How to stave off Financial Fraud and Financial Crimes?
Since the start of time, there has always been some form of financial fraud. In ancient times, it could be seen as a good luck charm spurred upon by their ancestors to offer positive outcomes for important events in people’s lives. However, financial fraud and financial crimes have changed drastically over the last decade or so and they have grown more subtle and cerebral.
What is Financial Fraud?
Financial fraud involves the act of stealing someone’s money or other assets. For example, financial credit card scams are on the rise and have become common in modern times. The scammers get a hold of people’s bank information through various means and then use their knowledge to steal from them without being discovered. This is called ‘identity theft’ and it is a crime gaining prevalence.
According to a study by Checkpoint, 1 in 7 people get their identity stolen every year. Some of these cases are thrill-based, while others use personal information to buy products online or even steal money from their bank accounts! Identity theft is not only dangerous but can cause serious damage if left unchecked.
What is Financial Crime?
Financial crimes are evolving, but they all have the same purpose: make money or obtain personal possessions. Financial crimes include fraud, theft, embezzlement of funds, corruption, and much more.
The owners can prosecute financial crimes involving a company or organization if they discover such wrongdoings. There are many ways to determine whether or not a company is committing financial crimes; for example, following the trail of their accounts. If there seem to be shady dealings, then the owners of that particular organization should investigate further before more money is lost.
Financial crimes involving individuals involve some form of theft. The most common theft you hear about is theft by deception. This means that someone has been tricked into giving away their money or other valuable possessions to another person. It could be through various methods, such as false advertising, internet scams, etc.
Financial crimes aren’t always identified at first sight. However, they can be identified by looking at someone’s spending habits, credit history, and more. Financial crimes can be stopped if people keep an eye on their finances, their loved ones, and their online spending habits.
How to prevent Financial Fraud?
There are many ways to prevent financial fraud.
- Protecting your personal information: make sure you do not click on spam emails, be aware of internet scams to stop yourself from becoming a victim of this ever-growing crime.
- Also, do not give out your personal details to anyone over the phone.
- If you are unsure about a website then go through their reviews on websites like Yelp or Google Review where people can rate businesses online and write honest good/bad feedbacks about them
Protecting Your Personal Information: Identity Protection and Internet Security Tips
There is a lot of personal information being passed around on the internet these days, such as email addresses, credit card details, or even bank account numbers! While you are online, someone else might be trying to steal your information. Identifying this kind of fraud and protecting your personal information is easy once you know what steps to take. All you have to do is pay attention.
- Beware of phishing emails – this is a form of scam used by fraudsters to get their hands on people’s personal information. This can lead to identity theft and financial fraud if not identified. Phishing scams usually come through email spoofing or email hacking. According to the Federal Trade Commission, “Almost all phishing emails will carry a link to a webpage that looks genuine, so be sure you check the URL of any site you visit.”
- Protect your passwords – You must make your password hard for others to guess but easy for yourself to remember. Never give out your password to anyone, even your best friend! If you do need to give out your password, make sure to change it immediately afterward.
- Carry cash – It is always good to have some cash on hand in case of emergencies but be wary of using credit cards or debit cards for everyday purchases; they can easily be stolen from crowded places. When using a debit card, make sure to shield your pin at all times, especially in crowded places while making a purchase.
How to prevent Financial Crimes?
It is always important to be aware of your surroundings and the people you are with. Because financial crimes usually involve getting close to someone, it’s a good idea to make sure that they cannot take advantage of you or your money.
If it seems like a deal is too good to be true, it probably is. Research the company and make sure that what they’re offering you and/or selling is genuine before making any financial decisions in an emotional spur.
Also, watch out for people who try to convince you to send money or transfer something valuable online to receive a big amount of profit in return. Similarly, whenever someone asks you for your personal information, especially if they are a stranger, kindly decline.
Whenever someone you don’t know asks for your email or social media log-in to do something for you (such as help set up an account), make sure to keep your private login information safe and confidential from them. An additional measure is to utilize 2FA- Two Factor Authentication.
There’s nothing wrong with taking precautions when it comes to finances and the internet. It’s important to protect yourself and others from financial crimes to have a safe and secure life online.
This article has discussed the different ways to prevent oneself from financial fraud and crimes. Some measures like protecting your personal information, making sure you do not click on spam emails, and being aware of internet scams, can help prevent you from being a victim.
The article also provides tips for avoiding situations where people become victims of fraud, which are generally due to having their identity stolen or through online scams. There are various ways to prevent such a crime by protecting passwords, carrying cash, and ensuring that the person you’re dealing with is someone you know well or have dealt with in the past.