Financial fraud is more common than you think—and it’s getting more sophisticated every year. From fake SMS and text messages, to phishing emails and phone calls, to data breaches and identity theft; scammers are always looking for new ways to steal your personal and financial information.
The good news? You don’t have to live in fear. With the right habits and a little extra awareness, you can stay one step ahead of fraudsters and take control of your financial security. Here are 10 practical ways to protect yourself and your money from fraud—starting today.
1. Watch your accounts for financial fraud
One of the easiest ways to spot financial fraud early is by checking your accounts regularly. Review your bank and credit card activity at least once a week—daily if possible. Look for anything that seems unfamiliar, even small charges. Scammers often start with minor transactions to test if your account is active.
You can also set up transaction alerts with your bank or credit card company. That way, you’ll be notified in real time when money moves in or out of your account.
Try this: Schedule a 5-minute “money check-in” every Sunday to review your recent transactions.
2. Update your contact information
If your bank or lender spots suspicious activity or financial fraud, they need to be able to reach you—fast. Make sure your phone number, email, and mailing address are all up to date across your financial accounts. That way, you won’t miss important fraud alerts or identity verification requests.
Pro tip: Log into all your financial accounts to confirm your contact details are current.
3. Use strong, unique passwords
We know—passwords aren’t fun. But they’re among your best defenses against financial fraud.
Use a mix of uppercase and lowercase letters, numbers, and special characters. Avoid common phrases or anything tied to your personal life (like birthdays or pet names). And never reuse the same password across multiple accounts.
Password managers can help you create and store strong, unique passwords so you don’t have to remember them all yourself.
4. Turn on multi-factor authentication
Multi-factor authentication (MFA) adds an extra layer of security to your accounts. In addition to your password, you’ll enter a code sent to your phone or email when logging in.
Most banks, email providers, and credit monitoring services offer MFA. Turn it on whenever you can. It might feel like an overkill, but it’s worth it. Even if a scammer gets your password, MFA makes it much harder for them to get into your account.
5. Be careful with personal information
If someone calls or emails asking for your Social Security number, account details, or passwords—pause. Even if they claim to be from your bank or a trusted company, don’t give out sensitive information unless you’re 100% sure it’s legitimate.
Scammers often impersonate financial institutions to trick people into revealing private info. When in doubt, hang up and call the company directly using the number on their website.
6. Protect your devices and Wi-Fi from financial fraud
Your phone, tablet, or laptop can be a gateway to your financial life. Keep them secure with strong passwords, regular software updates, and antivirus protection.
Also, avoid using public Wi-Fi for banking or shopping. If you must connect on the go, use a virtual private network (VPN) to encrypt your data.
7. Shred documents before throwing them out
Old bank statements, credit card offers, tax forms, and medical bills may contain just enough information for a fraudster to piece things together.
Before tossing away any document that includes your name, address, account numbers, or Social Security number, run it through a shredder, rip it up, or burn it.
8. Check your credit reports for financial fraud
Your credit report offers a full picture of your financial history—and it can also reveal fraud. Look for accounts you didn’t open, credit inquiries you don’t recognize, or inaccurate personal details.
You can access your credit score and get credit monitoring alerts for free with Best Egg Financial Health.
Heads up: You’re entitled to a free report per year from each of the three major credit bureaus (Equifax, Experian, and TransUnion). You can get them all at once at AnnualCreditReport.com.
9. Consider a credit freeze or financial fraud alert
A financial fraud alert tells lenders to take extra steps to verify your identity before approving credit, while a credit freeze blocks most new credit applications entirely until you lift the freeze.
Both are free and easy to set up through the credit bureaus, and they won’t affect your credit score. If you suspect identity theft—or just want to be extra cautious—you can place a fraud alert or credit freeze on your credit file.
10. Stay aware of financial fraud scams
Phishing emails, fake texts, social media schemes—financial fraud comes in many forms. The more you know, the easier it is to spot the warning signs.
Keep up with common scams by following trusted sources like the Federal Trade Commission (FTC). If a message or offer seems too good to be true, it probably is.
Confidence comes from being prepared
Building your financial confidence includes maintaining it. You don’t need to become a cybersecurity expert to protect your finances—you just need to stay alert, take precautions, and know where to turn for help. Feeling secure is a big part of reaching your financial goals. That’s why staying on top of your financial security should be something you take very seriously.
This article is for educational purposes only and is not intended to provide financial, tax or legal advice. You should consult a professional for specific advice. Best Egg is not responsible for the information contained in third-party sites cited or hyperlinked in this article. Best Egg is not responsible for, and does not provide or endorse third party products, services or other third-party content.
