According to the Federal Trade Commission (FTC), Americans lost $10 billion to fraud in 2023. Bank transfers and payments lead the way as the No. 1 contact point between your money and the bottomless pockets of the online criminals who spend their days trying to separate you from it.
Others are after your personal information, which your bank works to safeguard just like it does your cash — but your money and data are safest when you join your bank in countering fraudsters by shoring up your accounts on your end.
When guarding against financial fraud and keeping your digital bank accounts safe, you shouldn’t choose passwords that are easy for you to remember. You should choose passwords that are hard for scammers to guess.
“Using strong passwords to access your digital banking accounts isn’t just good practice,” said Calkins. “It is just about essential nowadays with how sophisticated scammers have become at obtaining personal information.”
By setting up a strong password and utilizing some form of two-factor authentication, Calkins said you will reduce the risk of any fraudster gaining unauthorized access to your account.
“This means not using birthdays, anniversaries and especially not your Social Security number as a password,” he warned.
Fraudsters thrive on complacency. Don’t do criminals a favor by tuning out.
“I recommend that members frequently check bank statements and their digital banking accounts to review for any suspicious activity,” suggested Calkins. “The earlier you catch these, the better, so you can report any discrepancies to your financial institution.”
He also said, “Staying vigilant about any unusual activity can allow your bank or credit union to diligently remedy situations, minimize any potential losses from occurring further and retrieve any missing funds more quickly.”
Don’t Fall for Phishing Scams
New scams and frauds always emerge as cybercriminals hustle to stay one step ahead of the security and law enforcement professionals who work to thwart them. However, if it’s not broken, they don’t fix it — and one go-to strategy remains a timeless favorite among those bent on digital plunder.
“The reason we still see so many phishing scam attempts in our emails, text messages and on social media is because, unfortunately, people keep falling for them,” explained Calkins.
“To keep yourself safe from bank fraud, I recommend thinking twice before clicking any links or downloading any attachments from email addresses, social media accounts or phone numbers you don’t recognize.”
If something feels suspicious, trust your instincts and double-check.
“If you receive communication from someone claiming to be from your bank or credit union who asks for personal information, you can say, ‘Let me go ahead and call my bank,'” he continued. “Or, ‘Let me visit my local branch.’
“Doing so prevents the fraudsters from gaining access to your information — and your institution would not ask for information that they already have.”
Use the Bank’s Money for Purchases, Not Yours
Unless you absolutely have to use a debit card, Calkins recommended putting every purchase and payment you can on a credit card, instead.
“This is one of the most secure ways to keep your funds intact and secure,” he said. “Doing so prevents any fraudsters from having direct access to your funds.”
Calkins offered this example: if you are going to the gas station or the grocery store or making an online purchase where you must punch in your card information, use a credit card. If you happen to have any fraud happen on the transaction, it doesn’t hit your funds directly and it is a lot quicker to get your funds back than it would be with a debit card.
“This also protects you in the event that if something were to happen, you would still be able to use your debit card to pay your bills and buy your groceries if need be and not have to stress about it while the claim gets processed,” he added.
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