Stay current on the latest frauds and schemes by monitoring credible sources such as state and federal government or law enforcement agencies, including the CFTC, SEC, Department of Justice, FTC, the Consumer Financial Protection Bureau, FINRA, National Futures Association (NFA), your state securities regulator, or attorney general’s office.
Also, be on the lookout for recovery frauds. These frauds target recent victims and claim to be able to get the stolen money back if the victims first pay an upfront fee, “donation,” retainer, or back taxes. The perpetrators of these advance-fee frauds often pose as government officials, attorneys, or recovery companies.
If you suspect fraud has occurred at your organization, take these immediate action steps: Safeguard potential evidence. Preservation of evidence is key. Secure any and all potential evidence — but by all means, avoid the temptation to examine the evidence on your own. Electronic evidence is fragile and easily altered.
The best way to mitigate fraud risks is to have internal controls and external resources available to prevent them from happening in the first place.
Placing a fraud alert is free and typically lasts up to one year or until you ask for it to be removed. You can also request a free security freeze. A security freeze restricts access to your credit file, making it harder for identity thieves to open accounts in your name.
If the fraud occurred in your local community, you could also report the matter to the police and your district attorney. You may need to file a police report if you plan to file an insurance claim for fraud losses. Also contact your state financial regulator or attorney general.
If you provided payment information to the fraudsters, take the steps necessary to block access to your accounts and protect against identity theft. Credit cards. If you used credit card information in the fraudulent transaction, contact your card issuers immediately to make a fraud report.
The BASIC Database operated by the National Futures Association provides information on registration and details about registrants, including disciplinary histories. Names, titles, or positions used by the fraudsters. Social media profiles, group posts, chats, or other online interactions.
Fraudsters are very good at what they do , and they often target educated and successful people. However, you may want to consider the events or actions that led up to the fraud. Many times, routine activities can lead people into becoming targets, and returning to those activities could start the process over again.
Check your homeowner’s policy to see if it includes coverage for fraud losses or reimbursements for identity theft related expenses. It may be limited to your principal investment and not expected profits, or it may cover only expenses incurred to fix problems caused by the identity theft.
Typically, legitimate brokers will deduct fees and commissions from your account, and not demand more money to release your earnings or principal. U.S. brokers will never withhold or collect taxes. Also, be on the lookout for recovery frauds.
A crucial fact for employers to know is that you must notify your insurance provider within 30 to 60 days, depending on your policy. Failure to do so could cause a loss of coverage. File proof of loss. You will need to document any losses with your insurance provider in a specified time frame.
If you suspect fraud has occurred at your organization, take these immediate action steps: Safeguard potential evidence. Preservation of evidence is key. Secure any and all potential evidence — but by all means, avoid the temptation to examine the evidence on your own. Electronic evidence is fragile and easily altered.