Fraud Prevention

6 Fraud Prevention Tips to Protect Your Money and Personal Information

People trying to scam us has become a strangely ordinary part of everyday life in recent years. You’ve probably experienced it yourself: a text message that appears to come from Amazon, a phone call claiming to be from your credit union, an email asking you to “confirm” your account details.

The methods change, but the goal is always the same: gaining access to your personal information or financial accounts.

The good news is that most scams rely on predictable tactics. By building a few simple habits, you can significantly improve your fraud prevention strategy and reduce the risk of becoming a victim.

Here are six practical ways to strengthen your financial fraud prevention habits.

1. Use Strong Passwords and Enable Two-Factor Authentication

Your passwords are the first line of defense against account fraud. If you reuse the same password across multiple websites, a single data breach could give criminals access to several accounts at once.

For example, if a retailer or social media platform experiences a breach, scammers may try those same login credentials on banking or payment apps.

A better approach:

  • Use strong passwords that are unique for each account.

  • Consider a password manager to securely store them.

  • Turn on two-factor authentication whenever it’s available.

Two-factor authentication requires an additional step, such as entering a code sent to your phone. Even if someone steals your password, this extra layer can stop an account takeover attempt.

 

2. Be Skeptical of Urgent Messages

Scammers rely on urgency to get people to act without thinking.

You might receive a message claiming:

  • “Your Amazon account has been locked.”

  • “Suspicious activity detected on your bank account.”

  • “Your Netflix payment failed. Click here to update billing.”

These messages often include links to convincing fake websites designed to steal login information.

Whenever you receive a message like this, pause before responding. Instead of clicking the link, go directly to the company’s official website or mobile app to check your account.

Developing this habit is one of the easiest ways to prevent fraud before it starts.

 

3. Never Share Verification Codes

One of the fastest-growing scams involves criminals asking for one-time verification codes.

Here’s how it often works:

A scammer calls pretending to be from your financial institution. They say they’ve detected suspicious activity and need to verify your identity. Meanwhile, they trigger a login attempt that sends a one-time code to your phone.

Then they ask you to read that code back to them.

What they’re actually doing is using that code to access your account.

Remember:

  • Never share verification codes with anyone.

  • Financial institutions and other legitimate companies will not ask for them over the phone, email, or text.

Protecting these codes is an important part of account fraud protection.

 

4. Avoid Clicking Links in Unexpected Emails or Texts

Many scams today fall under the category of phishing attempts. Phishing occurs when criminals send messages designed to trick you into visiting a fake website or sharing personal information.

These messages may appear to come from companies like:

  • PayPal

  • Apple

  • UPS

  • Amazon

A text might say your package couldn’t be delivered and ask you to confirm your address. An email might warn that your Apple ID was used to make a suspicious purchase.

In reality, the link leads to a fake login page.

To reduce your risk of digital fraud issues:

  • Avoid clicking links in unexpected messages.

  • Access accounts directly through the official website or mobile app.

  • Delete suspicious emails and texts immediately.

 

5. Monitor Your Accounts Regularly

One of the most effective fraud protection practices is also one of the simplest: Check your accounts often.

Fraudsters frequently start with small charges, sometimes just a few dollars, to see if a stolen card number works before attempting larger transactions.

Make it a habit to:

  • Review account transactions weekly.

  • Look for unfamiliar purchases or withdrawals.

  • Set up alerts for unusual account activity.

Members using online banking and mobile banking can easily monitor transactions and receive alerts when activity occurs.

These tools play a key role in credit union and bank fraud prevention by helping you catch suspicious activity early.

 

6. Report Suspicious Activity Immediately

If something doesn’t look right, act quickly.

Whether it’s an unfamiliar transaction, a suspicious phone call, or a lost debit card, reporting the issue immediately can help stop further damage.

If you suspect fraud:

  • Contact your financial institution right away.

  • Freeze or cancel compromised debit or credit cards.

  • Change passwords for affected accounts.

  • Continue monitoring your transactions closely.

If your card is lost or stolen, report it as soon as possible to prevent additional charges.

Fast action is one of the most important steps in credit card fraud prevention and protecting your accounts.

 

Stay One Step Ahead of Fraud

Scammers constantly adapt their tactics, but most successful scams rely on the same basic tricks: urgency, impersonation, and requests for sensitive information.

By strengthening passwords, avoiding suspicious links, and monitoring your accounts regularly, you can dramatically reduce your risk of identity theft, phishing scams, and other forms of financial fraud.

For more ways to protect your account from fraud, visit CME Federal Credit Union’s fraud prevention resource page. You’ll find additional guidance on recognizing scams and securing your financial information.

Finances Made SimpleCassie Gress