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Step Up Your Safety With This Online Banking Fraud Prevention Checklist

Woman Victim Of Credt Card Fraud

Wondering how to protect yourself from online banking fraud? This checklist covers some of the keys to sidestepping scams.

Growing ID Theft Losses

According to a recent study co-sponsored by AARP and TransUnion, identity theft cost American adults a whopping $43 billion in 2023. And while roughly the same number of American consumers fell victim to identity theft over the course of 2023 as in the previous year — 15 million in 2023 vs. 15.4 million in 2022 — the total losses grew by 13% in 2023. This suggests that, once criminals gain unauthorized access to a victim’s financial or personal information, they’re aiming to steal larger amounts of money.

10 Ways To Protect Your Identity and Assets

Fortunately, though, consumers can take steps to safeguard themselves and increase the security of their financial assets. To protect yourself against bank fraud and identity theft, consider implementing the 10 powerful tactics on this fraud prevention checklist:

1. Be Aware of the Most Common Scams

By understanding and then recognizing the most common types of scams and banking fraud criminals employ online to steal consumers’ personal and financial details, you’ll be much less likely to fall victim to them. Some of the most frequently used ID theft scams include:

  • Phishing scams – Criminals use emails and text messages in an attempt to trick recipients into providing sensitive information such as passwords, credit card numbers and other personal and financial details. These scams often employ fake links or malicious attachments to get recipients’ information. We offer several helpful tips on how to protect yourself from phishing scams.
  • Tech support scams – The scammer tries to convince consumers that their smartphone, computer or other tech device is infected or has other issues that the criminal offers to “fix” — when the criminal’s true motive is to gain access to the victim’s accounts or sensitive information.
  • Prize and lottery scams – These seek to trick victims into paying a “processing fee” in order to claim an attractive (but non-existent) prize.

2. Keep Your Devices Well-Protected

To make sure your devices always have in place the latest protections against spyware and viruses, routinely download system updates and patches — or simply adjust your device settings to allow auto-installs when new patches and security updates become available.

3. Use Powerful Passwords

While simple passwords may be easier for you to remember, they’re also easier for hackers to crack. To better protect your accounts against intrusion and online banking fraud attempts, use lengthy passwords with a mix of uppercase and lowercase letters, along with symbols and numbers — and avoid using the same password across multiple accounts. We offer plenty of additional helpful tips on effective ways to protect yourself from cybercrime.

4. Avoid Providing Personal Info Via Email or Text

Legitimate businesses and organizations will almost never request sensitive information such as your account login information, credit card number or Social Security number via a text or email. Often, scammers will ask for such personal details while posing as business employees, government representatives or law enforcement personnel. To keep your information safe, always be skeptical of texts and emails asking for personal details. If you think a business or organization may legitimately need information from you, rather than replying to a text or an email, reach out to the business directly via an official phone number or email address. You can safely pass along any needed details once you’ve verified the request.

5. Consider Credit Monitoring

To help you keep a close eye on any lines of credit you’ve established — and to let you know when any new accounts may have been opened in your name — credit monitoring services track your credit reports and credit score. Then they keep you updated on any changes or suspicious activities. And while most credit monitoring services charge a monthly or annual fee, the unauthorized activities and online banking fraud attempts they help you prevent, and your peace of mind, can make the price worthwhile.

6. Be Skeptical About Sending Money

Before sending money to anyone — especially to a person, organization or business outside your list of trusted contacts — always verify that the request and requester are legitimate. Scammers will sometimes try to convince victims to send funds using fraudulent requests for payment, hoping the recipient will send money without performing due diligence first.

7. Vet Carefully

Before allowing any caregivers, personal assistants or household managers to gain access to your personal information, accounts or financial details, be sure to properly vet the individual first. Even better, when hiring such individuals, go through a bonded agency that employs a strict process to screen staff before putting them on any job.

8. Quickly Report Incidents of Fraud

If you find you have fallen victim to a scam or any sort of online banking or identity fraud, report the incident as soon as possible. For example, if you discover unrecognized charges on your credit card, report the suspicious charges to the card issuer right away. You can also report cases of fraudulent activity to the Federal Trade Commission, a federal consumer protection agency that works with other law enforcement officials to catch scammers and shut them down.

