and PIN numbers. 

You can use this information to collect funds and assets from your banks and investments. Maintain the confidentiality and security of all such information, and regularly update your passwords and PIN codes. Don’t give anyone your personal information. Banks and brokerages, as well as the police, would never contact you to obtain your passwords and PIN codes. There are numerous ways through which scammers can get you. However, by following just a few simple tips and tricks, you can avoid falling prey to the hand of these scammers.

Scammers see opportunities to target us in these uncertain times. We can guide and support you, contact us now!

money roll

Protect your personal information

Maintain the security software on your computer and avoid entering personal information (such as financial information and login credentials) into public computers, which may contain software that records passwords or other information you type. 

Look for HTTPS at the beginning of a URL on a website where you will be logging in or transferring data, such as when banking or ordering products online. If you’re getting rid of old bank statements or other documents that contain sensitive information like account numbers, social security numbers, personal identification numbers, and so on, shred everything first. Numbers, etc., should all be shredded before disposal.

Your fate is intertwined with your User IDs, passwords, and PIN numbers. This information can be used to collect funds and assets from your banks and investments. Maintain the secrecy and security of all such information, and keep your passwords and PIN codes up to date. Don’t give anyone your personal information. Banks and brokerages, as well as the police, would never contact you to obtain your passwords and PIN codes. Regularly empty your mailbox and consider purchasing a mailbox lock. Consider dropping off bill payments and checks at the post office or in a safe mailbox instead of mailing them. 

lock hacking

These are minor adjustments that can have a significant influence on your personal security. Because it allows identity thieves access to your credit report and bank accounts, your Social Security Number is a prime target. Carry your card with you at all times. Instead, memorize your card number and store it safely at home or in a safety deposit box. On checks, never write or print your Social Security number.

Online Security

With the advent of online banking, commerce, and transactions, the internet has become a favored hunting ground for fraudsters. Common methods for obtaining information about you include fraudulent websites and bogus emails. 

Your personal internet practices can significantly reduce the chances of financial scams. Install the most recent operating system and browser, and secure your PC and mobile devices with the most recent anti-virus software. Privacy is a critical problem, particularly in the digital era. To protect your data, delete spam emails requesting personal information, and keep your anti-virus and anti-spyware software up to date. Only shop online on safe web pages. Credit card numbers, Social Security numbers, and other personal information should never be sent over email.

typing on laptop

Mobile apps have altered the way we shop and do business. Make sure you use a validated app every time you install one on your device. Download only from official playshops, such as Google Play, Windows App Store, or Apple App Store, whether it’s a financial app or a new game. Mobile apps have altered the way we shop and do business. Make sure you use a validated app every time you install one on your device. Download only from official playshops, such as Google Play, Windows App Store, or Apple App Store, whether it’s a financial app or a new game.

Everyone wants their payments to be secure, but how many of you pay attention to the security software, web browser, and operating system on your smartphone and computer? To avoid online mishaps, keep your PC/laptop and smartphone security up to date. Create strong passwords that include a mix of special characters, letters, digits, and upper and lowercase letters. Remember to update your passwords on a frequent basis.

Be careful When Transferring Money.

paying in counter

Always pay with a credit card in front of your eyes. Make certain that the POS machine is authentic. There have been various reports of cards being duplicated by skimmers when the card was out of sight during the transaction. 

Don’t allow anyone to steal your hard-earned money because you were careless. Banks, as a general rule, do not send emails or text messages requesting personal information such as account and/or social security numbers. Banks will not ask you to verify account details in this way. Never send personal information by email or text, especially social security or tax ID numbers, account numbers, or login and password information.

If you must send sensitive information to your bank through email, use secure mail within the bank’s secure online banking platform. Emails that pretend to be from suppliers are also on the rise. These emails, like fake banking emails, may appear authentic but will request crucial financial information. If you receive an email requesting sensitive financial information, even if it appears to be from your bank or a supplier, call to confirm before answering.

money transfer

The most common type of fraud is impersonation. Someone or an institution may approach you claiming to work for you or represent a financial firm or the government in order to obtain money from you. Criminals may contact you via phone, email, or text message. Don’t rely on caller ID on your phone since scammers can utilize technology to make their calls appear to be from respectable businesses or organizations. Verify their identification, especially if they are requesting sensitive information or asking you to part with money. You can verify their legitimacy by contacting the relevant institution.

Don't be tempted by high returns

When it comes to your personal information, you should always be on the defense. Never provide personal information to telemarketers or react to emails purporting to be from your bank, credit card company, government agency, charity, or other groups. 

If you believe the request is genuine, you should call the corporation directly to confirm. A high return on your investment is frequently too good to be true. Most investment fraud cases involve fraudsters preying on the avarice of investors drawn to aggressive and quick profits. Investment scams involving pyramid and Ponzi schemes, unregistered investments, promissory notes, commodities, and other similar schemes frequently use large profits to entice you to make poor judgments. Know who you’re working with, and only invest with regulated intermediaries like banks, brokerages, and financial advisers. Learn more on how to protect yourself by visiting our website!

Coaching Scam

Key Takeaways!

When it comes to financial frauds, you are likely to encounter one every step of the way. However, with the world evolving and advances in technology, you can’t just stay back from the fear of encountering a scam. 

Instead, what you can do is benefit from the opportunities available to you whilst ensuring you are protected. You are all set by simply following a few security precautions and understanding the potential of being a scam and that if something appears too good to be true, it probably is!

do you need help?

A lot of those who contact us have questions and concerns about their personal and business data being compromised. We aim to arm you with the legal and technical know-how in the fight against scams. Also, we will be able to refer you to top scam recovery agencies.

Please fill up the form. Rest assured that our support team will get in touch with you

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