Two Sides, One Shield: A Joint Effort in Fraud Prevention
HIGHLIGHTS
- With U.S. fraud losses on the rise, partnerships between banks and consumers are critical, particularly when it comes to education and vigilance to combat increasingly sophisticated financial scams
- Citi is empowering clients with actionable fraud prevention tips, such as using multi-factor authentication and independently verifying financial requests, to protect against the urgent threat of scams and safeguard personal data
- Remember to keep an eye out for red flags, like urgent payment demands, and to act fast if compromised by contacting your bank immediately and reporting incidents to the FBI and FTC
Protecting ourselves from scams and fraud should be on everyone’s watch list. Recent data from the Federal Trade Commission underscores this urgency, revealing that consumers in the United States reported a staggering loss of over $12.5 billion to fraud in 2024 alone—a concerning 25% increase from the previous year.
Financial institutions, like Citi, deploy extensive measures to protect customer accounts from being defrauded. These range from multi-factor authentication protocols to detection systems that flag unusual spending or transaction patterns, prompting proactive customer outreach. Because bad actors continue to attack in new and innovative ways, the financial sector must remain perpetually on guard against constantly shifting fraudsters.
Consumers are vital partners with their financial institutions in preventing fraud. In these ever- evolving scenarios, uneducated customers may be manipulated to initiate transactions and willingly transfer their own funds to fraudsters. Deceptions like this make it crucial for consumers to stay informed and vigilant.
At Citi, education is a cornerstone of our protection strategy. We provide information and resources to our clients about current scams and fraud trends in addition to encouraging them to ask questions about any suspicious or unfamiliar outreach.
Fraudsters often revive older tactics, each time with heightened sophistication. For instance, a particular swindle making a comeback involves the sending of legitimate-looking business documents on fake letterhead, complete with stolen executive signatures. While it all looks real, the urgency in the wording or an immediate call to action are key indicators distinguishing a genuine request from a fraudulent one. Fraudsters and scammers are constantly evolving their tactics, making it crucial for consumers to stay watchful.
Here are 10 essential tips to help you safeguard your personal information and financial well-being.
- Trust Your Gut: Pause Before You Act. Scammers thrive on urgency. If a call, text or email feels off, it probably is. Take a moment to think critically and never be rushed into a decision. If in doubt, talk to a trusted contact or your bank before proceeding.
- Don't Take the Call, Make the Call. Received an unexpected message from someone claiming to be from your bank or a government agency? Hang up. Do not use the contact information they provide. Instead, find the official phone number on their website or the back of your card and call directly to verify the request. This applies to all unsolicited contact.
- Double Up Your Security with Two-Factor Authentication. Enable two-factor or multi-factor authentication (2FA/MFA) on all your sensitive accounts. This extra step, for example a code sent to your phone, is one of the most effective ways to protect your accounts, even if your password is stolen.
- Be Your Own Watchdog: Check Your Accounts Daily. Dedicate a couple of minutes each day to review your bank and credit card transactions. Early detection of fraudulent activity allows for quicker reporting and limits potential damage. Set up account alerts for immediate notifications.
- Guard Your Personal Data Like Cash. Your Social Security number, bank PINs, passwords and authorization codes are extremely valuable. Legitimate organizations will never ask for this sensitive information via unsolicited texts or emails. Never verbally share your debit PIN or online passcode, even with someone claiming to be from your bank.
- Create Long, Strong and Unique Passwords. Your password is your primary defense. Avoid easily guessable information and use unique, strong passwords for each financial account. This prevents criminals from accessing all your accounts if one is compromised.
- Know the Red Flags: Urgency and Unusual Payments. Be suspicious of anyone demanding immediate payment, especially through irreversible methods like wire transfers, Zelle or gift cards. High-pressure tactics and offers that seem too good to be true are classic scam indicators.
- Verify Before You Buy: Vet Online Retailers. Before making a purchase from an unfamiliar website, validate the URL and look for a secure connection (padlock icon). Scammers often create sophisticated spoof websites, so search for reviews of the retailer. If a deal seems too good to be true, it probably is.
- Use Safer Payment Methods. When paying by check, use indelible gel ink and drop it in a secure mailbox close to pickup time. For online payments, opt for trusted digital payment methods that offer better security and fraud protection than direct, irreversible transfers.
- Act Fast if Compromised: Contact Your Bank Immediately. If you suspect you've been scammed, time is critical. Contact your bank and credit card companies immediately to report the fraud, block your accounts and dispute the charges. After securing your accounts, report the incident to law enforcement, such as the FBI's Internet Crime Complaint Center at ic3.gov and the Federal Trade Commission at reportfraud.ftc.gov.
Staying vigilant and informed is your best defense. By following these tips, you can significantly reduce your risk and protect your financial future.