Fraud is when someone is intentionally deceptive in order to gain your money and/or information. Types of fraud include tax fraud, credit card fraud, wire fraud, securities fraud, and bankruptcy fraud. Below you can find some tips for how you can prevent fraud.

Make sure you know who you send money to and who you receive money from

If you are conducting a transaction with a seller, charity, company, or organization, you can make sure that it is a credible institution by checking it in the Better Business Bureau. You can also try calling the number on the institution’s website to make sure it leads to the correct institution.

Pay using safe methods

Paying by credit card is the safest way to pay for online purchases because you can dispute the charges if you never got what you ordered or if the services you paid for were misrepresented. If you report a charge on your credit card quickly, most credit card companies will remove the charges completely. 

If you are not paying by credit card, you may consider paying with a cashier’s check or credit card. Learn more about these options and how they can help prevent fraud. 

Protect your personal information

Some companies may call or send you an email saying that they need to verify your personal information. A good rule of thumb is to not provide your credit card or bank account number unless you are paying for something and know who you are sending payment to. Similarly, do not give your social security number unless you are applying for credit. Learn more about how to spot phishing scams.

It is also a good idea to be cautious of who you are giving your phone number or email information to. Learn more about how and why to protect your personal information.

You can reduce the number of unwanted telemarketing calls you receive by registering for the Do Not Call Registry with the Illinois Attorney General. If you sign up, you will still be able to receive calls from organizations you have an established business relationship with as well as calls for which you have given prior written consent. Signing up for the registry will help reduce commercial and unsolicited advertisements only. To register, visit the Federal Trade Commission website or call (888) 382-1222 (TTY: (866) 290-4236). 

Be careful with unsolicited emails

More often than not, unsolicited emails, or emails from people, companies, or organizations you don't know, are fraudulent. Sometimes, unknown senders may ask you to verify that they are emailing a working email address which will lead to more emails if you reply. Additionally, you should not click any links or open any attachments from these senders.The best thing to do is to delete those emails or report them as spam.

Watch out for scammers who want to pressure you

Real companies and charities will usually give you time to make a decision. One way to recognize a scam is if they tell you that you need to act immediately, or they are really insistent and won’t take “no” for an answer. The best way to proceed is to take the time to verify who is asking for money before your pay. Learn about some more red flags to look out for. 

Get all of the details about the offer

A scammer may reach out to you with promises of easy money, but it is good to remember that in these cases, if an offer seems too good to be true, it probably is. Before buying something, make sure you get all of the details about the product or service. These details should be the total price, the delivery time, the refund and cancelation policies, and the terms of any warranty. If you don’t get a clear answer on these questions, then you might be dealing with a scammer. 

Check your credit report

Make sure you check your credit report regularly. If you see incorrect information on your credit report, you can dispute those items. You can request free copies of your credit report once a year. If you are the victim of identity theft, you can get free copies of your reports. Learn more about identity theft. It is also a good idea to be cautious about offers for credit monitoring services. Unless you’re a victim of serious and ongoing identity theft, it may not be worth your money to pay extra for a credit monitoring service. You can purchase copies of your credit report any time for about $9 through Equifax, Experian, or TransUnion. 

Protect your social media

An important part of preventing fraud is protecting your privacy. You can do this by:

• Reviewing the privacy settings on your social media and modifying them
• Limiting the amount of biographical information you reveal on social media and limiting the amount of biographical information displayed on your social media (like your birthday, for example)
• Never putting sensitive information on social media, like your social security number, bank account information, or other information. Sometimes this can happen if you upload a picture and catch some sensitive information, like a piece of mail, in the background. 
• Not accepting friend or follower requests from people you don’t know well
• Using a strong password for you accounts
• If you have your social media on your phone, by making sure your phone is password protected in case it is stolen or you lose it
• Being cautious of accessing your accounts on a public, wireless network. It is very easy for someone to eavesdrop on Internet traffic, including passwords and other sensitive data, on a public wireless network.

Specific resources for military and senior citizens

The Securities and Exchange Commission has released guides specifically for people who were or are in the military, and senior citizens regarding fraud that are worth looking into if you fit into one of the categories.

Where can I go for help?

If you think you have encountered one of these frauds, please contact the SEC, FINRA, or the Illinois state securities regulator to report the fraud and to get assistance.

U.S. Securities and Exchange Commission
Telephone: (800) 732-0330
Fax: (202) 772-9295

Financial Industry Regulatory Authority (FINRA)
Telephone: (301) 590-6500
Fax: (866) 397-3290

North American Securities Administrators Association (NASAA)
Telephone: (202) 737-0900
Fax: (202) 783-3571