With the growing of the digital age, so too has the proliferation of financial scams. Stats show that the amount of data available online is doubling every two years! With info available at the touch of a button, ensuring your financial safety requires vigilance and awareness. Below, are outlined common scams and the actionable advice to help protect yourself from financial fraud.
Fake Account Security Calls
Scammers may contact you, pretending to be from your bank, and claim that your account has been compromised. These impostors often use sophisticated methods to obtain personal details and create a sense of urgency, urging you to transfer funds to a ‘safe’ account.
Recommended Action: Hang up immediately, block the number, and report the incident to your bank. Remember, legitimate banks will never request such actions via phone.
Investment Scams
Fraudsters may claim to offer superior investment opportunities that promise extraordinary returns. These pitches are designed to lure you into making quick decisions.
Recommended Action: Disconnect the call, block the number and report the incident to your bank. Always consult with a certified financial adviser before considering any new investment opportunities.
Unsolicited Requests for Personal Information
Be cautious of unexpected calls, emails, or messages requesting personal information. These can be phishing attempts designed to steal your identity.
Recommended Action: Delete suspicious emails and block unknown numbers. Do not provide any personal details.
Risks of Sharing Personal Photos Online
Posting personal photos on social media can expose you to identity theft. Scammers can use images to extract biometric data, such as facial recognition or fingerprints, which can be used fraudulently.
Recommended Action: Consider limiting and adapting the type of images and data you post on your social media platforms to minimize risks.
Unsafe Browsing Practices
Visiting unsecured websites can compromise your personal data, which may be shared with marketing companies and potentially the dark web.
Recommended Action: Exercise caution when browsing online. Use secure, reputable websites and consider employing a virtual private network (VPN) for added security.
Credit Card Fraud
Beware of using your credit card at toll gates or other potentially insecure locations. Scammers may use card skimmers or tap-and-go technology to steal your card information.
Recommended Action: Keep your card in sight, use chip-and-pin transactions instead of tap-and-go (as micro-chip signals can be intercepted), and consider using cash or a non-chip card for transactions in potentially risky environments.
Public Wi-Fi Risks
Avoid conducting financial transactions over public Wi-Fi networks, as these can be insecure and expose your information to others on the same network.
Recommended Action: Use a secure, private network for financial activities, and consider using a VPN when connecting to public Wi-Fi.
Bluetooth Security
Leaving Bluetooth enabled on your phone can make it vulnerable to unauthorized access.
Recommended Action: Turn off Bluetooth when it is not in use to protect your data from potential breaches.
Online Purchases
When shopping online, be cautious about whom you share your credit card details with. Fraudulent sites can quickly misuse your card information.
Recommended Action: Only purchase from trusted, reputable sources. If in doubt, seek alternative payment methods or contact the seller directly. Do background checks on well know review sites.
Safeguarding Your OTP
Your One-Time Password (OTP) should never be shared with anyone, even if they claim to be from your bank or service provider. Scammers may use various tactics to obtain your OTP and access your accounts.
Recommended Action: Never disclose your OTP to anyone. Contact your bank immediately if you suspect your OTP has been compromised.
Recommended Action: Never disclose your OTP to anyone. Contact your bank immediately if you suspect your OTP has been compromised.
Sim Swop
Fraudsters contact your mobile service provider, pretending to be you and ask for a transfer of your existing cellphone number to a new SIM card, or they ask that your number be moved to another mobile service provider. By gaining control of your number, your messages are rerouted to the fraudster, these include One Time Pins (OTPs) and other personal messages. Fraudsters may use this and other compromised information to fraudulently take over your banking profile or changing instructions such as card delivery address.
Recommended Action: If you lose cellphone connectivity or receive an SMS indicating that you have requested a SIM swop, which you did not, do NOT ignore the message. Contact your service provider AND our Fraud Line. NEVER share your OTP with anyone to authorise any activity that you did not initiate.
In Conclusion
When in doubt, always reach out to your bank’s fraud hotline to report suspicious activity or seek guidance, if you feel your information’s may have been breached, rather instruct them to block the bank account. May this guidance assist you in maintaining financial security in an increasingly complex digital landscape.
By Mauro Armellini
Financial Advisor & Director at Arena Insurance Consultants
Tel: Tel: +2711 501 3393
Website: arenainsurance.co.za
Mauro has an abundant wealth of knowledge in both short-term, long-term and investment sectors. After being in the industry since 1984, he is fluent in Wealth Management on a global platform. For tailored financial advice feel free to contact him on mauro@arenainsurance.co.za
Image credit: Sora Shimazaki