9. Tap Into Technology

Today’s technology offers a range of powerful tools that can help you keep your personal information and your financial assets safer. For example, mobile banking apps and digital banking platforms can give you real-time access to information about your account balances and transactions, allowing you to monitor for fraudulent activity. Many credit cards will allow you to sign up for push notifications that send you a message on your smartphone when any charges are made on your card. And tech tools like multi-factor authentication and biometrics can help prevent unauthorized access to your accounts.

10. Keep Your Contact Info Current

By keeping your contact information up to date with your bank, credit card issuer and other providers of financial services, these businesses and organizations will be able to contact you quickly when any fraudulent activities are suspected on your account. If the activities are legitimate, you can alert them to approve any charges, transfers, etc., that you’ve made — and if they’re not, the suspicious activities can be stopped.

Proudly serving South Carolina since 1933, Arthur State Bank offers accounts and services to meet a variety of financial needs. To help you achieve all your financial goals, the bank offers in-person service as well as a range of convenient digital solutions. To learn how Arthur State Bank can help you with banking needs ranging from checking and savings to retirement accounts, mortgages, other personal loans and more, visit arthurstatebank.com.

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AnnualCreditReport.com is the only source for free credit reports authorized by the federal government. Every 12 months, you can get a free copy of your credit report from each agency.

Your credit report has your credit history for all of your credit accounts as well as any credit inquiries and public record court information such as collections. In addition, the report provides personally identifiable information such as your name, address, and employment.

Be sure to carefully review all three reports to identify any problem areas that you may need to clean up prior to applying for a mortgage. If there is any incorrect information, follow the reporting agency’s rules to correct it or add a notation to the report to explain the situation.

Your FICO Score is a score combines data from several areas include payment history, the amount owed, length of credit history, new accounts. Many lenders use this score as a guide. This score is not provided as part of the free annual credit report.

Learn more about how your credit score impacts your ability to secure a loan.

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Couple looking over finances

Primary considerations for setting your housing budget require an assessment of your income, debt and current savings for the down payment on the home. The following are generally recommended guidelines; however, you should meet with an Arthur State Bank lender to get personalized mortgage information.

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Couple meeting with lender

The pre-qualification/pre-approval letter is included with any offer you make on a house to inform the seller that you have met with a mortgage lender and you are prepared to make an offer. The letter states that based on certain assumptions, the bank is prepared to lend you up to a specified amount of money for a home mortgage.

When choosing a loan officer, we recommend going local to work with someone who understands your community’s real estate market. This blog on first-time home purchases includes questions to ask your lender that may be helpful when preparing for your meeting.

Helpful Resources:

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Realtor shaking hands with a client

When a house is sold, the seller typically pays real estate commission to both the listing agent and the selling agent. It is extremely beneficial for the buyer to use their own real estate agent. Loan officers can often recommend selling agents in the area; ask your officer about realtor referrals when discussing your loan.

A good realtor will know the local market and can help you find an ideal home based on your budget, location and desired features. During your search, understand that you will most likely need to compromise on some items, so it’s important to identify your critical needs versus your wants.

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Couple searching online for a home

Additionally, when you start with the house search and work backwards, homes can often go off the market while you’re completing steps 1-4. While browsing homes immediately can be tempting, we recommend following these steps in order so that, once you find your dream home, you’ll be well-positioned to take action immediately.

When you find the home you want and you think you are ready to put an offer on it, you will want to make sure you have all the information you need to make a solid offer.

  • Evaluate the neighborhood.
  • Drive by the house at different times of the day.
  • Examine how other houses in the neighborhood are maintained.
  • Consider any potential traffic or other disruptive noise.
  • Is there ample parking for you and visitors?
  • Read the details in any Homeowner Association agreements (HOA fees and rules).

Make sure to do a preliminary check of house details:

  • Check the water:
  • Does it have good pressure?
  • How long does it take to get the water hot?
  • Is it well water or city water?
  • Turn light switches on and off.
  • Open and close doors and windows to make sure they work properly.
  • Review previous utility bill expenses.
  • Consider the property tax bill.

