Most people think of financial fraud showing up as a large, unusual charge on their bank account. But it’s the little transactions that can actually be the biggest red flags. Known as “phantom payments,” these small charges are a scammer’s way to test the validity and activity of your account before wiping it clean. Would you notice if $1 went missing? Probably not. And that’s what they are counting on. By the time you do notice, you have a BIG problem on your hands. In the case of fraud, you should sweat the small stuff. Be sure to be on the lookout for small, unexplained charges to your credit or debit card.
Here are a few other red flags to be on the lookout for, especially during this popular shopping season:
What To Look Out For:
Spotting scams isn’t always easy. A message might look like a legitimate job offer when you’ve been actively job hunting or it may read like a package delivery update when you’re expecting a shipment. Here are some warning signs.
Unusual requests
If you think your bank is reaching out to you, it’s important to pay attention to what it’s asking. If the bank is asking you to fill out your address, rather than simply confirm it, that’s a red flag.
“If you have to do things from the beginning, like your name, your address and your card, that is all quite weird,” explains Danai Antoniou, former fraud systems engineer.
Weird email domain or phone number
Scammers often disguise their messages to look like they’re coming from a legitimate source, but the phone number or email address associated usually gives them away.
If the email domain is slightly misspelled, overly long or doesn’t match your bank’s official domain, that’s a sign that something’s off. The same goes for phone numbers, as banks won’t text you from a random local number or ask you to click a link from an unfamiliar sender.
If anything feels inconsistent, it’s safer to contact your bank directly using the number on the back of your card.
Steps To Protect Yourself:
Check your transactions regularly
Review your bank and credit card statements often to watch for spending patterns and spot any unauthorized charges early. Pay attention to any pending charges; the sooner you catch suspicious activity, the quicker you can report it and minimize potential losses. Setting up account alerts for all transactions means you won’t miss even $1 being taken from your account, and you see all your spending as it happens in real time.
Sign up for an identity theft protection service
With an identity theft protection service, you can spot problems early on. The best services look for identity theft, fraud and data breaches. They can monitor everything from your Social Security number and driver’s license number, to your credit files, bank and investment accounts, home and auto titles, plus dark web scanning.
Develop a relationship with your bank
Building a strong connection with your bank can make a big difference when issues arise. Let your bank know if you plan to make large purchases or unusual transactions ahead of time, as it can help the bank recognize legitimate activity and avoid unnecessary fraud alerts. Having a trusted point of contact at your bank also means you can get faster, more personalized help if you suspect fraud.
Use data removal services
Check out reputable data removal services like DeleteMe, Incogni, and Optery to help limit how much of your personal information is available online. Reducing your digital footprint can make it harder for scammers to gather details they use to target you. These services work by identifying and removing your data from data brokers and other public databases.
Use a different card for subscriptions
Since recurring purchases like subscriptions, and really any online payments, are susceptible to fraud, consider using a separate card/account with a low limit for these transactions. This keeps only a small portion of your money at risk from scammers.
Double check where your card details are saved
Look at the places where your card is linked to like store websites and apps such as Uber. Make sure you have a strong password and enable two-factor authentication to be most secure.
What To Do If You Fall Victim To A Scam:
If you realize you’ve responded to a scam or shared information with someone you shouldn’t have, acting quickly can limit the damage.
Antoniou says the first step is to contact your bank immediately. Your bank can freeze your card, lock your account or stop pending transactions before the scammer can take more money. You should also change any passwords connected to the compromised account and enable two-factor authentication if it isn’t already on…
You can read the full article here.
No time of year is a good time to get scammed out of your hard-earned money. But during the holidays, fraud attempts are frequent, and the hit can be harder to take. Make sure you remain vigilant during this hectic time or year, no matter how busy you may be.