Protect Your Company From Personal Financial Fraud

November 2023
Personal financial fraud has increased by more than 70%, with fraudsters damaging their victim's credit scores, finances, and reputations. The fight against this kind of fraud is not one to fight alone, as it is a combined effort between the people and financial institutions. However, there are a few steps an individual or company could take to protect and reduce the risk of becoming a personal financial fraud victim.

How To Avoid Becoming A Victim

They say knowledge is power and there is no exception when it comes to fraud. The first step to protect yourself is staying current on the latest financial scams. Every day, the fraudsters invent new tricks to commit fraud. Therefore, it’s important to stay ahead of them.

Day in and day out, we constantly purchase goods and services from e-commerce platforms. Have you ever questioned the credibility of the platforms? To ensure you do not fall victim, ensure you are aware of the platform's reputation.

Did you know that banks have policies around fraud protection for their customers? Understanding their policies and the steps banks take to protect you is essential. These policies vary from bank to bank. Therefore, it is important to read them to ensure you fully understand their policies; if you need clarification, you can ask your trusted financial consultant to assist. Review policies for different banks until you get one that gives you peace of mind.

Fraudsters' other way of scamming people is by sending emails and making calls requesting personal information. Do not share any personal information with anyone, and in cases where you have documents that have your account's details, keep them safe, and for those you need to discard, shred them before disposing.

Most Common Financial Fraud Schemes

Identity Theft

This is where fraudsters call you pretending to be the bank and request personal information. Some of the information they request is passwords and login details, which they will log into your accounts and steal from you.

Fake Checks

This scam is becoming very popular because it takes a few days for a check to be verified. Therefore, when someone issues you a fake check, they will be long gone before you receive the confirmation.

Tax Refund

Fraudsters will request your details pretending to be a financial institution. Once they have them, they file tax returns in your name, reporting incorrect figures to maximize refunds. They have the refund sent to an account of their own and collect the money.

Credit Card Fraud

Credit cards are easy to get access to, especially if people know where you keep them. All someone needs are the card details and they can use it to make payments. Sometimes, fraudsters acquire these details through phone calls pretending to be financial institutions. Therefore, it’s important to be wary of who you are giving your credit card information to, and occasionally, request statements to keep track of your transactions, as this will help you notice any suspicious activity.

Actions To Take If You Are A Victim Of Personal Financial Fraud

One of the first things to do is to file an identity theft report, followed by a police report. This can help establish your innocence in case further fraud is committed in your name. You should also freeze your bank accounts, as this will stop more of your money being spent by the fraudsters. Once everything is resolved, it’s a good idea to set up authentications and change logins and passwords.

Protecting Your Business

It is essential to understand the risks and protect your company from becoming a victim. Educating your staff and partnering with an institution such as Strategic Business Advisory & Tax, can help prevent your business from falling victim to fraud.

Schedule a free consultation with us today to talk about setting your business on the path to success!