In today’s world, fraud is more common, especially online. It’s important for both people and organizations to know how to keep their information safe. This blog will talk about the different kinds of fraud you might come across, give you tips on how to stop fraud before it happens, and explain what NDTCO does to fight against fraud.
Like the Golden Rule of life, there is also a Golden Rule of Fraud Prevention, “If it’s too good to be true, then it probably is.”
Fraud often presents itself as a fantastic opportunity, tempting you with quick results while applying high pressure and playing on your emotions. On the flip side, it can also appear as a sudden disaster that requires immediate action. In both scenarios, the approach is usually the same: it’s fast-paced, pressurizing, and designed to manipulate your emotions.
COMMON TYPES OF FRAUD
Phone scams (IRS, grandparent, lottery)
Phone scammers use various tactics to deceive victims. They often start by manipulating caller ID information, impersonating authorities, or organizations, and creating urgency through threats of legal action or emergencies. They may request personal information under false pretenses and demand immediate payments using hard-to-trace methods. Scammers employ confusion, reinforcement, and even harassment to maintain control.
Online scams (phishing emails, fake websites)
Internet scams encompass a range of deceptive practices online, with the aim of defrauding individuals or organizations. These scams exploit the internet’s anonymity and reach. Common types include phishing for sensitive information, advance-fee fraud, online shopping fraud, romance scams, tech support fraud, and more. Scammers impersonate trustworthy entities, offering fake prizes, jobs, or investments. Victims often lose money, personal information, or valuable assets, making it vital to exercise caution online, verify offers, and report suspicious activities to authorities.
Social engineering (fake charities, family emergencies)
Social engineering is a manipulative technique used by cybercriminals to gain trust and deceive individuals or organizations into revealing sensitive information, granting access to systems, or taking actions that compromise security. Attackers build trust, create a sense of urgency, and exploit human emotions like fear or sympathy. They often use recurring tactics like phishing emails, pretexting, impersonation, and baiting to achieve their goals.
Pig butchering investment schemes typically start with a stranger contacting you via text, social media, or messaging apps like WhatsApp. They build rapport by using various tactics, such as claiming they found your name in their contacts, sharing fake but convincing photos, or appearing interested in forming a genuine friendship or romantic relationship. They engage in non-investment conversations, trying to foster trust through personal sharing and similarities. The fraudster may claim to be a widow, a single parent, or a member of the military living abroad. Eventually, they shift the conversation toward investment topics and inquire about your investment or retirement accounts.
REACTING TO FRAUD
Humans have a natural trusting nature and a desire to help others. However, this benevolence can attract a few bad actors seeking to exploit it. Moreover, with the rapid evolution of technology, keeping up with the changes can be challenging. Fraudsters, being opportunists, aim to exploit technology for the highest returns on their time, making retirees, who have spent years building their wealth, particularly appealing targets for bad actors.
Knowing how to act in any situation matters greatly. When excited or under pressure, step back to think and refrain from impulsive decisions. It is greatly important to wait and assess before committing. Here are some tips when encountering a suspicious activity:
Phone a friend
Fraudsters try to isolate and discourage you from seeking advice. Try consulting a trusted ally for an objective perspective if something feels off.
When offered something tempting, seek concrete evidence to substantiate the claims. Exercise caution if the opportunity lacks verifiable legitimacy and proof.
Trust Your Gut
Trust your instincts when something feels off or too good to be true; intuition is valuable!
Client Education and Awareness
We believe that education is one of the most effective defenses against fraud. It empowers individuals with knowledge about fraud schemes, tactics, and warning signs, enabling them to protect themselves. Moreover, educational programs help combat victim blaming by emphasizing that anyone can be targeted. Fraudsters use sophisticated tactics, and it’s essential to understand that it’s not the victim’s fault. We encourage you to continuously seek education around fraud to protect yourself and others.
Employee Education and Awareness
We prioritize both client education and comprehensive internal training. Our fraud training empowers all employees with the skills to detect and prevent fraud within the organization. Informed employees act as our first line of defense against potential fraudsters. Educating them about common fraud schemes, warning signs, and reporting protocols to reduce the risk of internal or external fraud while keeping bad actors away from precious assets and information.
NDTCO’s Secure Online Client Portal
Using the NDTCO Client Portal is the best way to counter email-related scams with your account. Using this secure channel for all interactions helps us prevent data mishandling, maintain security, and ensure proper transaction authentication. Plus, portal messages create a clear record, enhancing transparency.
As organizations and individuals adapt and enhance efforts to combat fraud, fraudsters are also always seeking ways to innovate. Remember, it is important to continuously stay educated and up to date about the latest fraud initiatives and various ways you can protect yourself against fraud.
At NDTCO, it is our top priority to protect our clients. We value client assistance, feedback, and reporting as valuable contributions to enhancing our efforts. If you feel your NDTCO account or any personal information related to your account at NDTCO is compromised, contact our Client Success team immediately via secure client portal message or at 877-742-1270, x191.