10 Tips to Avoid Common Financial Scams

10 Tips to Avoid Common Financial Scams

Many people fall victim to financial scams due to a variety of tactics that are used by criminals.

For many people, it can be easy to lose thousands of dollars in a single transaction. If you want to protect yourself and your pocketbook, there are a few financial scams to avoid while remaining on guard.

1. Strengthen Your Passwords: Make it a point to change your passwords and make them stronger to protect your bank account and other sensitive information that is stored on the Internet. Hackers are often capable of figuring out passwords that don't contain enough numbers or symbols.

2. Avoid Downloading Software: A common way that financial information is stolen is if you download software that appears from pop-up windows on emails. The programs are often capable of retrieving your personal information and can access your bank accounts.

3. Install Anti-Virus Software on Your Devices: Make it a point to install anti-virus software on your laptop or tablet to protect your computer from viruses that can enter the program. The software will add a firewall and spyware protection and will need to be updated periodically.

4. Avoid Wiring Money to Strangers: You may receive emails from individuals in foreign countries who ask for your help with helping them transfer money that they've inherited if you send them $3,000. Avoid sending money to any recipients that you don't know personally.

5. Visit Safe Websites: Visit reputable websites that are well-known while also reading the website's privacy information any time you plan to enter your financial information to make a purchase.

6. Avoid Certain Retailers: Avoid making purchases on unfamiliar retailers' websites until you've conducted enough research and have verified that it's a legitimate company.

7. Don't Click on Hyperlinks: Never open attachments or click on hyperlinks that you receive in your email, which can cause your financial information to be accessed. Delete all emails that appear suspicious and flag them as junk.

8. Avoid Donating Money to Unknown Charities: Many people lose money by donating to charities that they're unfamiliar with after receiving a phone call or email. Many criminals will ask you to donate money as a way of stealing your credit card information.

9. Protect Your Financial Information: It's vital never to provide a stranger with your financial information, whether you receive a phone call from your bank or a financial institution. Many people who perform scams will tell you that they need your personal information because your account has been compromised.

10. Safeguard Your Social Security Number: Your social security number is the most sensitive information that you need to protect at all costs to prevent your identity from being stolen. Never provide the information if it's requested on a website or if you receive an email.

Understanding how you can protect your personal information will ensure that you don't fall for a common scam. Understanding the practices that are used will allow you to use caution and avoid sharing your financial info with the wrong person.

Phil Shawe is the Co-Founder of TransPerfect, a global family of companies and the world’s largest privately held provider of language and business services.