Top Measures to Avoid Payment Fraud
Digital scams have become increasingly common these days as more and more people report they have fallen victims to all sorts of payment frauds. To avoid them, you should consider improving your safety while making payments in the digital environment. Here are some methods that can consolidate your security.
How Does Financial Fraud Occur?
This type of fraud can take place in a variety of ways both online and offline. For example, if someone finds your billing statements, they can use your account information and start buying products. Your account can also be hacked as a result of malicious software you accidentally and unknowingly download on your computer after clicking on a link or downloading an email attachment. Likewise, the website of your bank or the retail platform you’re using might get hacked, and as a result, your card number might be stolen. Many online scams are carried out by simply offering a service or product at a lower price. To benefit from the offer, you need to register your bank account for the purchase. The next thing you realize is that you get charged for purchases you haven’t made.
So, how can you avoid these dangers and keep your money safe? Here are some safety measures you should adopt.
According to the Better Business Bureau (BBB) scammers have often relied on popular digital wallets in order to carry out payment fraud. Some of the most common payment services of this type include PayPal, CashApp, or Venmo, but there are plenty other names that could be added to the list. Therefore, one of the main recommendations the BBB provides is to be cautious while using these services by taking several measures to prevent financial fraud. To keep your finances safe, when you make payments online, the best way to avoid fraud or hacking risks is to link your digital wallets to credit cards, not to your bank account. This way, even if someone manages to gain access to your account, they won’t be able to reach your savings.
As soon as you receive an unexpected amount of money, ask the sender to immediately cancel the transaction, if possible. Many online payment scams start by making payment mistakes intentionally.
Increase your safety while making payments by using security measures such as PINs or face ID recognition.
Report any scam you have experienced, or believe you might have been exposed to. The sooner the company that managed your digital wallet or bank account knows about the potential risks, the better as they can stop the scammers from robbing other people.
Don’t provide your bank account number to any unknown persons who sell products or services on the phone. Only do this if you have made the call and you’ve contacted a company that is trustworthy and reputable. If you’ve never bought anything from the company you plan to call, do an online search to understand how reliable the company is and read customer reviews.
When you buy something in a store, pay attention to your card from the moment you take it out of your wallet until you put it back. Make sure no one takes a photo of it or tries to copy the information on your card, and most importantly, make sure you always get it back.
Save all your receipts so you can compare them with your bank statements and don’t ever sign a blank receipt.
If you buy anything online, make sure you always receive a bill, check the amount that’s written on it and compare it with the sum that was withdrawn from your bank account. This is especially important if you make significant purchases.
If you spot any suspicious charges, report them to your card issuer immediately. If you’ve been the victim of some sort of scam or financial fraud, the sooner you let your bank and the authorities know about it, the better as there are higher chances they catch the authors.
If you suspect that someone has accessed your card or you’re sure it was used fraudulently, check your transactions immediately by contacting your bank or using their internet banking service. It doesn’t matter if someone stole $5 or $5,000 from your account. Reporting payment frauds helps everyone stay safer if fraudsters are found and stopped.