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Bank Fraud: 10 Ways to Protect Yourself

With so many financial transactions being carried out online, bank fraud is extremely common. Due to the Covid-19 pandemic, many people are increasingly using banking services as a convenient way to manage your finances. However, this means an increased risk of fraud as criminals digitally leverage to steal financial information.

How Fraud Happens

Bank fraud is a financial crime that involves the illicit use of information and resources of a bank and its customers. This type of fraud includes:

  • Identity theft;

  • Use of stolen credit cards;

  • Forgery of checks;

  • Phishing by electronic means;

  • Any false activity aimed at financial gain is prohibited.

With the realization of the crime in question, criminals tend to use deceptive tactics to access private bank account information, such as passwords and others that are available at that time. Social engineering techniques may also be used by them in order to persuade bank account holders to provide such information.

Furthermore, fraud can occur in different ways, such as: fake emails, phone calls, malware, text messages and even through messaging apps.


The consequences are countless, both for institutions, clients and society in general. Some examples of these negative impacts are:

  1. Financial loss: Bank fraud results in direct financial loss to customers, who may have their accounts emptied and their credit cards misused. Banks also suffer from financial loss, due to the need to reimburse customers who were victims of the scam.

  2. Increased cost of security: With fraud, the security of financial systems becomes a matter of concern, as it leads to an increase in the cost of security measures such as encryption and protection against malware.

  3. Loss of confidence in the economy: Because of the frequency with which bank fraud can occur and because they are so large-scale, confidence in the economy as a whole tends to erode. This can lead to a drop in consumer and investor confidence, and therefore a negative effect on economic growth.

  4. Reputation damage: Frauds can undermine the reputation of bank branches, affecting their credibility with investors and customers. The result is likely to be lost business and a drop in market value.

  5. Social impact: Banking fraud can affect people from all walks of life, especially those with lower purchasing power, who may find it difficult to recover financially after being victims of this crime. This increases social inequality.

10 Ways to Protect Yourself

Bank fraud has significant financial, reputational and social consequences, which involve not only institutions, but also customers and society. Banks should invest in efficient protection measures and work together with authorities to fight the crime of fraud and protect customers. However, there are measures that, if adopted, will reduce someone becoming a victim of these scams. They are:

  1. Observe the veracity of emails and messages: Pay close attention to the senders of any content received, especially emails. In addition, messages may contain grammar and spelling errors. Avoid downloading unknown attachments and clicking on suspicious links.

  2. Be suspicious of offers that are too good and requests for personal information: Offers of investments or loans that have rates far below the market can be considered a scam. Information about yourself should never be provided through any contact that has not been made by the person himself.

  3. Use secure passwords: When creating passwords, enter combinations of letters, numbers and special characters. This will make them more secure, as well as strong, difficult for criminals to discover. Obvious passwords such as birthdays or numerical sequences are not recommended.

  4. Watch out for movements in the bank account: Get the need to regularly monitor the transactions that occur in the account, as well as any suspicious movements.

  5. Do not share personal information on the internet: Social networks that are part of the online environment are not the place where information about addresses, phone numbers and the like should be disclosed, as criminals can use them for fraud crimes.

  6. Keep your devices up to date: Your computer, smartphone and other devices should always have the latest security updates.

  7. Contact your bank immediately: Contact the branch as soon as possible to report the fraud. They will block the account and card and an investigation will be launched.

  8. Document the fraud: Keep a record of all suspicious transactions and any other relevant information, such as fake receipts, emails or text messages. This helps to substantiate your claim in the future.

  9. File a complaint: A complaint with the competent authorities such as Civil and Federal Police or Procon must be made, depending on the nature of the fraud.

  10. Update passwords: Passwords associated with bank accounts and other similar services, such as loans or investment accounts.

The faster the victim acts in case of fraud, the greater the chances of getting the money back and reducing the damage caused. From the suspicion of any unusual activity done on the account bank, you should immediately contact the financial institution for help and guidance.

Since it is an unpleasant and very common situation, unfortunately anyone is subject to being a victim of this type of scam, so it is extremely important to verify all movements made in the bank account and adopt preventive measures for security bigger.

In short, maintaining your own financial security is a shared responsibility between you and the institution. Be sure to keep your login information secret, check your accounts regularly, and promptly report any irregular activity to avoid financial loss.

Did you like our post? Leave your like and comment on the security measures you use.


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