Protecting your Wealth: Steps to Prevent Fraud and Account Compromise
Imagine you are building a strong financial future, much like constructing a well-designed home. You would not leave the doors unlocked or ignore signs of wear that could weaken its structure.
The same care should apply to protecting your bank and investment accounts- small steps can prevent major financial risks. Here are key actions to safeguard your accounts from fraud and unauthorized access:
Freeze Your Credit Report. TransUnion, Equifax, and Experian- Freezing your credit is one of the most effective ways to prevent identity thieves from opening new accounts in your name. When your credit report is frozen, lenders cannot approve new credit applications unless you temporarily lift the freeze.
Here's why this is important:
Prevents fraudsters from opening credit cards or loans in your name.
Does not affect your existing accounts or credit score.
Can be easily lifted when you need to apply for credit.
To freeze your credit, contact each of the three major credit bureaus: Experian, Equifax, and TransUnion. It only takes a few minutes.
Secure Your Devices - Ensure your computer and phone have updated security software. Avoid accessing financial accounts on public Wi-Fi without a VPN. When out in public turn off your wifi and bluetooth- it is easily accessible. Keep your software up to date both on your phone and computer.
When you do log in to your financial accounts
Use Strong, Unique Passwords. Ensure your banking and investment account passwords are complex and different from other logins. Consider using a password manager to keep track securely. Passwords should be updated at least every six months. It is a pain - but a necessary step.
Enable Two-Factor Authentication (2FA). Whenever available, activate 2FA for an extra layer of security. This requires a second verification step, making it much harder for an unauthorized individual to gain access.
Keep Contact Information Updated. Ensure your bank, investment firms, and three credit bureaus have your current phone number and up-to-date email address so they can reach you in case of suspicious activity. Also, in case you need to log in or reset a password.
Set up Account Alerts. Most banks and investment platforms allow you to enable alerts for transactions, logins, or balance changes. These notifications can help you quickly detect any suspicious activity.
Be Wary of Phishing Attempts- Never click on suspicious links or provide sensitive information over email, text, or phone unless you know the source. If something seems off, like when was the last time your phone provider called you? Never! Even if it sounds legit- hang up! If it is a legit call, they will reach out again or mail you a letter. Don’t click links - hover over it first.
Avoid using a Debit Card. While debit cards may seem convenient, they pose a higher fraud risk than credit cards.
Here's why you should limit or avoid using them:
Less Fraud Protection: If a thief accesses your debit card, they can drain your bank account instantly. While banks may reimburse fraudulent transactions, it can take time to recover lost funds.
No Rewards or Purchase Protection: Unlike credit cards, most debit cards do not offer fraud protections, extended warranties, or dispute resolutions for unauthorized charges. No rewards program.
Direct Access to Your Cash: Unlike credit cards, which provide a buffer, debit card fraud means your own money is immediately at risk, not the banks.
The drawback…
If you don't have the discipline to pay off your credit card balance every month, using a credit card may be more problematic than using a debit card.
Your financial security is just as important as your financial growth. If you have questions or want to review your current safeguards, let's talk.