Consumers increasingly rely on computers, web-enabled devices, and the internet for everything from shopping and communicating to banking and bill-paying. While there are a number of benefits of using web services -- faster and more convenient services, for example -- bank customers should also be aware of the risks.
- Cybersecurity Basics
- Tips to Avoid Identity Theft
- Tips to Avoid Frauds and Scams
- How to Report Identity Theft, Frauds, and Scams
- Additional Resources
Cybersecurity Basics
Common cyber-related crimes include identity theft, frauds, and scams. Identity theft is a crime in which someone wrongfully obtains and uses another person's personal data to open fraudulent credit card accounts, charge existing credit card accounts, withdraw funds from deposit accounts, or obtain new loans. A victim's losses may include not only out-of-pocket financial losses but also substantial costs to restore credit history and to correct erroneous information in their credit reports.
In addition to identity theft, every year millions of people are victims of frauds and scams, which often start with an email, text message, or phone message that appears to be from a legitimate, trusted organization. These messages typically ask consumers to verify or update personal information or they direct consumers to bogus websites (such as for credit repair services) in the hopes that consumers will visit the site and enter their personal information.
Additional information about various forms of cyber crime is provided in the following FDIC Consumer News articles:
- Beware, It’s a Scam! (October 2020)
- Scammers Pretending to be the FDIC (March 2020)
- When a Criminal's Cover Is Your Identity: Minimizing the Risk of Identity Theft (Summer 2018)
Tips to Avoid Identity Theft
The best protection against identity theft is to carefully guard your personal information. For example:
- Do not share personal information over the phone, through the mail, or over the internet unless you initiated the contact or know the person you are dealing with.
- Be suspicious if someone contacts you unexpectedly online and asks for your personal information. It doesn’t matter how legitimate the email or website may look. Only open emails from people or organizations you know and, even then, be cautious if they look questionable. Be especially wary of fraudulent emails or websites that have typos or other obvious mistakes.
- Don’t give out personal information in response to unsolicited requests. Be particularly careful about to whom you give your Social Security number, financial account information, and driver’s license number.
- Shred old receipts, account statements, and unused credit card offers.
- Choose PINs and passwords that would be difficult to guess and avoid using easily identifiable information, such as your mother’s maiden name, birth dates, the last four digits of your social security number, or phone numbers.
- Pay attention to billing cycles and account statements and contact your bank if you don’t receive a monthly bill or statement. Identity thieves often divert account documentation.
- Review account statements thoroughly to ensure all transactions are authorized.
- Guard your mail from theft, promptly remove incoming mail, and do not leave bill payment envelopes in your mailbox with the flag up for pick up by mail carrier.
- Obtain your free credit report annually and review your credit history to ensure it is accurate. (Click here to read more about credit reports and credit scores.)
- Use an updated security program to protect your computer.
- Be careful about where and how you conduct financial transactions. For example, don’t use an unsecured Wi-Fi network because someone might be able to access the information you are transmitting or viewing
Tips to Avoid Frauds and Scams
Consumers should always exercise caution when it comes to your personal and financial information. The following tips may help prevent you from becoming a fraud victim.
- Be aware of incoming email or text messages that ask you to click on a link because the link may install malware that allows thieves to spy on your computer and gain access to your information.
- Be suspicious of any email or phone requests to update or verify your personal information because a legitimate organization would not solicit updates in an unsecured manner for information it already has.
- Confirm a message is legitimate by contacting the sender (it is best to look up the sender’s contact information yourself instead of using contact information in the message).
- Assume any offer that seems too good to be true, is probably a fraud.
- Be on guard against fraudulent checks, cashier’s checks, money orders, or electronic fund transfers sent to you with requests for you to wire back part of the money.
- Be wary of unsolicited offers that require you to act fast.
- Check your security settings on social network sites. Make sure they block out people who you don’t want seeing your page.
- Research any “apps” before downloading and don’t assume an “app” is legitimate just because it resembles the name of your bank or other company you are familiar with.
- Be wary of any offers that pressure you to send funds quickly by wire transfer or involve another party who insists on secrecy.
- Beware of disaster-related financial scams. Con artists take advantage of people after catastrophic events by claiming to be from legitimate charitable organizations when, in fact, they are attempting to steal money or valuable personal information.
How to Report Frauds and Scams
If you think you are a victim of a fraud or scam, contact your state, local, and/or federal consumer protection agency. State consumer protection agencies could be found using the usa.gov/state-consumer webpage. Federal consumer protection agencies include the Consumer Financial Protection Bureau and the Federal Trade Commission. You could also contact the FDIC or other Federal banking agency if there is a banking issue involved. Also, a local law enforcement officer may be able to provide advice and assistance. By promptly reporting fraud, you improve your chances of recovering what you have lost and you help law enforcement. The agency you contact first may take action directly or refer you to another agency better positioned to protect you.
Violations of federal laws should be reported to the federal agency responsible for enforcement. Consumer complaints are used to document patterns of abuse, allowing the agency to take action against a company.
People who have no intention of delivering what is sold, who misrepresent items, send counterfeit goods, or otherwise try to trick you out of your money are committing fraud. If you suspect fraud, there are some additional steps to take.
- Contact the Federal Trade Commission (ftc.gov). The FTC enters internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
- If the fraud involved mail or an interstate delivery service, contact the U.S. Postal Inspection Service (postalinspectors.uspis.gov). It is illegal to use the mail to misrepresent or steal money.
