Are Millennials Putting Themselves at Risk with their Digital Habits?

By Pam Reiss

According to the FBI’s Internet Crime Complaint Center (IC3), the number of reported incidents of cyber fraud continues to increase, reaching to 351,937 in 2018, 16% more than 2017 and a 30% increase from 2014.  Losses from these incidents are growing even faster, reaching more than $2.7 billion last year, an increase of 90% from 2017, and almost 240% more than 2014.  The FTC, which collects data on all sources of fraud, are even more staggering, registering almost 3 million complaints last year alone.

What’s alarming is that no age group is immune.  While there is a correlation between age and amount lost according to FTC data, there is also a reverse correlation between age and frequency of fraud loss.  The median loss increases with age, and Americans 80 and over tend to experience significantly larger losses than any other age group.  But, they are also the least likely to experience loss due to fraud.

In fact, younger Americans under 30 appear to be much more susceptible to loss through fraud than other age groups, falling victim to some sort of fraud three times more often than senior citizens.  This is particularly alarming because it points to younger generations having habits that make them easier targets, which could place them at risk for larger losses as they get older and their savings grow.

A large part of it is the nature of digital natives – Millennials and post-Millennials.  Growing up with the world at their fingertips, they have been immersed in a social environment and are willing to share just about anything.  They have built an resistance to fear of sharing information, and the more “friends” and “followers” and “likes” they have, the more successful they feel, often with little regard for the source of acknowledgement.

That world of social media acceptance has created a false sense of trust, opening the door for criminals, who only need to collect a few pieces of information in order to accomplish their goals.  It’s very easy to set up fake digital personalities to collect personal information or to create entertaining online quizzes to show your IQ, what Star Wars character you would be, or other similar social interactions.

This willingness to share, combined with younger people’s inherently higher level of trust (perhaps we should call it naïveté), makes them easier targets than older generations, which are less likely to trust engagements from people or entities they don’t know.

Whether the result is providing personal information that can lead to fraud, or clicking on malicious links in appear to be legitimate, younger adults can often be more easily manipulated by con artists and cyber criminals.  The good news is there are a number of easy tips that can help keep everyone – young and old – safe.

  • Check senders’ actual email addresses (not just names, they can be falsified)
  • Don’t click on links unless you are sure they are legitimate
  • Don’t open attachments unless you are sure they are intended for you – verify with senders if needed
  • Don’t share personal information with anyone you don’t know, including birthdays and birth cities. Most entities that need this information already have it.  This is a common phone scam tactic
  • If you aren’t sure if a request is legitimate, don’t acknowledge it until you have verified it separately with the organization or friend asking for it
  • Don’t accept friend or follower requests from people you don’t know or who seem out of place
  • Always keep your cyber security software up to date on all devices
  • Monitor your bank and credit card accounts, as well as credit reports
  • Be aware of “free” offers – you can rarely get things for nothing
  • Don’t send money to anyone who isn’t a close friend or family member
  • Be on the lookout for “URGENT” requests for information or money – this is telltale sign of scams
  • Don’t engage in any financial or other sensitive transactions over public or other unsecured WiFi networks – they can easily be hacked and your data intercepted.

Following these simple steps will help keep your identity and finances secure.  It’s inevitable, however, that you will be engaged by a fraudster.  When that happens, be sure to report it.  The more information authorities have, the better then are able to connect scams with their perpetrators and hopefully catch them.

Hopefully, it won’t happen, but if you think your personal or financial information has been compromised, contact The Milford Bank immediately.

 

Identity Theft vs. Identity Fraud: What You Need to Know

By Tyler Haskell

Identity theft and identity fraud are becoming all too common today, with the economic impact to banks, businesses, and customers reaching well into the billions annually. In 2018, roughly 14.4 million American adults were victims of identity fraud, with losses totaling $14.7 billion. The two terms – identity theft and identity fraud – are closely related, but aren’t the same, despite often being used interchangeably.

