The word finance is always associated with the word fraud. However comfortable or experienced you are in the finance sector, you will never be so, as to run out of the scope of it. The main reason behind it is the volatility that makes this sector unpredictable. Financial frauds have been on the rise as more and more advances in the field have been seen during the last decade or so. Asset theft, money laundering, cybercrime, accounting frauds, bank advances without collateral, loan losses, and other types of financial crimes are all on the rise. They reveal not only the financial system’s flaws, but also the extent of human avarice.
Eventually, ordinary individuals become the focus of suspicious fraudulent operations. Banking fraud cost Public Sector Banks (PSBs) around Rs.25,775 crore in 2017-18. You could lose your hard-earned savings if you fall victim to financial fraud. Understanding how to safeguard your savings and assets is an important aspect of sound financial management. Here are seven financial safety practices to help you avoid financial disaster:
Avoid Bogus Lottery Text Messages and E-mails
You may have received a text message or an email informing you that you have won the lottery. And you’ll have to pay any applicable taxes and fees in order to get it. Never believe such communications because you can’t win a lottery that you didn’t enter.
Keep Your Personal Information Safe
Your User IDs, passwords, and PIN numbers have a strong influence on your luck. You can use this information to get money and assets from your banks and investments. Keep all such information private and secure, and change your passwords and PIN numbers on a regular basis. Don’t give out any of your personal information to strangers. No entity would ever call you to ask for your passwords and PIN.
Use Strong Passwords
Keeping your passwords strong is one way you can avoid financial fraud. Regularly changing your password is a good practice that can help in order to protect your bank account and other sensitive information.
Choose Reputed Online Payment Platforms
For your online transactions, use reputed online payment platforms. Check to see if they have real person reviews and make payment according to that. Verify and only then add your personal info on that platform.
Check Your Bank Statements Regularly
Checking your banking transactions regularly can help you stay updated on all the transactions that are happening with respect to your bank account. Closely monitor all transactions to avoid any kind of bank fraud.
Don’t Let High Returns Tempt You
A high return on your investment is frequently too good to be true. Fraudsters rely on the avarice of investors who are attracted to aggressive and quick profits in the majority of investment fraud instances. Pyramid and Ponzi schemes, unregistered investments, promissory notes, commodities, and other financial frauds frequently exploit high profits to entice you to make poor judgments.
Avoid Fake Calls
Avoid fake calls that say they are from your bank’s branch and ask for ATM-related details. However legit it might sound, never respond immediately with respect to any information. Fraudsters like this always do a background check of the person they are trying to target. Their intention is always to sound like they are calling from the bank but that is not always true.
Banking frauds and financial scams are on the rise, casting doubt on the integrity of our financial system both online and offline. Effective and severe checks, internal control mechanisms, security, and openness are essential at every level of a business, whether private or public, in order to eliminate these scams and frauds. Following the above suggestions, however, will help you avoid being a victim of frequent financial scams and frauds.