5 Fraud Prevention Tips to Help Keep Your Finances Safe

Table of Contents

1. Protect Yourself by Staying Alert

2. Be Wary of Scam Calls and Texts

3. Verify Phone Numbers Before Calling
4. Stay Safe from Seasonal Fraud Attempts
5. Avoid Falling Victim to the Grandparent Scam
6. Beware of Financial Institution Impersonation Scams

At Addition Financial, we’re committed to keeping our members safe in an increasingly digital world. Fraud is evolving, and so should your awareness. By staying informed on the latest scams and prevention techniques, you can safeguard your finances and personal information. Here are five key fraud prevention tips to help you stay protected. 

Protect Yourself by Staying Alert

Fraud detection and prevention is an ongoing effort, and it starts by understanding strategies and tactics used by attackers. Staying updated about the most common types of fraud schemes and potential risks is a great way to protect yourself from financial loss. Knowing how fraudsters operate, you can better identify and avoid suspicious activity.

#1 Be Wary of Scam Calls and Texts

Scam calls aren't new, but unfortunately, they are becoming more and more sophisticated. This makes it harder than ever to tell them apart from legitimate calls. That’s why you must be wary of unknown numbers, even if the caller ID shows a name or company you know. Real businesses will not ask you for personal or financial information over the phone.

When it comes to communicating with Addition Financial, please note that we will NEVER call or text you to ask for your Digital Banking login credentials, debit or credit card number, PIN, CVV code, or account number. We will only ask for a verification code if we are following up on a support request you initiated or if you called us directly.

If the caller is truly from your financial institution, they will already have your account information and will not ask you to provide personal details. Addition Financial nor any other financial institution will ever ask you to transfer money, purchase cryptocurrency, or buy gift cards. If you receive a call that makes you doubt the caller's intentions, hang up and verify the company's contact information.

#2 Verify Phone Numbers Before Calling

Before you contact an organization, be mindful of where you're finding their contact information. These days, cybercriminals have found ways to manipulate Google search results to display fake phone numbers for companies. Once you call, scammers may attempt to get personal details or trick you into giving them money or sensitive information. 

Here are some tips to protect yourself:

• Verify the Website: Ensure you are on the organization’s official website before making any purchases or using their services. Please confirm you’re using the correct URL without any extra characters (e.g., AdditionFi.com instead of AdditionsFi.com).
• Check the Phone Number: Confirm that the phone number listed matches the one on the organization’s official website.
• Report Scams: Use Google’s Report services to report any fake listings, ads, or disinformation.

It's important to approach any information online with a discerning eye to make sure you're not falling into a trap.

#3 Stay Safe from Seasonal Fraud Attempts

As the seasons change, so do the tactics of scammers aiming to exploit unsuspecting individuals. Be vigilant during holidays and special occasions, as these times often come with a rise in fraudulent activities. Scammers may impersonate reputable companies offering tempting deals or create fake charity campaigns leveraging emotions tied to the season.

To protect yourself, start by verifying the legitimacy of organizations before contributing or sharing any sensitive data. Always prioritize your security and be cautious of any unusual or unsolicited requests during these times.

During peak scam seasons, there are some key practices that will help keep you safe. When it comes to physical documents, be sure to shred any sensitive paperwork and retrieve mail or packages promptly. Always be mindful of where you're inputting any personal details online, and never give out personal information in response to unsolicited emails or phone calls. You should regularly check your credit report for unfamiliar accounts or activities.

#4 Avoid Falling Victim to the Grandparent Scam

For seniors, the grandparent scam uses their love and concern for family members for financial exploitation. Scammers pretend to be a grandchild or a loved one who needs help. They say they need money right away, taking advantage of the grandparents.

To protect yourself, consider the following:

• Confirm the Caller’s Identity: If someone calls claiming to be your grandchild or a relative in an emergency, ask questions only they would know the answers to.
• Call Them Back: Do not trust the number provided by the caller. Instead, call your relative back using a number you already have.
• Be Cautious with Money Requests: Urgent requests for money, especially through cash, gift cards, or wire transfers, are a major red flag.
• Don’t Act Quickly: Scammers often pressure you to act fast. Take your time to think things through and contact law enforcement or another family member if the situation feels suspicious.
• Check with Family Members: Reach out to other relatives to verify the situation.

Remember, never share personal or financial information over the phone with strangers. It's important to stay calm and make sure you're speaking with someone you can trust.

#5 Beware of Financial Institution Impersonation Scams

If you receive a message from someone claiming to be from your financial institution, proceed with caution. Scammers want to trick you into giving away sensitive information, including account numbers, passwords, or Social Security numbers, which can lead to account takeover fraud if it falls into the wrong hands.

The message may ask if you recently made a purchase or state that there is unauthorized activity on your account. If you reply "no," you will likely receive a follow-up phone call from a scammer pretending to be a representative from your bank or credit union. The call may appear to come from their phone number. The scammer, posing as a fraud department representative, will reiterate the claim of unauthorized activity and then ask for sensitive information to gain access to your account.

It's crucial that you don't give your personal information, staying wary of any urgent requests. Additionally, never click on any links in a text message from someone you do not recognize. If you receive this kind of request, it's smart to contact your financial institution directly using the contact information found on your account statements or the official website. 

Always remember that real financial institutions don't reach out to you out of the blue. You'll never be asked to transfer funds, complete a cash withdrawal, or place your debit card in the mailbox for pickup.

We're Here to Help

At Addition Financial, your security is our priority. Stay informed, stay cautious, and take proactive steps to protect yourself. Visit our Security Center to learn more and keep your finances safe.