While having an account with a credit union or financial institution can prevent the loss of your savings to termites, thieves, or a house fire, online banking does come with a different set of vulnerabilities—specifically fraud.
Criminals these days use computers and call centers to skim much more than they could steal with a weapon on the street. In fact, Americans reported fraud losses of $8.8 billion in 2022, up 30% from 2021.[1]
Let’s take a look at what you can do to keep your nest egg safe from fraud.
Be Aware and Be Wary
Being a cynical grump isn’t a recipe for a happy life, but you do need to be careful when you see a red flag in a call, email, text, or in-person exchange. If an opportunity seems too good to be true, it probably is.
Be suspicious of:
- Offers or promotions that require you to provide upfront money
- Requests to wire or courier money
- High-pressure offers that require immediate commitment
- Verbal promises rather than documented offers that include detailed fine print
- Links to websites that are not your banking institution or don’t start with “https”
Secure Your Accounts
Don’t leave your financial and online account information unsecured, any more than you’d leave a pile of cash sitting by an open window. In fact, your banking log-in (user IDs and passwords) can be the key to your entire assets—treat them as treasure to safeguard.
- Don’t shop, bank, or share sensitive data over public Wi-Fi
- Set up complex passwords and change them routinely
- Don’t store a digital or paper list of passwords in an easy-to-find location or file name
- Shred documents such as account statements
- Don’t share your account numbers, user IDs, or passwords with others
Secure Your Devices
Security is partly about your behavior but also requires that your hardware and software are functioning to protect you. To achieve this:
- Stay up to date on security software and apps on your devices
- Check your privacy and sharing settings wherever they intersect with banking info
- Be cautious about saving credit card and bank details to retailers and service providers
Don’t Share Your Information
A reputable bank or lender will never reach out to you with a request for your username, password, account balances, or personal data—but it’s easy for criminals to mimic them by email, phone, or text. To avoid scammers:
- Dial your customer service 800 number rather than continuing an incoming call
- Look at the actual “from” email address rather than the “from” name
- Never provide your password
- Report any suspicious contact or exchanges as soon as possible
“Don’t Share Your Information” Includes Family
It’s worth repeating: don’t share your account numbers, user IDs, or passwords with others. And “others” includes spouses, family members, trusted friends, and financial and tax consultants.
You can typically set up view-only proxies for anyone with a valid need for ongoing information of your accounts. This will let them see purchases, payments, and other details, but prevent them from making any changes (deliberate or accidental).
It will also provide a level of protection for everyone concerned by documenting their access.
Beware of Links
If you’re provided with a hyperlink to click from an email, text, or other point of contact, don’t click on it directly. Instead:
- Copy and paste the link URL into a text file
- Check to see if the domain matches your bank, credit union, or lender’s
- Any reputable financial URL will start with “https” to indicate it is a secure site
Utilize Provider Fraud Prevention Alerts and Services
Familiarize yourself with the ways your banking institution works to prevent fraud, and utilize optional services. These may include:
- Virtual codes to use for online shopping in place of your actual credit card number
- Two-step authentication or biometrics to sign into your account
- Identity theft protection programs
NJFCU Helps Keep Our Members Safe
Whether it’s through great rates on our credit cards and certified secured loans or our built-in account tools to help you reach your goals, North Jersey Federal Credit Union is committed to protecting our members’ financial security and wealth building.
That commitment extends to providing tips and protections to help you avoid banking and credit card fraud so you can stay on a straight pathway to your goals.
Ready to learn more about membership with the best credit union in NJ? Join today!