Identity Theft
Identity theft takes place when criminals acquire personal data, which is then used for subsequent illegal activities, including identity fraud and the sale of information to others. This information can include any number of PII (Personally Identifiable Information) data, such as social security numbers, credit card numbers, bank accounts, driver’s license numbers, passwords, and more.

There are many ways criminals can steal personal data, from advanced hacking techniques to intricate scams to burglary and dumpster searches. Corporate hacking instances have increased over the past years, with many high-profile breaches being featured in mainstream news, from retail stores to healthcare organizations. The breaches have resulted in millions of customers’ data being stolen. Mobile devices are also a high-value target, simply because of the incredible amount of data stored on them.

Identity Fraud
Identity Fraud happens when criminals use stolen personal data for illegitimate transactions. These may include fraudulent purchases, opening new bank accounts or credit cards, initiating loans, and more.

Identity fraud impacts not only the victims of identity theft, but also the other organizations that become part of the fraudulent activity: merchants, banks, credit card companies, etc. The truth is, everyone is impacted in some way because businesses build the cost of fraud into their pricing structures to help cover their losses.

Protecting Yourself
Recovering from identity fraud is a daunting task that can take 200-300 hours of time and cost $1,000 or more. What’s more, these accounts can appear on credit reports for extended periods, making it difficult for victims to get legitimate credit.

First and foremost, protect your data. Don’t share passwords or account information. Don’t lend your credit cards or IDs to others. Make sure you have high levels of security on your mobile devices and use highly secure passwords on your online accounts – and don’t reuse passwords. Also use two-factor authentication whenever possible.

Be aware of the countless scams being conducted via phone and online. If you even remotely question a request for information or an offer, hang up and call the institution back yourself to verify the request. Legitimate organizations don’t usually ask for sensitive information without you having contacted them first.

Be sure to check your credit report regularly. We can assist our account holders with this by activating Credit Sense on your online and mobile banking app. Credit Sense is a tool that will help you improve your financial well-being. Credit Sense gives you up-to-date personal credit information including credit scores, credit usage, total balances, payment history, credit age and recent credit. You can refresh your credit score as often as you need and get tips on how to improve it. Credit Sense also offers credit monitoring, which gives you protection from fraud with alerts notifying you when something has changed in your credit profile.

While it’s hard to keep your data completely safe, following these simple precautions and staying alert can help you avoid the hassles and financial burden of identity theft and fraud. To help you with best practices for avoiding identity theft, contact us to learn how we are helping protect your identity and funds.

Safety Tips for Online Banking

By Dave Wall

As with most services today, banking has moved into the digital world. Online banking provides an easy way to manage personal finances quickly and conveniently, without the need to worry about mailing checks to pay bills or going to the bank for simple transactions. But, the rise of digital commerce gave rise to a cyber underworld of hackers that requires caution and diligence with online activities, especially those that include financial transactions.  To keep you accounts and personal information safe, there are several best practices to follow when using online banking services.

Strong Passwords
Always make sure you use strong passwords that are not easily guessable. They should be long and include both upper- and lowercase letter, numbers, and other characters.  Using names, birthdates, and other easily guessable personal details is not recommended.  Even with the number of high-profile hacks featured by media outlets, some of the top passwords in use include “123456” and “password.”  Avoid using the same password for multiple accounts.  That way, even if one is compromised, your other accounts will be safe.  Change you passwords regularly.

Secure WiFi
Only use secure WiFi networks. Open, unsecure public WiFi networks are an easy target for hackers, who can intercept data transmitted between you and the bank.  The safest policy is to limit your banking activity to your secure home network, but if you need to make transactions while away from home, use secure networks, or even use your mobile device’s cellular connection instead of WiFi.

Secure Websites
Make sure any website you use for financial transactions is secure by checking the URL. If it begins with “https” the site is secured with an SSL certificate.  Chrome browsers are starting to identify non-secure sites with a “Not Secure” label starting this month to help identify them.

