How to Protect Your Financial Information

In 2022, consumer financial fraud reached alarming levels. Reported losses totaled nearly $8.8 billion, which represented an increase of more than 30% over the previous year.[i] Unfortunately, this frightening increase in fraud has been a consistent trend over the last five years.

Protecting your identity, financial well-being and privacy in the face of these threats is of utmost importance. The following seven steps can go a long way toward this effort.  

Stay educated on recent trends in fraud tactics and scams.

• Follow reputable news sources that report on fraud and cybersecurity issues. These sources provide valuable insights into emerging scams and fraud trends.
• Subscribe to newsletters or blogs from organizations that specialize in fraud prevention, such as government agencies, financial institutions or cybersecurity companies. These newsletters often provide updates, tips and best practices for recognizing fraud.
• Before taking action, thoroughly research any requests or offers you receive. Evaluate their legitimacy, consider if they align with your expectations and verify the credibility of the source. Always be skeptical of unsolicited communications and requests for personal information.

Keep your checkbooks, credit cards, bank statements and IDs in a secure place.

These items contain sensitive information that, if obtained by unauthorized individuals, could lead to various forms of fraud and financial harm. To protect yourself, consider the following measures:

• Be mindful of your surroundings when handling sensitive information in public. Ensure that others cannot easily see your account numbers, PINs or passwords while you are using them. Shield your information when making transactions or accessing your accounts in crowded or unfamiliar environments.
• Securely dispose of any documentation that contains personal information. Use a shredder to destroy outdated identification cards, old debit cards, bank statements or any other paperwork that is no longer needed.
• Keep your account numbers, credit card numbers and ID information to yourself. Avoid sharing account numbers with others. The more confidential you keep such information, the less likely it is that it will fall into the wrong hands.

Regularly review your financial information for suspicious activity or any unauthorized charges.

• Set up transaction alerts or notifications from your financial institutions to your mobile device to receive real-time updates on account activity.
• Scrutinize each transaction and verify that you recognize and have authorized them.
• Keep track of your credit reports by obtaining free annual reports from credit bureaus or using credit monitoring services, and report any unusual activities.
• Utilize online banking on both your desktop and your mobile device to monitor your accounts frequently.

Be cautious of unsolicited offers, and be skeptical of requests for money or your personal information.

Always trust your instincts. If something does not feel right about a phone call, email or advertisement, it may not be legitimate and thus warrants further caution. Be sure you know whom you are sending money to, that the transaction makes sense and that the reason you are sending the money makes sense.

Keep your computer’s security software up to date, and use a secure Wi-Fi network.

Keeping your computer up to date will help protect you against malware, enhance online safety, mitigate remote attacks and increase vulnerability patching (updates that address security vulnerabilities). To do this, we suggest you:

• Enable automatic updates for your operating system and security software, or regularly check for updates manually.
• Install updates for all software applications regularly.
• Avoid using public Wi-Fi networks for sensitive activities such as banking online or accessing personal accounts.
• Consider using a virtual private network (VPN) for an added layer of security when accessing the internet.

Use strong passwords and multi-factor authentication.

• Use a combination of numbers, symbols and letters to form a long, complex password.
• Use unique passwords for each online login and regularly change all your passwords.

Be cautious of targeted telephone calls.

• Avoid divulging any banking or personal information to a caller over the phone, and do not give in to pressure to take immediate action.
• Beware of the question “Can you hear me?” which may lead to the recording of you responding “yes” to authorize unwanted charges or other types of identity theft.
• Remember that law enforcement agencies and the IRS will not call you.

By following these recommendations, we believe you can enhance your awareness of fraud tactics and scams, enabling you to protect yourself more effectively. Keeping up with the latest information and resources ensures you are well equipped to recognize and respond to potential threats.

As the above practices highlight, cybercriminals may be relentless, but their methods can be thwarted with continual awareness and caution. Please also know that we are evolving our defenses to help keep your data safe as we communicate with you.

When you are planning for your financial future, or considering how to ensure financial security throughout your life, a financial advisor can help you take steps to achieve your goals. Comprehensive financial planning is not just about managing your money – it’s a holistic process that addresses every aspect of your financial life, from investments and taxes to estate planning and insurance. Stearns Financial Group is a true fee-only, fiduciary, wealth management practice with experienced financial planners waiting to help you create a clear and strategic path to support both your present needs and future aspirations. We serve clients in North Carolina, with offices in the Triad and the Triangle. Talk to us today about defining your comprehensive financial strategy.

[i] Federal Trade Commission, “New FTC Data Show Consumers Reported Losing Nearly $8.8 Billion to Scams in 2022,” February 23, 2023, https://www.ftc.gov/news-events/news/press-releases/2023/02/new-ftc-data-show-consumers-reported-losing-nearly-88-billion-scams-2022. Accessed June 26, 2023.