Financial Crime World

Protecting Yourself from Financial Scams

Types of Financial Scams

Here are some common types of financial scams and how they work:

Account Takeovers (ATO)

Scammers gain access to your email and password through phishing, data breaches, or man-in-the-middle attacks. They can buy goods with access to your Amazon account, ask friends for money on Snapchat, or access multiple accounts with a single takeover.

  • Be cautious of unsolicited emails that request sensitive information.
  • Use strong passwords and enable two-factor authentication (2FA) whenever possible.

Ponzi Schemes and Other Investment Fraud

Scammers lure victims with promises of large gains, little risk, and once-in-a-lifetime opportunities. They often target affinity groups and may ask victims to sign non-disclosure agreements.

  • Verify the authenticity of companies and individuals before investing or sharing sensitive information.
  • Be cautious of unsolicited investment offers or requests for personal information.

Small Business Financial Fraud (Embezzlement, Misuse, etc.)

Employees can steal from businesses by embezzling funds or misappropriating company assets. This type of fraud is common when employees have financial power without oversight and control.

  • Regularly review your business’s financial accounts and credit reports for suspicious activity.
  • Implement robust financial controls and monitoring systems to prevent employee misconduct.

Romance Scams

Scammers build a relationship with victims, often through online dating platforms, and ask for money or gifts.

  • Be cautious of unsolicited requests for money or personal information from someone you’ve met online.
  • Verify the authenticity of individuals before investing time or resources into a relationship.

Protecting Yourself

To minimize the risk of falling victim to financial scams:

  • Regularly review your financial accounts and credit reports for suspicious activity.
  • Use strong passwords and enable two-factor authentication (2FA) whenever possible.
  • Consider using a credit monitoring and identity theft protection service, such as Aura, to help detect and prevent potential scams.
  • Be cautious of unsolicited investment offers or requests for personal information.

By being aware of the risks and taking proactive steps to protect yourself, you can minimize the impact of financial fraud.