Mobile Devices
If you are using a mobile device for your financial transactions, using the bank’s official mobile app is a good option. It is often even more secure than websites and is much less susceptible to hacking.  Make sure you update the app when required, and while most users tend to avoid automatic app updates, setting your banking app to update automatically ensures you’ll be using the current version with the latest security measures.  Turn off your Bluetooth connection when using your mobile device.  Bluetooth signals can be hijacked, just like open WiFi, allowing hackers to intercept your data.  This is a good policy at all times when not using your Bluetooth capability for communication.

Account Security
Regardless of how you access your accounts, it’s advisable to request text or email alerts whenever transactions are made or if balances drop below a certain threshold. This immediately alerts you if any unauthorized transaction has taken place and allows you to react quickly.  If available, you should always enable two-factor authentication on your accounts.  That means you will have to use two means of authorizing yourself as the user, but it makes it much more difficult for hackers to gain access, even if they have gotten your password.  One example of two-factor authentication is entering a required passcode to be entered, which is sent to a specified mobile number when a login is attempted.  Similarly, disable any automatic logins on your devices.  While logging in each time takes additional time, the added security can make sure your accounts aren’t accessible to hackers gaining access to your device.

Separate PC for Banking
If you have access to a separate computer to use only for your banking activity, you can reduce risk of threats from gaming, web browsing, email, social media, and other activities. If you have an old laptop or PC that you’re not using anymore, consider cleaning it up, updating the operating system and browser, and using that as your dedicated banking device.  It may not be powerful enough for gaming, streaming videos, and other popular activities, but it can still be very useful for securing your online banking.  If you don’t have access to a separate computer, you can still use a dedicated browser – one you don’t use for any other online activities.  That will still reduce risk.  Regardless of the device, make sure you keep your antivirus, browser, and operating system up-to-date to ensure you have the latest security patches.

Be Aware of Scams
Every day, hackers and scammers send countless fake offers in an effort gain access to devices and personal information. If the offer sounds too good to be true, it probably is.  Delete suspicious emails and texts immediately, and never share account information online.  Similarly, we won’t ask you for account details or other personal information over the phone unless you have initiated the call.  If you aren’t sure if a call is legitimate, hang up and call back.

Check you Accounts Regularly
Even the most diligent customers can have their account information or identities stolen from other sources. It’s a good policy to monitor your accounts and credit report regularly to check for any unauthorized accounts or transactions.  The Fair Credit Reporting Act requires each of the three national credit agencies to provide a free copy of your credit report once every 12 months.  That will allow you to check your credit report every four months at no cost.

Regardless of what transactions you’re making online, following these guidelines will help protect your assets and credit standing.

Five Financial Challenges to Test Your Saving Skills

By Tina Mason

One of the best ways to invigorate your saving strategy is by issuing yourself a challenge. Not only does the competition make it a little more fun, but you’ll also learn valuable lessons about the long-term benefits of discipline, the way your daily spending habits impact your quality of life, and just how much you can accomplish when you set your mind to it.

If you’re looking to make improvements to your financial planning and add a little extra padding to your savings account, here are five financial challenges you can try.

Take a new look at a favorite vice: There’s nothing wrong with splurging every now and then. But if you’re spending $5.00 on a cup of coffee every day, you may want to take a fresh look at how you get your morning pick-me-up. Could you live with making coffee at home and saving yourself over $1,000 a year?

Dive into the gig economy: If you find yourself with lots of free time and aren’t sure what to do with it, challenge yourself to finding a part-time gig. If you love nothing more than driving around town listening to music, maybe Uber would be a good fit. Fancy yourself a writer? Try to get published as a freelancer. There are tons of opportunities that will fit where, and how, you need them to.

Live like you’re single: Remember when you were young and single? You could somehow survive in an apartment the size of your living room. You ate Ramen noodles for breakfast. And even if you had less money saved up, you may have felt more financially free. Granted, your spouse may not appreciate Ramen the way your 20-year old self did. However, we all behave differently when we engage with others. By focusing solely on your own finances for a brief stint, you may be able to indicate where you’re letting money fall through the cracks.

A dollar a day: This one’s simple. Get a jar, and add a dollar to it every day. If you’ve got something you’re saving for, simply wait until you’ve gotten there. If not, consider it a rainy day fund for an emergency. You’d be surprised how easy it is to forget about a dollar every day.

