As anyone who has worked even a single day in their life knows, money is hard to make but incredibly easy to lose, and a major source of losing money is financial fraud. There are many types of financial fraud that one can easily fall prey to, including credit fraud, check-based forgery, and online transaction scams. So, it is important to stay alert and avoid some mistakes that can leave people vulnerable to financial fraud.

Saving payment information online
Convenience often trumps safety when it comes to online payments. Most individuals who use the digital payment avenue tend to save their credit card or debit card credentials online so that they do not have to physically type the card number, date of expiry, and cardholder’s name every time. However, this is a dangerous practice that must be avoided.

The main risk associated with saving one’s card details on online payment portals is that cybercriminals may get hold of this information. This is why, cybersecurity professionals recommend people who frequently use online payments to check out as a guest and not press the “save this card for future transactions” option while making online payments.

Skipping two-step authentication
Two-step authentication involves payment portals asking extra security questions or one-time passwords (OTPs) while receiving payment credentials for online transactions. While this is mandatory in many digital payment portals, there are people who may skip it in places it is not mandatory. However, this is a common mistake to avoid to prevent financial fraud.

Two-step verification ensures that a person properly authenticates and approves the financial transaction they are making on the payment portal. In this way, nobody except the person making the payment can do so as they have the secret “second layer of security” details that are needed to unlock the portal and make the payment. Two-step authentication is essential and avoiding it can be a mistake that can leave people vulnerable to nasty financial fraud situations.

Not checking accounts regularly
About two or three decades ago, people had to physically visit banks or contact them to get information about their savings accounts. Today, just a few clicks on one’s smartphone make it possible for them to view this information without any hassles. As the process is so easy and convenient, one must check their account balance and key details such as interest accumulated and others regularly. Not doing so can become problematic for people due to various reasons. For instance, if a malicious entity siphons money from an individual’s bank account through forgery or any other unethical ways, then the easiest way in which the individual knows about it is through checking their account information from time to time without fail.

When a person checks their account and finds that they have been affected by financial fraud, they can contact their bank immediately to freeze their account to prevent any further unauthorized transactions from going through and inform the appropriate law enforcement officials about the situation.

Giving sensitive information away
At some point, almost everyone may have received emails or anonymous text messages with information such as “Help the Nigerian Prince to receive large sums of money in return” or “Congratulations on receiving a penthouse and four luxury SUVs” or something similar. These are online financial traps that can completely wipe out an individual’s bank savings if they fall for the likes of these.

Essentially, such emails and messages are part of a phishing attack in which people are promised the sun and the moon in exchange for their confidential payment credentials. Needless to say, one should not give away their sensitive personal information, Social Security details, or credit/debit card information to such sources.

Not setting up an alert for credit monitoring
A credit card is a valuable financial instrument that enables people to buy things now and pay for them later. This attribute of credit cards also makes them and their holders vulnerable to financial fraud. Several banks and credit card companies provide people with credit card alert provisions so that their card usage is kept safe. However, people may choose to not set up such alerts, which is a major mistake that leaves people undefended against malicious elements online and offline.

Essentially, setting up an alert enables one to receive a message or an email whenever their card or other credit privileges are used. So, in instances wherein they have not authorized payment and receive a notification of payment, they can contact their card company or the police to take action immediately.