SmartBanking Blog

Financial Preparedness: Know the Signs of a Scam

            Scams can happen to anyone, and scammers are constantly finding new ways to make their messages seem convincing. That’s why being financially prepared isn’t only about saving for emergencies or planning for unexpected expenses. It also means knowing how to protect yourself when someone tries to gain access to your money or personal information.

            Many scams are designed to make you react before you have time to think. You might receive a phone call claiming there’s suspicious activity on your bank account, a text saying you have an unpaid bill, or an email asking you to verify your information immediately. Some scammers may even impersonate a family member, business, or government agency.

            Although the stories may be different, the tactics are often similar. Be suspicious of unexpected requests for passwords, PINs, account information or verification codes—and NEVER share any of these. Watch for messages that pressure you to act immediately or threaten consequences if you don’t. Requests to send money through gift cards, cryptocurrency, wire transfers or other unusual payment methods should also raise a red flag.

            One of the best ways to protect yourself is to have a plan before you encounter a scam.

            If you receive an unexpected call, email or text asking for money or sensitive information, don’t let the sender rush you. Stop and verify the request independently. Instead of clicking a link in a message or calling a number provided by the person who contacted you, use contact information you already know and trust. For example, if someone claims to be calling from your bank, hang up and call the number listed on the back of your debit or credit card.

            Regularly monitoring your financial accounts can also help you catch problems quickly. Review your transactions, consider setting up account alerts, and report activity you don’t recognize as soon as possible.

            Scammers depend on urgency, confusion, and fear. Preparation gives you time to think and possibly avoid falling victim to a scam.

            During National Preparedness Month, take a few minutes to talk with your family about common scam warning signs and what to do when something doesn’t seem right. Knowing how you’ll respond before a scam happens can help you protect your personal information and your finances.