Pile up your perks: Perks are everywhere these days. Debit and credit cards will often offer discounts, deals or cashback. Some people go coupon crazy at the grocery store. In this challenge, you are tasked with taking cash equal in value to the perks you’ve accumulated and putting it into a new savings account. It is a way of making your savings seem tangible, and will always help to remind you  to look for savings in your day to day life.

At The Milford Bank, we’re always looking for great ways to help you grow your wealth, protect your family and live your best life. To learn more ways to save, stop by any office location in Milford or Stratford or check out our Online Learning Center here.

 

Millennial Spending Habits Leave Little Room to Save

By Cortney Meng

It was only three years ago that Millennials became the largest generation in the U.S. labor force, surpassing the Baby Boomers with employment numbers of 53.5 million. This seemed to be a coming-of-age moment for Millennials, but new research indicates that in spite of three straight years as the top demographic in the labor force, Millennials have yet to turn their earnings into savings.

According to a new Bank of America survey, it was found that 46 percent of Millennials had no money in a savings account in 2017. Even more startling, this number actually increased from 31 percent over the span of just one year.

Given the fact that Millennials are working more but spending less, this financial epidemic may be rooted in poor spending habits. Let’s take a deeper dive into how Millennials are spending their money in 2018, and what they can do to break the cycle and bolster their savings.

Spending on comfort and convenience

A Charles Schwab report found that Millennials, more so than previous generations, are willing to spend frivolously on comforts and conveniences. 60 percent admitted to spending more than $4 on coffee, 79 percent would splurge to eat at the hot restaurant in town and 69 percent buy clothes they don’t necessarily need. Millennials also surpassed both Generation X and Baby Boomers when it came to shelling out cash for the latest tech gadgets and live events, as well.

Bills, bills, bills

Though Millennials do their share of frivolous spending, not all the bills in the mailbox are a choice. In fact, a recent Mother Jones study compared Millennials to young families from the 1980’s and 1990’s and found that young adults today pay about $1,000 more on healthcare, $1,500 on pensions and Social Security, $2,000 more on overall housing and $700 more on education.

Simply put, cost of living increases have put a damper on what earnings Millennials have generated. That said, the need to save for the future must remain a top priority. Millennials must reconcile the lifestyles they wish to lead with the realities of the world they want to live them in.

So what can Millennials do to start getting their savings accounts in the black?

Forbes recently outlined some of the ways in which Millennials can begin breaking the bad habits that have gotten them to this point. Here are a few key points:

  • Millennials, natives of the Social Media age, are often pressured to be at every event, party or Happy Hour. FOMO, or “fear of missing out”, is a very real phenomenon and can often lead individuals to spend money they don’t have, simply to ensure they’re in the picture—both literally and figuratively.
  • Setting clear goals is crucial, especially if you’re not where you should be or want to be financially. Even if it’s just saving $10 from each paycheck, it’s a start. By clearly defining your needs, and your limitations, you’ll soon be able to turn $10 into $100.
  • Checking and savings are two different things, yet many Millennials try to use a checking account for all their cash. Not only does this curb your growth potential, but it becomes all too easy to draw from that money in a particularly tight week. If it’s visible and easily obtained, you may have a hard time saving it.

To learn more about developing an approach to saving that will get you where you want to be, stop by any office of The Milford Bank in Milford or Stratford, or check out our Online Learning Center here.

Investment Tips for an Uncertain Market

By Matt Kelly

At the end of January, the Dow Jones Industrial Average capped off another record-setting month of growth, settling in around 26,600 points. Just a week into February, and the market had shaved off nearly 2,000 points as analysts began to question whether the bull market had finally slowed to a halt and whether we were in for a correction, recession, or more.

Now, investors find themselves quickly fluctuating between rapid sell-offs and frenzied buying sprees, uncertain about the more long-term economic outlook.

Of course, it’s not advisable to simply liquidate your assets and keep it all as cash under your mattress just because the stock market is volatile. Instead, this is a good point to calmly evaluate your needs, your long-term goals, and consider tweaking your investment strategy to make sure you don’t waste any time growing your portfolio.

