What to do if You’ve Been a Victim of Fraud & How to Protect Your Financial Accounts
Recent estimates suggest almost half (47%) of Americans experienced financial identity theft in 2020. The reason why so many Americans are targeted in financial attacks is due to criminals finding it easier than ever to commit financial crimes without getting caught.
That’s not good news for consumers.
What’s more, there’s very little information out there about how victims of financial fraud should act to protect their financial accounts moving forward. In some situations, victims of fraud find themselves in a huge amount of unjustified debt with few financial options. If you’ve found yourself in this precarious position, then we want to help. Learn more about what to do if you get scammed and how to protect your finances during and after fraud below.
Recognizing the Signs and Symptoms of Financial Fraud
If the signs of financial fraud were obvious, then very few people would fall for financial scams. The truth is, though, most people wouldn’t recognize the signs of financial fraud even if they were happening to them. With that in mind, it’s important to empower yourself with the knowledge about what a financial scam or fraud would look and feel like. Here are some of the most important warning signs you need to know about:
• Unexplained charges on your bank statement
• Receiving mail about credit cards or offers you never applied for
• Inquiries about your financial data from unknown sources
• Suspicious activity on your credit card accounts
• Unexplained app purchases
• Receiving bills for services you’ve never purchased
• Losing service or access to your accounts
• Calls from debt collectors
• Getting told you’ve already filed your taxes when you haven’t
• Getting informed that there’s a warrant out for your arrest
Have you noticed some of the above signs? Are you worried that you might be currently involved in a financial scam or that you’re getting defrauded? Don’t fret. Instead, learn more about what to do below.
What to Do If You Get Scammed
Once you start to realize that you’ve been defrauded, your next steps are crucial. Making a misstep could tip off the fraudster that you’ve caught onto the scam, which could lead to them ghosting you. This would only make getting justice and compensation harder than it needs to be. Instead of letting the scammer know that you’ve caught on, here’s a step-by-step guide on what to do:
• File a police report
• Report the scam to the FTC
• Start collecting documentation and proof of your claims
• Start recording phone calls
• Contact your bank and financial institutions
Once you’ve taken the above steps, you might find some form of relief. In some cases, your financial institution will reimburse some of your losses or release you from a debt liability. At other times, you’ll get left holding a huge chunk of debt that you didn’t take out.
10 Ways to Protect Your Financial Accounts During or After Fraud
As investigations about your financial situation are underway, you may no longer have access to the accounts and services you’ve used in the past. Not only is this frustrating but it could cause more financial hardship for you and your family, too. Even worse, other financial institutions may be wary about allowing you to open an account with them due to your ongoing situation.
With all those pressures and hardships going on, you need to take action to protect your financial accounts from further damage. Get informed on our top ten ways to stay financially safe and secure during and after fraud below.
1. Stop Making Payments and Using Your ‘Normal’ Accounts
If you’ve identified potential fraud or suspicious activity on one or more of your accounts, then the first thing you should do is to stop using that account or stop making payments to the fraudulent business. This simple but often overlooked step will help prevent you from losing any more money in the scam.
If you’ve already contacted your financial institution, then they may have already frozen your account or card. If that’s the case, then you may not be able to access your account until you get a new card in person or in the mail.
2. Change Your Online Account Details
In some cases, your account may have gotten compromised as a result of your online account details. For that reason, it’s important to change all your passwords. Do your best to create unique passwords that aren’t the same as other online accounts you have.
3. Secure Your Online Accounts Where Possible
Does your account offer extra security measures like security questions or multi-factor authentication methods? If so, then you should definitely sign up for these protective steps. While logging into your accounts will take a bit more work, it will also keep out anyone attempting to hack into your account.
4. Get New Physical Financial Cards
Your financial intuition may have prompted you to get a new physical financial card, but you should definitely take this step if they didn’t. A new physical card will come with new numbers, expiration dates, and codes. Any hacker who has your previous card details won’t be able to use them any further.
5. Make a New Monitoring Goal
Next, you should set yourself up with a new monitoring goal. You should always check all your bank accounts on a regular basis. At least once a week, go through your bank’s transactions. Make sure that you made each transaction. Verify the amount, date, and biller. At the first sign of something suspicious, contact the financial institution. Knowing when to review your finances can help you avoid the worst consequences of financial fraud.
6. Schedule Credit Report Check-Ups
On top of regularly monitoring your accounts, you’ll also want to schedule some regular credit report checkups, too. Monitoring your credit report is important because it will keep you informed about any suspicious activity like new accounts getting opened. Consider using a service like CreditKarma to keep track of your credit score on a regular basis.
7. Be Cautious About Future Online Purchases
In many cases, attempting to put your debit or credit card details into a payment system can open you up to an attack. That’s because these online platforms are often vulnerable to attacks of their own. To avoid opening yourself up to this kind of vulnerability, be cautious about online purchases. Only make online purchases on trusted platforms. If possible, then it might even be best to use prepaid gift cards to make online payments. Doing so will keep your real financial details entirely private.
8. Know the Physical Signs of Financial Fraud
How often do you pay with a debit or credit card at a store, ATM, or gas pump? Did you know that fraudsters can place skimmers or shimmers on these commonly used devices that steal all your card’s details? Once in the hands of hackers, they can use this information to make purchases on your account.
Keep an eye out for suspicious physical signs of these devices. If you do see any red flags, then consider going somewhere else or using a different scanner.
9. Know the Signs of Online Financial Scams
It’s also advised that you stay updated on the latest online financial scams. Always practice the best online safety tips like creating secure passwords, only visiting trusted sights, and never sharing your financial details with untrusted sources. Once you’re aware of what to avoid, you’ll be less likely to get targeted by scammers in the future.
10. Set Up Financial Fraud Protection for the Future
One of the best ways to protect yourself from identity theft moving forward is to set up financial fraud protection. These types of services help you monitor your accounts. If any suspicious activity gets caught by the service provider, then they’ll usually freeze your accounts right away and notify you. By doing so, you are protecting your financial accounts from suffering significant damage.
Moving Forward After Fraud in 2022
Have you recognized the signs of financial fraud on one or more of your accounts? If so, then your next steps are very important. There are specific things that you should do to protect your financial accounts. Now that you’re informed about the next steps you should take, act now to preserve your finances and protect yourself from further consequences as a result of the fraudulent activity.
Depending on the severity of the attack and how damaged your finances are, it might be necessary for you to take significant action. You may end up needing to file a police report. You could end up needing to close accounts or open entirely new ones. In some situations, it may be in your best interests to speak with a debt expert or attorney to ensure you make the best possible decisions moving forward.
If you have been a victim of fraud and would like to speak with an expert, then click here to get in touch with our debt professionals now. We’ll help you navigate your situation and move forward after fraud in 2022.
