Banking and Investing Fraud

In discussing banking and investment fraud, two areas of fraud should be highlighted: fraud perpetrated against the financial institution itself and fraud that affects consumers as a result of dealings with a financial institution.

Consumer Fraud

Consumer fraud related to banking and investing comes in four categories: credit/debit card fraud, check fraud, electronic fraud, and identity theft. Here is an overview of each category.

Credit/Debit Card Fraud - a crime whereby your credit or debit card can be reproduced in order to use the credit balance to obtain a financial advantage, or a card is lost or stolen and the card is used by someone other than the owner, or cards are intercepted in the mail and used. Protect yourself from this fraud:

Memorize your pin
Check your statements
Tear up credit card receipts and pre-approved credit card offers
Use only on secure websites
Never give card numbers out to strangers

Check Fraud - a crime whereby another party would alter or reproduce your check without permission and use it for financial gain. Protect yourself from this type of fraud:

Reconcile your bank account promptly
Never sign a blank check
Keep unused checks secure
Notify the bank of lost or stolen checks immediately

Electronic Fraud - bank customers receive emails that look like they are from the bank but are actually a hoax. Protect yourself from this fraud:

Never respond to emails that ask for security passwords ( a bank won't ask for that.)
Never download software from an email
A bank will not send you an email asking for your account details, financial details, or login details

Identity Theft - your personal details are obtained to get some sort of financial or other benefits, leaving you the owner of that identity often in large debt with a negative credit history and in some cases with legal implications. Protect your identity in the following ways:

Have a secure mailbox that only you can access
Shred documents before disposing of them
Make sure security software on your computer is up-to-date
Report suspicious activity on your credit card or bank account immediately
Check your credit report every six months

IMAGES CREATED BY GAVS