5 steps to secure your financial data from fraud

Since the start of the pandemic, the banking industry has seen an increase in financial fraud across the country. From check fraud to payment app scams, the issue has been escalating and impacting Americans of all ages and income levels.

Through my 14 years in the financial industry, I’ve heard plenty of stories about how fraudsters work and have learned several proactive steps to help prevent fraud. Whether you are working to protect your business or personal account, these five steps will help secure your money from those who might be seeking to exploit your finances.

CHECK YOUR ACCOUNTS DAILY. One of the simplest ways to keep your finances secure is to check your accounts each day. Some scams start so small you may not notice the impact to your total balance. I recently heard of an individual who fell victim to a payment app scam where the first transaction was under $2. Unfortunately, it was missed and paved the way for larger transactions down the road. Had the individual caught that first fraudulent transaction early and notified their bank, there’s a better chance they could’ve prevented more from being stolen.

SET UP ACCOUNT ALERTS. Most banks have the option to set up alerts on your accounts. Set an alert for transactions that are higher than your normal spend and another to alert you if your account balance drops below a minimum amount so you can act. Having these alerts provides a second level of awareness and can help identify fraud as soon as it happens.

AVOID WRITING CHECKS. Printed checks have key sensitive information on them such as your account name, number, and address that can be easily captured or stolen. The easiest way to prevent this is to avoid using printed checks all together. Most banks offer electronic payment options such as Bill Pay which results in an electronic transfer that can’t be intercepted by fraudsters.

USE CREDIT, NOT DEBIT. Operating on credit, especially online, is one of the easiest ways to protect your finances. When fraud occurs, the most difficult and immediate impact for clients is the inability to access funds they expected to have in their account. Credit cards offer protection by eliminating the risk of your bank account numbers being compromised and your cash being taken.

DEVELOP YOUR RELATIONSHIP WITH YOUR BANKER. Think of your banker like your primary care physician - you want to keep them updated as your life and needs change. If you are as transparent as possible with your banker about your financial situation, lifestyle and plans, they’ll be able to provide tools tailored to you that serve as a line of defense against fraud.

The frequency of fraud continues to escalate, so take the time to be vigilant and take proactive measures to protect yourself. To learn more about how you can secure your finances and plan for future financial success, contact Valley Bank’s Alabaster team at 205-378-5700.