The following article is from the American Association of Daily Money Managers (AADMM)
Fraud takes an enormous financial, as well as emotional, toll on victims. It can destroy businesses and ruin financial lives.
According to the Insurance Information Institute,following the introduction of microchip equipped credit cards in 2015 in the United States, which make the cards difficult to counterfeit, criminals focused on new account fraud. New account fraud occurs when a thief opens a credit card or other financial account using a victim’s name and other stolen personal information. According to the Javelin study, account takeovers tripled in 2017 from 2016, and losses totaled $5.1 billion.
To assist with recognizing and avoiding fraud, the American Association of Daily Money Managers (AADMM) has developed a list of common scams that are becoming more prevalent each year. Three of these scams were discussed in my January post, How to Protect Yourself and Your Loved Ones from Three Common Types of Scams. Click here to read this post. Following is information on three additional types of scams.
That box in front of your home, your mailbox – is it safe enough to protect you from identity theft or other possible financial violations? Thieves are looking for items in that box that can provide them with information to steal your identity or monies that belong to you. This information can be found on most types of mail we all receive each day – bank statements, utility bills, credit card offers, checks or tax documents. Checks can be cashed or washed and rewritten for larger amounts.
The information found inside your mailbox is enough for a criminal to open a new credit card in your name or gain access to an existing one. Filling in any missing information is not difficult for these individuals who make a living at identity theft. Click here to learn more ways you can protect yourself.
There are several popular methods by which scam artists take advantage of internet users. Here are some common examples of internet fraud:
- Malware: software designed to disable computers and computer systems once downloaded. Often, they are disguised with familiar names.
- Internet auctions: advertised products are misrepresented, or merchandise is never delivered.
- Data breaches: sensitive personal or financial information is leaked from a secure location.
- Ransomware: A form of malware that targets network weaknesses to access the critical data and/or systems and hold it hostage. Ransomware is frequently delivered through phishing emails. In order to gain access to your files/systems, the cyber-criminal demands a “ransom” payment or order for you to regain access to your data.
There is good news! We can take steps to protect ourselves by paying close attention to how we install and use software applications and online services. For more information Click here .
Phishing is defined as an attempt to obtain financial or other confidential information from Internet users, typically by sending an email that looks as if it is from a legitimate organization, often a financial institution, but the email contains a link to a fake website that replicates the real one. Once the user has entered their information on the fake website, the scammer has the user’s information and can use it as they desire. Click here to see more strategies to keep your information safe.
Here are some additional tips and resources to prevent fraud and identity theft. Click here to download a full copy of this article.
Daily Money Managers (DMMs) can help protect their clients by acting as a first line of defense against fraud. Using their experience in financial matters to monitor and recognize suspicious activity, they help prevent their clients from falling victim to various scams. In the event that fraud is detected, DMMs can also work with clients toward resolving the issue. To find a DMM, please visit AADMM.com.
The American Association of Daily Money Managers (AADMM) is a national membership organization representing individuals and businesses in the growing profession of daily money management. These professionals provide financial services to seniors and older adults, people with disabilities, busy professionals, high net worth individuals, small businesses and others. AADMM’s mission is to support daily money management services in an ethical manner, to provide information and education to members and the public, and to develop a network of dedicated professionals. Click here to learn more about AADMM.
This blog is published to provide you with general information only, and is not intended to provide specific or comprehensive advice. Money Care, LLC encourages individuals to seek advice from competent professionals when appropriate.