Here’s an unsettling thought: According to Federal Trade Commission data, consumers lost more than $10 billion to fraud in 2023.
This is a 14% increase over reported losses in 2022. Much of this fraud takes place online, or is at least facilitated by the Internet. With fraudsters, hackers, and various criminals using new technology and innovating novel ways to scam people out of their money, how can you protect yourself?
Why Is Fraud Such a Big Issue?
Fraudsters have always been around. What’s different now is they have access to a much wider range of people they can scam. Fake products, false websites, malware, data breaches, social media scams and account hacks are just some of the tools they employ to achieve their goals.
Many of these online scams are not the work of petty thieves, but organized and sophisticated criminal enterprises. However, they find it much harder to succeed if their targets are paying attention. Being mindful and staying alert can significantly reduce your chances of falling victim to online fraud.
7 Tips To Avoid Fraud
Here are seven actions you can take to help keep yourself safe online:
1. Use Strong Passwords
Many of us are guilty of using the same password for too long, or across multiple accounts. This is unwise. You can better protect yourself with unique passwords for every online account. And the more complex your password, the safer it is. For example, a password that’s over 10 characters long and uses upper and lowercase letters, numbers, and special symbols is difficult to hack. If you think you might struggle to remember passwords like these, consider using a password manager to store and organize your passwords securely.
2. Be Cautious With Emails and Links
Online fraudsters often run phishing scams with emails that appear legitimate, but lead to malicious sites. You may receive an email that has the name, logo, and branding of your bank, telecommunications provider, or another service you use. That email might contain a link or attachment; don’t click it. Take a minute to double-check the email address. Is it the exact same address for other official emails you’ve received from that company? And remember, businesses typically won’t ask for sensitive information, such as passwords or Social Security numbers, via email.
3. Enable Two-Factor Authentication
Two-factor authentication is a way to add an extra layer of security to your accounts. When entering your password, a site, app, or service may text you a code. Entering the code then grants you access to your account. This way, even if someone obtains your password, they can’t get your information without the code sent to your phone.
4. Update Your Apps and Devices
Because hackers are always fine-tuning their technology and tactics, out-of-date software is vulnerable. It’s wise to update your devices, operating systems, and applications whenever you receive a prompt to do so.
5. Regularly Check Your Financial Accounts and Statements
It’s good practice to review your bank and credit card statements routinely. Check for charges you don’t recognize and don’t overlook small amounts; scammers sometimes start with low-value transactions to test the waters.
6. Be Careful on Public Wi-Fi Networks
Whenever you’re on public Wi-Fi, refrain from conducting financial transactions or entering sensitive information. Consider using a service that provides you with a virtual private network (VPN). VPNs encrypt your internet traffic, making it harder for others to intercept your data.
7. Stick to Secure Payment Methods
Only pay through secure payment methods such as credit cards or trusted payment gateways (e.g., PayPal, Apple Pay). When buying online, these methods are safer than direct bank transfers or wiring money. Credit cards are perhaps safest, as they offer added fraud protection, such as the ability to dispute criminal or inaccurate charges.