Academy Course #7: Fraud Prevention and Personal Security

118118 Money Team • November 27, 2024

Welcome back to the 118 118 Money Financial Fitness Academy! We’ve covered budgeting, goal-setting, and holiday planning, but there’s one crucial topic we haven’t discussed yet: protecting your money from fraud and safeguarding your personal information. Watching your finances is important, but protecting them is just as vital.

In this article, we’ll explore practical ways to enhance your security, build awareness of potential scams, and help prevent financial loss.

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Fraud Awareness and Prevention

Awareness is the first line of defence against fraud. Fraudsters often exploit common weaknesses, such as weak passwords or lack of caution, to gain access to your personal and financial information. Here are some essential tips for building fraud awareness and staying secure.

Use Two-Factor Authentication and Strong, Unique Passwords

Many financial accounts now offer two-factor authentication (2FA), which requires an extra step to verify your identity. Whenever possible, enable 2FA on all accounts to add an extra layer of security. Even if someone manages to steal your password, they won’t be able to access your account without the second factor, such as a text message code.

Choosing a strong password is equally critical. Avoid obvious choices like “password123” or “123456,” which are easy for hackers to guess. Create passwords that are at least 14 characters long and use a mix of letters, numbers, and symbols to make them more secure. A helpful trick is to use a memorable phrase and replace letters with symbols (e.g., “G00d$tuffH@ppen$”).

Using unique passwords for each account also protects you in case one password is compromised. Consider using a password manager app to generate and store strong passwords for each site, so you don’t have to memorise them. And remember, never write your passwords down where they can be found!

Avoid Sharing Personal Details with Unsolicited Callers or Emails

One common tactic used by scammers is phishing—contacting you by phone or email and pretending to be a legitimate organisation to obtain your personal information. Be wary of unsolicited callers or emails that ask for personal details, such as your date of birth, address, or bank account information.

Legitimate companies will rarely ask for sensitive information via email or phone, so if you’re uncertain, hang up and contact the company directly using their official contact details. A few minutes of caution can prevent a significant financial loss.

Protecting Financial Information

Keeping your financial information secure requires vigilance and a few straightforward practises. Let’s look at some key steps to ensure your information stays safe.

Shred Sensitive Documents

Physical documents containing personal information, like bank statements or medical bills, can be valuable to identity thieves. Before discarding these documents, use a shredder to destroy any sensitive information. It’s a simple step but highly effective in preventing thieves from piecing together your identity from discarded documents.

Monitor Accounts Regularly for Unauthorised Transactions

Regularly monitoring your bank and credit card accounts is essential to detect unauthorised transactions quickly. Check your accounts for any unfamiliar charges or suspicious activity and report any issues to your financial institution right away. The sooner you catch unauthorised transactions, the easier it is to prevent further loss and get your money back.

Be Cautious of Unknown Links and Poor Grammar

Fraudsters often create fake websites and emails that look almost identical to legitimate ones. However, there are often clues that can alert you to a potential scam. Look for poor grammar or misspellings in emails—professional companies rarely make these errors, and it’s often a sign of a phishing attempt.

Similarly, be cautious when clicking on unknown links, especially if you’re unsure of the sender. When in doubt, hover over the link to check the URL, and only click if it’s from a trusted source. A few seconds of verification can help prevent malicious software or attempts to steal your login information.

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Secure Your Online Activity

As more of our financial lives move online, securing your internet activity is crucial. Here are a few effective ways to stay safe online, especially when using public networks.

Use a VPN on Public Wi-Fi

Public Wi-Fi networks, like those in coffee shops or airports, are convenient but notoriously insecure. Hackers can intercept data on public networks, allowing them to steal sensitive information, including login credentials. Using a Virtual Private Network (VPN) when accessing public Wi-Fi creates a secure, encrypted connection that hides your online activity from prying eyes. Many VPN services are affordable, and some are even free, providing a simple but essential layer of security.

Use a VPN Even in Private Spaces for Added Protection

While VPNs are particularly useful on public networks, they also add a layer of security at home or in other private spaces. By encrypting your internet connection, a VPN can make it harder for cybercriminals to access your browsing activity, even if they gain access to your network. This is especially useful when accessing sensitive information like your bank accounts or personal emails.

Conclusion

Protecting your finances from fraud is essential to maintaining financial fitness. With some straightforward precautions—like enabling two-factor authentication, using a VPN, and avoiding phishing attempts—you can safeguard your hard-earned savings and protect yourself from potential loss.

Remember, security isn’t about making life difficult; it’s about making it difficult for criminals to steal from you. By staying vigilant and proactive, you’ll be able to enjoy peace of mind and keep your finances safe. Stay secure and stay financially fit!

If you have not read our article titled “Build a Brighter Financial Future: Start Your Journey to Build Today”, click here to access it.

118118 Money Team • November 27, 2024

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