While you should never make an investment without first consulting your advisor, here are a few tips to help steer you in the right direction.

You don’t need to abandon the markets entirely: Even when the markets suffer huge losses, there are still plenty of successful companies that weather the storm. You don’t need to pull all your savings from the stock market, but you do need to address whether or not your portfolio is diverse and conservative enough to be protected from a bear market.

Check out indexed and whole life insurance policies: Not only is life insurance an important component of your family’s financial planning, it can also act as an investment vehicle depending on the type of life insurance you procure. A whole life insurance policy will provide you with extra cash every time you pay your premiums. Indexed policies use that cash value and invest it into accounts tied to an index like the S&P 500. They have a floor of zero, meaning that you won’t lose money in a bad year, but still retain upside potential.

Consult with your financial advisor: Watching the stock market go up and down can be more emotional than an Oscar-nominated drama. And if you’re emotional, you may not be making sound financial decisions. Consult with your financial advisor before making any sudden changes to your investment strategy. This will ensure that your goals, and your financial needs, are both working in conjunction to secure your future and maximize your wealth.

To learn more about the savings opportunities available to you, stop by any office of The Milford Bank in Milford or Stratford, or check out our Online Learning Center here.

The Savings Spotlight Series, Part 3: Mid-Career Planning

By Chaz Gaines

In the Savings Spotlight Series, we’ve made the case that there are numerous stepping stones throughout our lives that lead us down the path to financial well being. At every point, you’ll need to take a different approach. A teenager, for instance, might be saving for their first car. An individual nearing retirement is going to have a drastically different goal, and method, for reaching their savings objective.

Already in this series, we’ve provided useful savings tips for both first-time banking customers and recent college graduates. In Part 3 we’re going to fast forward a decade or two along our path to retirement, focusing in on the savings needs of individuals in the middle of their careers.

Maximize employer benefits: Most of the businesses that offer retirement benefits will no longer contribute after you’ve left the company. Now, nearing the height of your earning power, you should be doing all you can with the remainder of your working years to take advantage—especially if your employer will match your contributions.

Balance retirement and college funds: Many individuals at this stage in their lives must reconcile the need to have a forward-thinking retirement-oriented saving strategy while simultaneously helping their children get started on their own path. It can be challenging, but your focus when crafting a budget and savings strategy should balance both.

Bolster your emergency account: Many individuals at this stage in their working life have been at their jobs for twenty years or more—making them feel quite secure. But sometimes, business decisions are out of our control, and many families get blindsided by that false sense of security. Even if you expect success, a failure to keep an emergency cash account funded could put your family at risk. Many experts believe you should have at least six to nine months salary readily available in case of emergency.

Expect the unexpected: Just like it’s important to plan for emergencies throughout your life, it’s important to plan for the end of your life too. If you were to pass away today, your grieving family would still have to keep paying the mortgage, fund college accounts and plan for retirement—all without your income. While this is a sensitive matter in which thinking about money should be secondary, it’s nonetheless a reality that your family will have to cope with. Securing life insurance will provide the coverage your family will need in the event that the worst comes to pass. Some policies, like whole life insurance, even have features to assist with your savings goals.

Shift investments to meet changing goals: Every investment vehicle offers a unique benefit. So if your financial goals are shifting, shouldn’t your savings strategy? When we’re young, we have more ability to rebound from a risky investment. We also have more time to let a certain, conservative investment grow. Now, in the middle of your working life, it’s important to take a moment to reflect on whether the vehicle that got you this far is going to be the vehicle that gets you all the way to the finish line, or if it’s time to trade in.

To learn more about crafting the best saving strategy for you and the needs of your family, check out our Online Learning Center or stop by any office of The Milford Bank in Stratford or Milford today.

The Savings Spotlight Series, Part 2: Recent College Graduates

By Chaz Gaines

There is no one-size-fits-all savings strategy that will work for every individual. The truth is, we’re all at different stages in life and must adjust our planning accordingly. What works for a teenager saving for their first car isn’t going to work for a couple in their early sixties looking to retire in the next few years.

