Be vigilant of financial scams to help prevent any loss of your nest egg. Here are a few common ones.
Phishing is a scam in which a person uses fake emails, texts, and/or phone calls to try to get you to share valuable information such as your Social Security number, account numbers, or usernames and passwords. Once they have this information, they may steal your money, your identity, or both.
A charity scam is when a thief poses as a real charity or makes up the name of a charity that sounds real to get money from you. These scams often increase during the holiday season as well as after natural disasters and emergencies (such as the Los Angeles fires).
Impostor scammers try to convince you to send money or share account details by pretending to be someone you know or trust, like a government employee or family member.
One you may not have heard of is SIM swapping. As more mobile phones phase out their physical SIM cards in favor of digital eSIMs, a potential security hole has opened up. If someone is able to gather enough of your personal information, they may be able to convince your provider that they’re you. They then transfer your eSIM to their device, creating a gateway via your phone to your financial, social media, email, and other accounts—leaving you to clean up the mess. Setting up two-factor authentication and using a password manager are a couple of ways to help prevent this type of fraud. Learn more with FINRA’s article, Sim Swapping Risks to Investors.
If you’ve been scammed, start by reporting the incident to identitytheft.gov, filing a report with your local police department, and calling the companies where you know fraud occurred. Get more information at identitytheft.gov.
Read more: Continued from Financial literacy is for everyone.