Financial Wellness
Fraud Prevention Tips to Protect Your Accounts
If you believe no financial account is safe from scams and fraud these days, you aren't wrong. In fact, 30% of financial institution members experienced fraudulent account activity in the past year, according to a study by J.D. Power, the consumer analytics firm. This includes sending money to scammers using a payment app, via unauthorized purchases, or having money directly stolen from their accounts.
Analysts at J.D. Power said fraud is proliferating in an era of peer-to-peer (P2P) payment apps and increasingly impersonal transactions.
"You would never, as a consumer, take $100 and hand it to a stranger. But in many ways, that's how P2P works," said Jennifer White, senior director of banking and payment intelligence at J.D. Power.
Major data breaches give scammers access to personal information such as Social Security numbers and other consumer data. A scammer can call a customer and pretend to be a worker from a bank's fraud department because they're armed with enough knowledge to sound convincing.
Surprisingly, those under the age of 40 were more vulnerable due to their frequent use of digital payment apps, despite being tech-savvy "digital natives."
The study also indicated members really appreciate it when financial institutions solve a fraud case, with 92%, saying they were "likely to reuse" their institution after it resolved a case of fraud.
The J.D. Power report found that while 46% were prompted by their financial institution to take fraud-prevention measures in the past 90 days, 25% did nothing at all—leaving themselves vulnerable to scams and thefts by relying only on reactive measures like reviewing transactions after the fact.
That's better than nothing, experts say, but not much. Checking your transactions is reactive, rather than proactive, and doesn't really protect your account.
Obviously, if you receive a warning that your password was compromised in a breach, find a new one.
To set alerts with Tower accounts, go to the "Account Services" section in Digital or Online Banking and select "Alerts & Notifications." You can set alerts for automatic withdrawals, transactions, cleared checks and more.
More institutions are using biometrics, such as facial recognition and fingerprint software, to prove it's you.
While it takes a few extra seconds, the added protection is invaluable.
For Tower accounts, you can sign up for eStatements under the "Account Services" tab in Digital Banking.
"Be careful with your phone," said Ashwin Raghu, director and head of innovation and scam policy at Citi. "Because the phone is really the key to your kingdom."
It's also smart to never leave your phone lying around unlocked, such as on a table at a restaurant, where people can access it.
Tower will never contact you asking for account information. Never give out your credentials, card number, or security code. If you are not sure if a message or call is legitimate, do not reply.
If ever in doubt, call our fraud hotline at 866-90-TOWER (86937).
Analysts at J.D. Power said fraud is proliferating in an era of peer-to-peer (P2P) payment apps and increasingly impersonal transactions.
"You would never, as a consumer, take $100 and hand it to a stranger. But in many ways, that's how P2P works," said Jennifer White, senior director of banking and payment intelligence at J.D. Power.
Major data breaches give scammers access to personal information such as Social Security numbers and other consumer data. A scammer can call a customer and pretend to be a worker from a bank's fraud department because they're armed with enough knowledge to sound convincing.
'It's not just happening once'
The study revealed fraud often strikes repeatedly—45% of victims had multiple incidents of fraud within a year.Surprisingly, those under the age of 40 were more vulnerable due to their frequent use of digital payment apps, despite being tech-savvy "digital natives."
The study also indicated members really appreciate it when financial institutions solve a fraud case, with 92%, saying they were "likely to reuse" their institution after it resolved a case of fraud.
Members don't always safeguard their own accounts
The study's findings suggest financial institutions are investing heavily to be more vigilant about fraud, but some members don't take proactive steps themselves.The J.D. Power report found that while 46% were prompted by their financial institution to take fraud-prevention measures in the past 90 days, 25% did nothing at all—leaving themselves vulnerable to scams and thefts by relying only on reactive measures like reviewing transactions after the fact.
That's better than nothing, experts say, but not much. Checking your transactions is reactive, rather than proactive, and doesn't really protect your account.
Tips to use
It seems harder than ever to keep ahead of the scammers. Nonetheless, here are some tips for members to protect their accounts.Tip #1: Visit your security center
Go to your credit union's website or app and look for a security center, "a location on the app where all your security settings can be viewed in one place," White said.Tip # 2: Manage your passwords
Avoid using simple passwords such as your birthday, or your dog's name. Don't use the same password for every account. Update them frequently. Many people use password manager programs that generate strong passwords and store them securely.Obviously, if you receive a warning that your password was compromised in a breach, find a new one.
Tip #3: Set up alerts
Enable notifications for any important account activities. Your financial institution offers customizable alerts for password changes, large transactions, and more.To set alerts with Tower accounts, go to the "Account Services" section in Digital or Online Banking and select "Alerts & Notifications." You can set alerts for automatic withdrawals, transactions, cleared checks and more.
Tip #4: Set up authentication
This extra security step verifies your identity beyond just a password. It may involve entering a code via text or email when you try to log in, in case someone has stolen your password.More institutions are using biometrics, such as facial recognition and fingerprint software, to prove it's you.
While it takes a few extra seconds, the added protection is invaluable.
Tip #5: Update your app
Make sure you have the most recent version of your financial institution's app on your smartphone. The app will usually tell you when it's time to update.Tip #6: Go paperless
Paperless correspondence saves time and effort. It's also safer, security experts say, because there's no paper trail for a criminal to follow.For Tower accounts, you can sign up for eStatements under the "Account Services" tab in Digital Banking.
Tip #7: Guard your device
If you're buying something on a payment app, complete the transaction yourself. Don't hand your phone to the person making the sale."Be careful with your phone," said Ashwin Raghu, director and head of innovation and scam policy at Citi. "Because the phone is really the key to your kingdom."
It's also smart to never leave your phone lying around unlocked, such as on a table at a restaurant, where people can access it.
Tip #8: Beware of the unexpected
Be careful about answering an email, call, or text that claims to be from your financial institution. The American Bankers Association lists five red flags:- A message with a link you weren't expecting
- Anything using urgent or fretful language
- Any attachment
- Any request for personal information, like a PIN or password
- Anything that pressures you to send money on an app
Tower will never contact you asking for account information. Never give out your credentials, card number, or security code. If you are not sure if a message or call is legitimate, do not reply.
If ever in doubt, call our fraud hotline at 866-90-TOWER (86937).
Resources: USA Today
