Avoid These Traps: How to Identify and Help Prevent Financial Scams
October is Financial Exploitation Awareness Month—a great time to review ways to protect yourself against financial fraud that could put your money or personal information at risk.
According to the Federal Bureau of Investigation, scams targeting adults ages 60 and older resulted in more than $3.4 billion in losses in 2023. That number continues to rise as criminals use more convincing tactics.
Whether it’s a fake government call or an “investment opportunity” that seems too good to be true, learning how to spot red flags can help you stay protected.
Spotting Today’s Most Common Financial Scams
Fraudsters often pose as trusted sources—such as bank representatives, IRS employees, or even family members—to trick you into sending money or sharing sensitive details. One recent example is the highway toll scam, where scammers send fake text messages about unpaid tolls.
- Tip: Legitimate organizations will never ask for your Social Security number, bank details, or passwords over the phone. If you’re unsure, contact your bank directly using the number on your card.
What to Do If You Receive a Suspicious Request
Another frequent tactic is the “family emergency” scam, where someone pretends to be a loved one in urgent need of money. If you receive such a call or message, pause before acting. Verify by calling that person—or another family member—before sending funds.
Scammers may also claim your bank account has been frozen or hacked and pressure you to provide personal information immediately. Don’t click links or share details. Instead, call your financial institution using the official number on your card.
Smart Ways to Help Prevent Financial Fraud
- Use strong passwords and enable multi-factor authentication whenever possible.
- Be cautious of urgent requests—scammers rely on creating pressure.
- Monitor your accounts regularly for unfamiliar charges or activity.
- Talk to someone you trust before making large or unusual transactions.
- Verify directly with an organization before sharing personal or financial information.
If you suspect a scam, report it immediately. Doing so can help protect you and others.
Where to report:
- Visit consumer.ftc.gov for resources on identity theft and fraud.
- Contact your local police department or your bank/financial institution right away.
Staying alert is one of the best ways to safeguard your finances and personal information. If you receive a suspicious request, reach out to your financial professional for guidance—they can help review your accounts and keep your money secure.
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