Stop, Verify, Protect: Simple Habits That Can Help Prevent Financial Scams
Scammers have become increasingly sophisticated. A fraudulent phone call may appear to come from your bank. A text message may warn that your account has been locked. An email may look almost identical to something you would normally receive from a financial institution.
The message is often designed to create one feeling: urgency.
“You need to act immediately.”
“There has been suspicious activity on your account.”
“Click this link to prevent your account from being closed.”
“Verify your information now.”
When something like this happens, one of the most important things you can do is slow down.
Develop a Habit of Verification
A good rule to follow is simple:
Never assume an unexpected phone call, email, or text message is legitimate just because it looks or sounds official.
If someone contacts you claiming to be from your bank, credit card company, investment firm, government agency, or another financial institution, you do not have to continue the conversation.
Instead, hang up and contact the organization directly using a phone number you already trust.
For example, use:
The phone number printed on the back of your debit or credit card
A phone number listed on an official statement
The financial institution's official website or mobile application
The direct phone number you normally use to contact your financial professional
Do not simply call back the number that contacted you.
Caller ID can be manipulated, and a phone number appearing to belong to a familiar institution does not necessarily mean the call is legitimate.
Be Careful With Links in Emails and Text Messages
Fraudulent emails and text messages frequently contain links designed to look like legitimate login pages.
You may receive a message stating that your bank account has been compromised, a payment has been declined, or your password needs to be reset.
Rather than clicking the link, open the institution's mobile app yourself or type the website address directly into your browser.
The same principle applies to investment accounts, retirement accounts, credit cards, payment services, and other financial websites.
Taking an extra minute to access the account independently can help prevent you from entering your username, password, or personal information into a fraudulent website.
Never Give Out Security Codes
One-time verification codes are designed to protect your accounts.
If you receive a security code by text message or email, do not give that code to someone who unexpectedly calls you.
A scammer may already have some of your personal information and may be attempting to reset your password or gain access to your account. The verification code could be the final piece they need.
Passwords, PIN numbers, and verification codes should generally remain private.
Be Suspicious of Pressure
Legitimate financial professionals understand that clients sometimes need time to verify information.
Be especially cautious when someone tells you:
You cannot hang up
You must act immediately
Your money must be moved to a “safe” account
You need to purchase gift cards
You need to send cryptocurrency
You should wire money somewhere immediately
You cannot discuss the situation with your bank, family, financial professional, or another trusted person
Scammers often try to isolate people and prevent them from asking questions.
Taking time to verify the situation can be one of your strongest defenses.
Protect Your Email Account Too
Your email account is often connected to your financial life.
Someone who gains access to your email may be able to reset passwords for other accounts, view financial documents, or impersonate you.
Consider using strong, unique passwords and enabling multi-factor authentication whenever it is available.
Avoid using the same password across your email, banking, investment, and social media accounts. If one account becomes compromised, a reused password could potentially provide access to several others.
Talk to Someone Before Moving Money
One of the simplest habits you can develop is also one of the most effective:
If something does not feel right, call someone you trust before sending money or providing information.
If a person contacts you claiming there is an urgent issue involving one of your financial accounts, contact the institution directly.
If the situation involves an investment or financial account, consider contacting your financial professional using the phone number or email address you already have on file.
A quick conversation may help identify something suspicious before money or information changes hands.
When in Doubt, Stop and Confirm
Technology has made financial transactions faster and more convenient, but it has also given scammers new ways to impersonate legitimate organizations.
Protecting yourself does not require becoming an expert on every type of scam.
Instead, develop a few consistent habits:
Stop. Verify. Then act.
Do not allow an unexpected phone call, email, or text message to pressure you into making an immediate financial decision.
When there is any doubt, contact your bank, financial institution, or financial professional directly using contact information you already know and trust.
A few extra minutes spent verifying a request can potentially prevent a much larger financial problem.
Legacy Wealth Trail
Helping our clients make informed financial decisions includes helping them protect the financial lives they have worked hard to build.
If you ever receive a suspicious request involving one of your financial accounts or a message claiming to involve your financial professional, contact the appropriate institution or financial professional directly before taking action.
This material is provided for general educational purposes only and is not intended to provide legal, cybersecurity, or financial advice. Fraud and cybersecurity practices continue to evolve, and individuals should contact the appropriate financial institution, law enforcement agency, or cybersecurity professional regarding specific concerns.