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Family meeting with realtor at new house

When writing an offer contract, be sure to pay attention to all of the details.

Offer Price:

Your agent should do a market analysis that pulls data on recently sold comparable houses. The best comparisons will come from the same neighborhood.

If you are asking for the seller to pay some of the closing costs, remember that this cost plus the sales commission determines the net amount you are offering the seller for the house.

Work with your agent on your negotiation strategy. There are many things to consider, such as how badly you want this particular house, whether it is a buyer’s or seller’s market and an assessment of the seller’s motivation to get the property sold.

There isn’t one best strategy.

Be sure to document in writing everything you want included with the house, such as appliances, etc. Your agent should guide you through the contract step-by-step.

Contingencies:

  • Home inspection.
  • Mortgage.
  • Final walk through (24 hours prior to closing).

Proposed closing date. Typically, this is 30-45 days from an accepted offer.

A good-faith deposit is required for the offer. This is typically between 1-10% of the purchase price of the house. The deposit is kept in escrow until closing and the money is applied to the purchase price of the house at closing. If the house does not close due to one of the contingency clauses, the buyer receives their money back. However, if the buyer decides not to close on the property, the seller may get the deposit money.

Attach your pre-approval letter to the offer.

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Two people in professional meeting

The clock starts ticking for everything documented in the contract, including mortgage application, inspections and closing date.

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Woman advising other woman on mortgage application

You will need to decide which mortgage to select prior to the application.

Plan for the following potential fees:

  • Application fee (many banks and mortgage companies charge an application fee; however, there is not an application fee at Arthur State Bank).
  • Credit check.
  • Appraisal (may be paid at closing).
  • Loan origination fee (paid at closing).

Once you have approval for your loan, make sure you don’t change anything that will impact the status of your mortgage. Banks do a final check on credit and jobs just prior to closing, so now is not the time to change jobs or make another purchase on credit such as a car or furniture.

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Home inspector going over findings with home owner

Depending on the size of the house, an inspection can cost on average between $300 to $1000.

Many real estate contracts specify how problems uncovered in the inspection will be resolved, up to a certain dollar amount. Should necessary repairs exceed that amount, the buyer has the option to cancel the contract without penalty and receive their deposit money back. Another option is for the buyer and seller to renegotiate who will pay for additional repairs.

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Woman happily holding keys to her new home
  • Homeowner’s insurance is required by the lender prior to closing on the loan.
  • Turn on utilities in your name, effective the closing date.
  • Change your address with the U.S. Postal Service.
    • Make moving arrangements.

Three days prior to closing:

  • You should receive your final Closing Disclosure from the closing agency. The final Closing Disclosure shows a column for the seller and a column for the buyer. All closing charges and credits for both the seller and the buyer are documented in the closing statement.
  • Review the closing statement for accuracy prior to coming to closing.
  • The final amount in the buyer’s column shows you the amount of money you need to pay at closing.

The closing office will provide specific payment instructions. Closing funds have become recent targets for cybercriminals. If you are asked to use a wire transfer, call the office and ask to speak to someone you have been working with to double-check the instructions.

Closing day:

In South Carolina, the closing will usually take place at the attorney’s office. Everyone signing for the mortgage must be present to sign the closing paperwork. Make sure you bring the following:

  • Cashier’s check or proof of payment for wire transfer.
  • Driver’s license.
  • Checkbook, just in case there are any additional items that were not on the closing statement.

Be sure to understand this information:

  • How and when you will pay:
  • Your mortgage.
  • Your property taxes.
  • Your homeowner’s insurance.
  • Any HOA dues.
  • Who to call with any questions.

The best practice is to go through the homebuyer’s roadmap in this sequence. However, if you jumped ahead early in your journey, just circle back to address the steps you missed.

Arthur State Bank’s loan officers are closely tapped into local real estate markets and experts at helping clients get what they need on terms that work for them. We also offer mortgage specials for first-time homebuyers.

To start planning your journey to your dream home, try out our mortgage calculator. If you’re ready to talk to a loan officer, contact Arthur State Bank to request personalized mortgage information today. Don’t forget to ask about our first-time homebuyer offer.

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