The Ultimate List of Fraud Prevention Do’s and Don’ts 

Research suggests that the average person makes at least two online transactions per day. Seems like a lot? Well, consider the vast array of digital sources we access and engage with: 

• Online shopping: This includes purchasing goods from e-commerce platforms, ordering food online, and paying for digital services.  

• Banking: Many people manage their finances digitally, checking balances, transferring funds, and paying bills online or via mobile apps.  

• Subscriptions: Recurring payments for streaming services, online subscriptions, and other digital content contribute to daily transactions.

• Transportation and ride-sharing: Using apps like Uber and Lyft or paying for public transportation with digital wallets adds to the count.

• Contactless payments: Increasingly, people use mobile wallets or contactless cards for in-person purchases, blurring the lines between online and offline transactions.

If we need it or want it, there’s usually a digital service that can provide it. That’s a win for consumer convenience, but it’s also creating fertile ground for fraudsters. As a result, fraud prevention needs to be among the most important concerns for both individuals and organizations. 

As the number of opportunities to engage online increases, so do the tactics employed by fraudsters, making it increasingly challenging to safeguard sensitive information and financial assets. This necessitates a comprehensive understanding of the evolving fraud landscape and the adoption of robust preventative measures.

This blog provides a detailed guide to fraud prevention. It outlines a series of actionable “Do’s and Don’ts” designed to mitigate the risk of falling victim to various fraudulent schemes. 

Recognizing that not all individuals operate in the same way or for similar purposes, we’ve chosen to drill into the intricacies of fraud prevention with a focus on the following:

• Digital security best practices: Emphasis is placed on strong password management, secure online behavior, and the importance of data encryption.

• Social engineering awareness: The guide explores common social engineering tactics that exploit human psychology, such as phishing, smishing, and vishing, providing insights into how these attacks are crafted and how to identify them.

• Data protection strategies: It highlights the criticality of protecting personal information and outlines secure data handling practices, including secure disposal and minimizing unnecessary data sharing.

• Emerging fraud trends: The guide addresses evolving fraud techniques, such as caller ID spoofing and the exploitation of public Wi-Fi networks, offering strategies to mitigate these threats.

By adhering to the recommendations presented in this guide, consumers can enhance their personal security posture and contribute to a more secure digital environment for themselves and their organizations. Let’s dive into how to help protect yourself from fraud. 

Do’s

1. Be skeptical

Don’t assume that people or organizations are who they claim to be. Verify their identity and legitimacy before sharing personal information or engaging in transactions.

• Example: You receive an email from someone claiming to be from your bank, asking for your account login details.

• Prevention: Contact your bank directly through official channels to confirm the email’s authenticity. Remember, legitimate institutions will never ask for sensitive information via email.

2. Protect your personal information

Keep your Social Security number, bank account details, and other sensitive information confidential. Shred documents containing personal information before discarding them.

• Example: A thief steals your wallet containing your credit cards and driver’s license.

• Prevention: Carry only essential cards, and report lost or stolen cards immediately. Consider using an RFID-blocking wallet to prevent electronic theft.

3. Monitor your accounts regularly

Review your bank statements, credit card statements, and credit reports regularly for any suspicious activity.

• Example: You notice unauthorized charges on your credit card statement.

• Prevention: Set up account alerts for transactions and regularly check your accounts online. If you find discrepancies, report them immediately.

4. Use strong passwords and keep them secure

Choose strong, unique passwords for your online accounts. Use a password manager to help you generate and store them securely.

• Example: A hacker gains access to your online accounts using a weak, easily guessed password.

• Prevention: Use a combination of upper and lowercase letters, numbers, and symbols for your passwords. Enable two-factor authentication whenever possible.

5. Be cautious when using public Wi-Fi

Avoid accessing sensitive information, such as bank accounts, while using public Wi-Fi. Use a virtual private network (VPN) to encrypt your internet connection.

• Example: A fraudster intercepts your data while you’re using public Wi-Fi at a coffee shop.

• Prevention: Use a VPN to create a secure connection. Limit the type of activities you perform on public Wi-Fi.

6. Do stay informed about common scams

Keep up-to-date on the latest scams and fraud trends. Be aware of phishing emails, smishing texts, and vishing calls.

• Example: You receive a text message claiming you’ve won a prize and asking you to click a link.

• Prevention: Be wary of unsolicited messages or calls. Don’t click on links or download attachments from unknown senders. Verify the sender’s identity through official channels.

Don’ts

Clearly, proactive measures are crucial, but also knowing what not to do is equally important. Let’s look at critical “Don’ts” – actions you should avoid to minimize your vulnerability to scams and fraud. Consider this an essential chapter in your digital self-defense guide.

1. Don’t share personal information with unsolicited callers or emailers

Never give out personal information, such as your Social Security number or bank account details, to someone who contacts you unexpectedly.

• Example: You receive a phone call from someone claiming to be from the IRS, threatening legal action if you don’t provide your Social Security number.

• Prevention: Hang up and contact the IRS directly through their official website or phone number to verify the call’s legitimacy.

2. Don’t click on links or attachments in suspicious emails or text messages

Be wary of emails or text messages from unknown senders. Don’t click on any links or open any attachments unless you’re sure they’re safe.

• Example: You receive an email that appears to be from a delivery company, asking you to click a link to track your package.

• Prevention: Hover your mouse over the link to see the actual destination address. If it looks suspicious, don’t click it. Contact the delivery company directly through their official website or phone number.

3. Don’t fall for “too good to be true” offers

Be skeptical of offers that seem too good to be true, such as free prizes, incredible investment opportunities, or debt elimination schemes.

• Example: You receive an email promising you a large sum of money if you pay a small upfront fee.

• Prevention: Remember the adage, “If it sounds too good to be true, it probably is.” Research any offer thoroughly before committing to it.

4. Don’t give in to pressure tactics

Don’t let anyone pressure you into making a quick decision. Take your time to consider your options and do your research.

• Example: A salesperson pressures you to sign a contract for a product or service immediately.

• Prevention: Don’t be afraid to walk away or ask for more time to consider the offer. Consult with a trusted friend or advisor before making a decision.

5. Don’t trust caller ID

Caller ID can be spoofed, meaning the number displayed may not be the actual caller’s number. Don’t rely solely on caller ID to verify the caller’s identity.

• Example: You receive a call from a number that appears to be from your local police department, but it’s actually a scammer.

• Prevention: If you receive a suspicious call, hang up and call back the organization through their official phone number to verify the call’s authenticity.

👉 What to Do if a Scammer Has Your Number

6. Don’t carry your Social Security card with you

Only carry your Social Security card when absolutely necessary. Store it in a secure location at home.

• Example: You lose your wallet containing your Social Security card.

• Prevention: Memorize your Social Security number and keep the card in a safe place. Consider using a digital secure storage option for sensitive documents.

Staying Ahead in the Fight Against Fraud

Navigating digital services requires a vigilant and informed approach. By integrating these “Do’s and Don’ts” into your daily routines and online interactions, you significantly fortify your defenses against fraud. Remember, fraudsters are constantly evolving their tactics, so staying informed and adapting your security practices is crucial.

Think of fraud prevention as an ongoing process, not a one-time event. Regularly review your online security habits, stay informed about new scams, and trust your instincts. If something feels off, it probably is. By being proactive and informed, you can confidently navigate the digital landscape and protect yourself from the ever-present threat of fraud.