What is Fraud and How Can You Fight it?

Fraud is a pervasive issue that affects individuals, businesses, and communities worldwide. Fraud is defined by Merriam-Webster as the intentional perversion of truth to induce another to part with something of value or to surrender a legal right.  Recognizing the signs of fraud and knowing how to protect yourself is crucial in today’s digital age. In honor of Fraud Awareness Week, we aim to shed light on various types of fraud, provide practical tips for prevention, and empower you to stay vigilant against potential scams.

Below are a few common types of Fraud to be aware of:

1. Phishing Scams:
   • Phishing emails and messages are designed to trick you into revealing sensitive information like passwords or credit card details. They often mimic legitimate organizations or individuals.
2. Identity Theft:
   • This occurs when someone steals your personal information to commit fraud or other crimes. It can lead to financial loss and damage to your reputation.
3. Online Shopping Scam:
   • Fake online stores or sellers may offer products at prices that seem too good to be true. They may take your payment and never deliver your items.
4. Investment and Ponzi Schemes:
   • Fraudulent investment opportunities promise high returns but rely on new investments to pay previous investors. They eventually collapse, causing substantial financial losses.
5. Tech Support Scams:
   • Scammers impersonate tech support agents, claiming that your computer has a virus or issue. They may ask for remote access or payment for unnecessary services.
6. Voter Fraud:
   • This is another word for election manipulation. It involves illegal interference with the process of an election.
7. Health Care Fraud:
   • This involves the use of the health care system by an individual, medical provider, or insurance company in a deceitful manner to profit from it.

Consider these tips to help protect & prevent yourself from becoming a victim of fraud:

1. Strong, Unique Passwords:
   • Use complex passwords and avoid using the same password for multiple accounts. Consider a password manager for added security.
2. Two-Factor Authentication (2FA):
   • Enable 2FA whenever possible. It adds an extra layer of security by requiring a secondary form of authentication.
3. Beware of Unsolicited Communication:
   • Never share personal information or click on links in emails or messages from unknown sources. Verify the sender’s identity before taking any action.
4. Stay Informed:
   • Keep up with the latest scams and fraud techniques. Awareness is your best defense against falling victim.
5. Monitor Your Accounts:
   • Regularly review your bank statements, credit reports, and online accounts for any unauthorized or suspicious activity.
6. Verify Before Trusting:
   • Always verify the authenticity of websites, businesses, or individuals before providing any personal or financial information.
7. Educate Yourself and Others:
   • Share knowledge about common scams and prevention methods with family, friends, and colleagues.

Fraud Awareness Week serves as a crucial reminder of the ever-present threat of scams and fraudulent activities. By staying informed, practicing vigilance, and implementing preventative measures, we can protect ourselves and our communities from falling victim to fraud. Together, we can create a safer digital environment for everyone.

For additional tips, click here to visit First Bank’s Security page!