Blog Highlights:
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With financial fraud among young people under 20 exceeding $210 million last year, safeguarding financial information is crucial.
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Teens face phishing scams through online games and deceptive social media accounts, emphasizing the need for heightened vigilance.
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Utilizing contactless payments and digital wallets protects against data breaches and card cloning.
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Encouraging strong passwords, secure Wi-Fi connections, and regular account monitoring can help secure financial information against fraud.
The Importance of Safeguarding Financial Information
In the technology-driven world we live in today, safeguarding financial information is more important than ever. And this applies not only to adults, but to today’s teens as well. In fact, according to a recent FBI report, financial fraud victims under the age of 20 lost over $210 million last year alone!
If you are old enough to have a bank account of your own or carry around your parent’s debit card, it is important to safeguard all financial information to avoid being scammed.
No one is safe from those who make a living by stealing your financial information via online scams and fraud. Making good financial safeguarding habits now to protect this valuable information may just save you from waking up one morning to an empty bank account.
Understanding the Risks: Common Threats to Financial Security
Even though you may think you are safeguarding your financial information, there are a variety of high-tech phishing and online scams created just to take your money. Even the smartest adult or teen is at risk for fraud. Here are some of the sneaky ways internet thieves have created to drain your bank account.
Phishing and Online Scams:
- Online Gaming: Those tempting in-app purchases advertised when gaming online include scammers that are trying to trick gamers into giving them debit card info and downloading malware for bonuses that really don’t exist. Don’t fall for it! Only make purchases via the game’s manufacturer for safeguarding financial information.
- Social Media Influencers: Since teens are huge fans of online influencers, scammers often use phishing scams and create fake accounts pretending to be the real influencer. They even offer fake contests where winners are asked to pay a fee or enter their bank account info to claim the prize. Be smarter than scammers by making sure you are following the real account and never send money or give your bank account info.
Debit Card Fraud and Its Prevention:
- Contactless Payments: Your debit card leads directly to your bank account and when scammers get that information, your money can be stolen. This can happen even when they don’t have your debit card in their hands! From data breaches and posing as a real business to actually hacking into accounts, these scammers are clever. Using contactless payment options is safer because the chip offers encryption and data technology that protects against these fraudsters.
- Digital Wallets: Using a digital wallet for both your debit card and student credit card is helpful because no card information is stored on your phone, and your card number is not sent to merchants. Using Google and Apple Pay can reduce the risk of theft and card cloning.
Safeguarding Your Financial Information
Here are some tips to help with safeguarding your financial information to avoid scammers.
- Using Strong Passwords and Account Security: Anytime you are entering financial information of any kind online, it is important to ensure you have a safe and secure Wi-Fi connection. Also, having a strong password will help keep your money safe. Microsoft suggests using 14 characters using a combination of upper and lower case letters, numbers, and symbols. Never use your name or birthday and be sure to change passwords every year.
- Setting Up Alerts and Monitoring Accounts: Allegiance offers advanced features to help safeguard your accounts, including account alerts and card control options. Setting up these banking alerts that are delivered to your phone allows you to monitor the transactions and account changes for suspicious activities so you can take immediate action for safeguarding against fraud. The card control option allows you to freeze the debit card so no purchases can be made until the account is secure again.
Even the most careful account holders are sometimes victims of fraud. Knowing what to do when mistakes happen is key.
What to Do If You Misplace Your Debit Card
If you happen to lose your debit card, immediately take the following steps:
- Lock the card via Allegiance's mobile banking app to prevent any fraudulent activity.
- Report the missing/stolen card as soon as possible to your credit union via phone.
For an Allegiance Debit Card:
Please call us at 405-789-7900 as soon as possible. If after hours or on weekends, call 1-888-263-3370.
For an Allegiance Credit Card:
Please call 1-800-558-3424. For hearing impaired members, call our TTD line at 1-888-352-6455. If you are outside the U.S. call 701-461-1556 COLLECT.
- Keep a close eye on your account to ensure there are no additional fake charges.
Also, note that adding your debit card to your digital wallet ensures you still have access to your money until you get a new card, which is important.
Proactive Financial Practices
It is crucial to be proactive about financial practices when safeguarding your bank account. These tips can help keep your money safe.
- Regular Check-Ins on Financial Health: Make it a point to review all of your bank statements for any unauthorized transactions regularly. Understanding how to read your financial statements and how to recognize typical spending patterns will alert you to any suspicious behavior.
- Understanding the Importance of Privacy: When it comes to avoiding online scams, safeguarding your sensitive financial information is important at all times. Be aware of sharing sensitive information to avoid scams. Also, pay attention to making sure you are using a secure website, especially when in public to keep account details private.
Financial Safeguarding Tips for Teens
- Set up text alerts to monitor bank accounts for fraud.
- Keep up to date with the latest phishing and online scam tactics so accounts are safe.
- Monitor bank accounts for fraudulent purchases regularly.
- Make sure all bank account info is kept private.
- Create strong passwords to keep bank accounts secure.
- Only use secure Wi-Fi when accessing bank accounts and other important info.
- Be aware when shopping, gaming, and following social media influencers online, as these are popular scamming opportunities for thieves.
How Parents Can Help Teens Avoid Scams
Parents play a pivotal role in helping their teens navigate the complexities of financial security. By actively monitoring account activity, educating them about the prevalent scams, and ensuring they are informed about safe online practices, parents can significantly reduce the risk of their teens falling victim to fraud. Encouraging the use of financial tools like alerts from banking services and engaging in open conversations about the importance of privacy and vigilance can empower teens to manage their finances safely and responsibly.
- Parents should monitor a teen’s account activity.
- Make teens aware of current frauds and scams and teach them how to avoid them.
- Read this article with your teens!
Allegiance is here to help! If you are looking for more ways to avoid identity theft and prevent fraud, consider browsing more informational blogs in our Resource Center.
Keep educating your teens with our Swipe Safely: Teen Debit Card Checklist!