One thing that some people learn to do early on is to check their bank account balances and credit card statements when they wake up every morning. The reason you want to do this is that fraudulent activity can happen, and the sooner you identify it, the sooner you can combat it. If you seldom check your bank account balances or credit card statements, that's usually when fraudsters can get away with these activities.
Let's go over a few of the fraud and theft varieties you might encounter that can severely impact your finances. If you can avoid these, you'll feel better about your financial affairs.
Elder Financial Abuse
You might be an older person, or perhaps you have a relative in an assisted living facility or nursing home. Many fraud perpetrators target the elderly because they feel like these individuals don't keep a close eye on their money.
There are some different elder financial abuse forms. For instance, you might have a caretaker who steals money from an elderly resident's room. If the resident asks the caretaker about it, they deny it.
If the resident doesn't have physical evidence backing up their claim, proving theft can be difficult. The older adult might set up a hidden camera in their room to get proof to back up their claim if they decide to contact the police about the theft.
Identity Theft
Identity theft can impact older adults, but a thief can try it with someone of any age. They might take your trash, then look through it for documents that have your social security number or bank account numbers. They'll then try to pose as you and clear out your bank account.
They might also try to open new accounts or get loans in your name. That's a financial nightmare, and it can take years to sort out the mess in some cases.
You avoid all this by shredding any document you throw away. You can buy a shredder and keep it in your office or another convenient room.
If you can't get yourself a shredder, you can always rip any financial document into little pieces by hand before you put it in the trash. You can also watch out for anyone going through your garbage. Installing an outside camera to monitor that is never a bad idea.
Phishing or Email Fraud
Some thieves use phishing scams to steal your identity. This occurs when you get an email from an entity that you think is legit, but it turns out to be a fraud perpetrator.
You can watch out for misspelled words and similar clues that the email does not come from the entity that it claims. Generally, these emails are easy to spot. However, every once in a while, you'll get one that looks official, and that might be the one that gets you.
If an email looks legit, but it's asking for things like your bank account number, social security number, or other sensitive information, think about what you're doing before you respond to it. If you're not sure that it comes from your bank or the IRS, contact them and ask them about the email before responding.
You can often detect fraud that way. Thinking before you act is part of online responsibility, and it's something that can prevent identity theft.
Wallet or Purse Theft
You might go on vacation, or maybe you're walking in a crowd. The next thing you know, someone snatches your purse, or perhaps you put your hand in your back pocket and realize someone lifted your wallet.
This seems like a nightmare scenario, and it can be. Not everyone can remember to grip their purse tightly at all times or to keep their wallet in a front pocket where no one can take it as easily.
You should avoid carrying things like your social security card or passport in your wallet. Leave those at home in a locked safe or somewhere else secure whenever you can.
If someone does grab your purse or wallet, or you realize that you no longer have it, think immediately about what was in it. You probably won't see any money that was in there again, but you can call your credit card companies and your bank immediately and let them know what happened. They can freeze your account and track the thief if they try to use your cards or pose as you in other ways.
You can also avoid carrying very much cash. There's no reason to walk around with hundreds or thousands of dollars, or you're asking for trouble.
Bank Card Skimmers
You can also run into financial problems if someone uses a skimmer to access your bank account information. Some clever individuals put skimmers on ATMs and get your card number that way. They use that number to get money out of your account.
There are some ways to avoid this, though. One thing you can do is to go online and look at skimmer pictures. If you know what they look like, you can easily identify them, and if you see something on an ATM that looks like that, you'll know not to use it.
You can also avoid ATMs on street corners or other shady locations. You should only use the ones that belong to your bank whenever possible.
Whenever you check your account balances and credit card statements, look for anything unusual. That's often the first sign a hacker has your identity.
Usually, you can fight back by closing your accounts and opening new ones. Most credit card companies will forgive fraudulent purchases.
Never ignore any monetary activity that seems unusual, and if you experience theft, contact the authorities. They'll want to help you catch the thief, so they do not victimize someone else.
Thieves are smart, and they always come up with new schemes and devices. If you're diligent, though, you can combat them and keep your money and identity secure.
