How to reduce your risk of fraud

Scammers are becoming increasingly sophisticated in their use of technology to deceive unsuspecting individuals. They use AI tools to generate highly convincing phishing emails, deepfakes, voices and social media profiles to manipulate emotions and steal personal information. 

As the technology evolves, so will scammers’ attempts to use it to their advantage. That means we all need to be more vigilant with our personal information online. 

Emerging scam threats 

One important way to stay safe is by learning to recognize signs of common scams. Here are some newer threats you may not have heard of: 

• Overpayment Scams: Scammers send you a check, asking you to deposit it and send the excess funds back. This is often a counterfeit or altered check.  

• Online Banking Scams: Be cautious of anyone asking for your online banking credentials, as legitimate institutions won't request them.  

• Student Loan Scams: Be wary of companies offering quick fixes or charging fees for student loan forgiveness. The Department of Education won't contact you directly.  

• Online Shopping Scams: Scammers pretend to be legitimate online sellers, usually with a fake website or a fake ad on a legitimate shopping site. They may also post fake promotions on social media that include malicious links to steal information. 

• Cashier’s Check Fraud: These usually involve someone giving you a genuine-looking check or money order and asking you to either wire money to them or send goods in return. Check with the financial institution to verify the check before you try to cash or deposit it. 

• Phone/Text Fraud: Scammers may impersonate bank or credit union employees to trick you into sending money through the payment service Zelle.  

• Fake GoFundMe and Charity Scams: Be cautious of online fundraising campaigns or investment opportunities that seem too good to be true. 
   

Tips to avoid becoming a fraud victim 

• Boost your security: In addition to creating a strong password, enable two-factor authentication for all accounts. That way, even a hacker with your password won’t be able access your accounts without a second authentication factor, such as a code sent via text, email or authenticator app. 

• Secure your Wi-Fi: Use strong passwords for your Wi-Fi network and avoid using public Wi-Fi for sensitive activities like online banking. 

• Keep software and operating systems updated: This will allow for patches to eliminate vulnerabilities that hackers use to gain access to your information.  

• Protect your devices: Set your phone, tablet and computer to lock automatically after a short period of inactivity.  

• Back up your data: Regularly back up your important data to prevent loss.  

• Review your account recovery information: This will help you get back into your account if you are locked out, forget your password or if someone else is using it. 

• Practice Social Media Privacy: Limit personal information shared on social media and avoid using easily guessable passwords. 
   

Job Search Scams 

As more and more of the job search process takes place online, scammers are taking advantage of unsuspecting job seekers to steal their personal information. Here’s how to keep yourself safe: 

• Verify everything: Research companies independently. Scammers may use fake websites with real information and logos to fool you. They will ask for social security numbers, emails and passwords, birthdates and more. 

• Beware of red flags: Get important information in writing before accepting any jobs. This includes job duties, pay, hours and more. Don't accept checks from unknown sources that you receive in the mail. This is how thieves pass stolen checks. They may give you many reasons to deposit the check, but once you accept it for payment, you are responsible. 

• Seek advice: Talk to someone you trust before sending information online to see if they find it suspicious. Don’t leave out any details, including where you found the job. 

• Report scams: If targeted, file a complaint at ic3.gov. 
   

If you believe you have been targeted by a scammer… 

If you can’t log into your account or get notifications about activity you don’t recognize, do these things immediately: 

• Change your account password: Create a unique and strong password that is hard to guess. One way to do this is to use a passphrase. Then, sign out of that account on all devices. That way anyone who’s logged in to your account on another device will get kicked out. You may also need to change how you receive multi-factor authentication codes. 

• Check for signs your account has been compromised: Check to see if there are auto-forwarding rules in your email account that you didn’t set up. Look for messages in your sent folder that you did not send. Check your social media—or ask a friend to do so—to look for new friends you don’t recognize, messages you didn’t post or changes to your account settings. 

• Report identity theft: If you believe someone stole your personal information, report it and get a personalized recovery plan at IdentityTheft.gov. If it is related to your banking information, be sure to contact your financial institution right away. 

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