How to Spot and Avoid Financial Scams

Financial scams are more common than ever, with scammers constantly finding new ways to target individuals and businesses. From email phishing scams to impersonation schemes, these scams can cost you money and put your personal information at risk. Knowing how to avoid financial scams is key to staying safe. At Frontier Bank, we're here to help you recognize the most common types of scams, spot red flags, and protect your finances.

Key Takeaways for Avoiding Financial Scams

• Verify the sender: Always confirm the identity of anyone asking for personal or financial information.
• Protect your data: Use strong passwords and enable two-factor authentication.
• Be skeptical of unsolicited offers: If it sounds too good to be true, it probably is.
• Research before acting: Take your time and do your homework before making any financial decisions.
• Trust your instincts: If something feels off, pause and reconsider.

What Are the Most Common Financial Scams?

Financial scams come in many forms, but some of the most widespread include:

• Phishing: Emails or texts that appear to be from legitimate companies, asking for personal or financial details.
• Impersonation Scams: Scammers pose as trusted individuals or organizations, requesting payments or sensitive information.
• Investment Scams: Promises of high returns with little or no risk, often pushing you to invest quickly.
• Lottery and Prize Scams: Claims of winning a prize or lottery, but asking for fees or taxes upfront to claim the winnings.
• Online Shopping Scams: Fake online stores that collect payment but never deliver the product. These stores may also sell gift cards, making you think the money is going on that card.

Read more on different scams that you may encounter.

What Are the Red Flags of a Scammer?

Scammers often use tactics designed to pressure or confuse you. They might claim your account has been compromised. Sometimes, they say "You'll miss out on an opportunity unless you act fast." Real businesses won’t rush you into making financial decisions.

Take your time to verify the information and research the sender. Never feel obligated to respond immediately to unexpected calls, emails, or messages. Watch out for these warning signs:

• Urgency: If someone demands immediate action or threatens consequences, it’s likely a scam.
• Unsolicited Contact: Unexpected emails, calls, or texts asking for personal information should raise suspicion.
• Requests for Payment: Be cautious if asked to pay in unusual ways, like gift cards, wire transfers, or cryptocurrency. Only consider traceable forms of payment.
• Too Good to Be True: If an offer sounds too generous, it’s probably a scam.
• Spelling/Grammar Errors: Real businesses usually avoid sending poorly written communications.

Be Cautious with Links

Scammers often send emails or messages with links that lead to fake websites designed to steal your information. Always double-check where a link is taking you before clicking. Hover over the link to see the actual URL, and if it looks suspicious, don’t click.

If you get an email that looks like it’s from a trusted organization, go to their official website. Type the address yourself instead of clicking the link in the email. This simple step can help you prevent someone from stealing your personal information.

Protect Personal Information

Guard your sensitive information, like Social Security numbers, bank account details, or passwords. Scammers may ask for this information in phishing emails or fake calls.

Create strong, unique passwords for all accounts and enable two-factor authentication whenever you can. This added step makes it harder for scammers to access your accounts, keeping your information safe.

Monitor Your Finances

Stay on top of your bank and credit card statements by reviewing them regularly for any suspicious transactions. Set up account alerts, like Frontier Bank’s Notifi alerts. These alerts help you monitor all activity and spot potential scams early.

Educate Yourself on Current Scams

Keep up with the latest scam tactics by following reliable sources and blogs, such as Frontier Bank’s. Staying informed helps you recognize red flags and avoid financial fraud. Before making big decisions, it’s always a good idea to consult with trusted financial advisors.

Report Suspected Scams

If you believe you’ve encountered a scam, take action immediately. Reach out to Frontier Bank or your local authorities to report suspicious activity. Acting quickly can protect your finances and prevent others from becoming victims.

At Frontier Bank, we’re here to support you every step of the way. By staying vigilant and informed, you can safeguard your finances and avoid scams. Remember, if something feels off, trust your instincts and reach out to us for guidance. Your security is our priority.