As such, it’s important for every individual to craft a savings strategy that will best support their needs and wants for the circumstances surrounding their lifestyle. In this series, we’re looking at some of the major milestones throughout life to help our customers hone in on where their heads should be at when it comes to their savings strategy.

In Part 2, we’ll be taking a closer look at the financial needs of recent college graduates—an ever-increasing demographic that today must contend with record amounts of student loan debt as they enter the workforce. If you’re a recent grad, or know someone who is, take a look at the following tips to help get started on the right track.

Start paying off student loans: In addition to receiving a diploma, you’ll now need to start paying off your student loans now that you’ve graduated. While every individual has different degrees of financial flexibility, many experts believe that contributing 10 to 20 percent of your monthly income to paying down student loan debt will keep you on even footing in the long run.

Take advantage of employer benefits: Another benefit of leaving the classroom is that you’ll now be able to get a full time job, and the benefits that come along with it. By starting to contribute early to a 401(k) or IRA through work, you’ll have the opportunity to add significant value compared to employees who pass up the opportunity. This is especially true in cases where employers will match your contributions.

Build a personal portfolio: Relying solely on employee benefits will hinder your earning potential, so it’s equally important to start diversifying your savings and building a personal portfolio. But you’ll need to evolve beyond the simple savings account that got you through college. Given the fiscal highs and lows that can come along with being a recent graduate, certificates of deposit are sometimes a good place to start. Smartphone-savvy grads can even find great finance apps that can give an introduction to investing without the mandatory minimum contributions required for some investment vehicles.

Establish your credit: A good credit score supports long term saving because it will eventually help you to get lower interest rates on mortgages, auto loans and a variety of other important purchases you’ll make in the coming years. One option is to obtain a small balance credit card, but the easiest way to build your credit is to simply pay all your bills, in full and on time. You won’t notice the savings now, but you’ll be rewarded down the road.

Live within your means: There’s a great sense of freedom that comes when you get your first apartment or see your first paycheck deposited into your bank account as a new graduate. But just because you don’t need to eat ramen three nights a week anymore, that doesn’t mean you should be going out to eat every night either. One way to ensure that you don’t get carried away is by sticking to your budget. But it’s also important to put yourself in places, and surround yourself with people that won’t encourage you to spend exorbitantly.

College graduates have their entire lives ahead of them, and by taking a careful approach to saving now they’ll have many more chances to enjoy themselves down the road. Of course, they’ve got to balance that so they can enjoy the benefits of truly entering adulthood, too. At The Milford Bank, we’ve been helping college graduates in Milford and Stratford navigate this new point in their lives for generations. To learn more, stop by an office location near you or check out our Online Learning Center here.

 

The Savings Spotlight Series, Part 1: First-time Savers

By Chaz Gaines

Every individual has different goals and unique circumstances that help to guide the decisions they make when it comes to their savings strategy. Some people have decades of work ahead of them to steadily sock away money for retirement, while others are looking to gain ground quickly with retirement just a year or two away. Some individuals have large families with children to send off to college, while others are responsible for only themselves.

In the Savings Spotlight series, we’ll take a look at some of the big benchmark moments throughout life. We’ll look at how teens, recent graduates, young families, and those closer to retirement all have varying needs that require a different savings approach.

In Part 1, we’ll provide some savings advice for teenagers who are first-time savers. Just because they’re young, it doesn’t mean that their summer jobs or weekly allowances can’t help them to begin building a robust portfolio to maximize their savings now. If you’re a teen, or have a teen, who is just starting to learn about saving money, here are a few tips to get them started.

Distinguish between short, medium, and long term savings

It’s important for kids to be kids, while also learning fiscal responsibility. As such, there’s nothing wrong with a teen wanting to save up for a concert or snowboard at the same time they’re saving for college, or even retirement. It’s simply about making a clear distinction and sticking to your plan.

