In recent years, there has been a rise in online financial fraud incidents. Scammers and fraudsters use fake websites, emails, text messages, and phone calls to steal people’s personal data, including bank accounts and social security numbers. They employ various methods to deceive individuals into giving away their valuable private information, all with the intention of stealing their hard-earned money. To prevent financial fraud, here are some mistakes you should avoid.

Don’t fall for claims that say you have won a prize
One common method scammers use to obtain private information is by posing as representatives of popular brands or organizations. They may claim that you have won a lottery or that someone entered you into sweepstakes and you have won a large sum of money. But to receive this money, you will have to pay a fee. Under this pretext, they might steal your bank account information and siphon off all your savings.

Do not fall for calls from scammers pretending to be from an organization you know
Often fraudsters pretend to be representatives of the government. They use real names of federal agencies such as the Social Security Administration, Medicare, or the IRS. Some even make up names that sound official. Sometimes, scammers will tell you they are calling from a business you may know, such as a popular tech company or a utility company. One of the common ways of impersonating an organization is by claiming that they are contacting you on behalf of a famous charity to ask for donations. In such cases, the phone number is masked to look legitimate on your caller ID.

Don’t believe someone who says you might be in trouble
To avoid financial fraud, it is important not to trust someone who calls you and claims you have a problem. They might falsely assert that you owe money to the IRS or have violated the law and are in trouble with the government. They will use legal jargon to convince you about the same. Scammers may try to deceive you by claiming that a family member is in an emergency or posing as a representative from your computer company, stating that there is malware or a virus on your personal computer. They may request you to verify personal information, which can lead to them secretly obtaining access to your important login information and passwords.

Never agree to pay money through links sent by text or email from suspicious phone numbers and email addresses
Be cautious of requests for payment that come through email or text. Scammers may try to pressure you into paying in a certain manner, such as through cryptocurrency or money-transfer services. They may even suggest putting the payment on a gift card. Stay alert and be wary of such demands. They will provide you with a link that will direct you to a legitimate-looking webpage. Here you will be asked to fill out your account details and share private data such as birth date, home address, etc.

To avoid financial fraud, always keep in mind the above-mentioned points when making transactions. Make sure to authenticate the legitimacy of any email, text message, or pop-up box before disclosing any personal information.