Putting savings strategies into context

When it comes to long term saving, it is easy for teens to be too reactionary. For instance, a minor stock market correction could seem like the next Great Depression if you don’t have the benefit and wisdom that comes with watching such fluctuations occur for decades. Teens must remember that, depending on the investment vehicle, the money they set aside today may not be used again for another half century. As such, it’s best to set a strategy and stick to it, rather than continually pull your money in and out of savings to try and time the markets.

Thinking about risk and reward

Risk and reward are inherent in any investment. Finding the most optimal vehicle for your needs is all about striking the right balance between risk and reward. Young investors don’t typically have the assets to make a lot of risky investments. But conversely, they’ve got lots more time to make up ground if a high risk-high reward investment doesn’t pan out. Young investors are in a unique opportunity to use their age to their advantage, but you must assess your risk tolerance carefully first.

Never too young for life insurance

While teenagers might think they’re immortal, certain types of life insurance can offer significant savings upside for teens. Whole or permanent life insurance contracts provide additional savings components, as they accrue cash value when you make premium payments. And because age and health are critical elements in determining the premium costs of a life insurance contract, the younger you are when you lock in your rates with a permanent plan, the cheaper it will be and the earlier you’ll start saving. Not only will you protect yourself and your future family later in life, but you’ll have a big leg up on your cash value investment too.

At The Milford Bank, we have helped countless members of the Milford and Stratford community develop successful savings strategies for their wants and needs. No matter where you might be with your own personal savings strategy, we can help. Stop by any Milford or Stratford location near you, or check out our Online Learning Center to learn more.

And be sure to stay tuned for Part 2 of this series, when we’ll be highlighting savings strategies for recent graduates.

FDIC Reports 10 Scams Targeting Banking Customers- Part 1

By Dave Wall

The holiday season is upon us once more in Milford and Stratford, and we’d be willing to bet that you’re one of the millions of Americans that has already helped to make the 2017 holiday shopping season a record-setter. But in the flurry of transactions and the general chaos that is the holiday season, it can be difficult to stick to financial security best practices.

However, according to the FDIC, it’s now more important than ever.

In a recent report, the FDIC issued a list of 10 scams being perpetrated today by con-artists looking to empty bank accounts, steal financial data and ruin much more than your holiday.

In this series, we’ll take a deeper look at the list so that you can stay on alert through the holidays and throughout the rest of the year, too.

  1. Government Imposter Frauds: If you get a call, an email or letter from a government agency requesting that you make an immediate payment or provide personally identifiable information (PII) on the spot, you’re the target of a government imposter. Government agencies will never ask for PII or a payment in the moment.
  2. Debt Collection Scams: Criminals will often pose as debt collectors or law enforcement officers in an attempt to shake down unsuspecting individuals who may already be having a tough time dealing with debt. If the individual cannot produce records, or threatens violence or arrest, you will know that it is not a legitimate claim.
  3. Fraudulent Job Offers: Background checks are part of many legitimate job offers. But some con artists are now using online classified ads to draw in job seekers with cryptic promises of employment. They’ll request personal information to conduct what they claim is a background check, when in reality they’re using the information to steal your identity. You’ll have to do your due diligence when looking for employers, so be sure to gather all the facts about a company before you comply with a background check.
  4. Phishing Emails: Phishing emails use spoofing software to mimic the email address of your contacts. They will then disseminate an email—typically with malware embedded within a link in the body of the text—in the hopes that someone will click the attachment. This will then give the hacker remote access to your device, helping them to find your financial records and PII.
  5. Mortgage Foreclosure Rescue: There are plenty of homeowners out there having a hard time making ends meet. But if you’re approached by a loan broker or consultant with an offer that sounds too good to be true, it probably is. They’ll promise you anything in exchange for a down payment or personal information, but in many cases victims end up getting foreclosed on anyway. In other cases, victims are even tricked into signing away ownership of their property to the scammer.

To learn more about how to follow financial security best practices, stop by a Milford Bank office location in Milford or Stratford, or check out our Online Learning Center here. And be sure to keep watch for Part 2 of this series, when we’ll be delving into the FDIC’s remaining 5 scams targeting banking customers today.