Locking Down Your Finances: Staying One Step Ahead

This year, three people I know were tricked into clicking a link or calling a fraudster. Some of them suffered real financial loss, others massive inconvenience as they worked to recover from it.

Even the smartest people can get caught off guard by attackers exploiting trust. As a former IT professional, I have a special place in my heart for thwarting bad actors! So, let’s talk about how to protect yourself.

Common Tactics

It used to be obvious when something looked “off.” But scammers have become more sophisticated, perfecting their ability to impersonate legitimate websites and businesses, even more so with the rise of AI.

Now it looks like your bank. It sounds like Microsoft. It always comes with a sense of urgency, such as:

• A pop-up warning you about a virus.

• A text claiming your service will be shut off.

• An email with a “secure link” to verify your account.

Don’t take the bait. No legitimate businesses or financial institutions operate that way. If you’re ever unsure about a financial compromise, pull out your credit/debit card, turn it over, and call the number printed on the back. The lesson here is always to go to a reliable source rather than trusting these attack vectors.

Flashing Red Lights That It’s a Scam

If you’re ever told to:

• Buy gift cards to resolve an issue

• Liquidate assets to deposit cash into a Bitcoin ATM

• Move money quickly while under pressure to keep it a secret

Stop.

Those actually working in your best interests don’t demand urgency. Malicious actors do. Slow it down, take on a healthy dose of skepticism, and verify with someone you trust before doing anything.

Practical Proactive Protection

We’ve been talking about how to identify today’s tactics and avoid succumbing to fraud, but what protections can you put in place, proactively, to catch it before anything happens?

1.      Have a second set of eyes.
It bears repeating. If something feels off, call a trusted friend, advisor, or family member. Two minutes of talking can save hours of damage control. Fraudsters prey on shame and fear, trying to keep you disconnected from those you know best and who look out for you. I put this at #1 because it is the absolutely required foundation to avoid being tricked.

2.      Watch your transactions.
This one is next for a reason. It’s one of the financial behaviors that people are worst at, but pays off in more ways than one. If you know exactly what’s coming in and what should be going out, you're set up to spot the unusual. And here’s the bonus: if you keep a true budget, you’re already tracking transactions naturally. Set up alerts for your bank and credit cards. This is the simplest, most powerful fraud defense there is.

3.      Check your credit report at least once a year.
Like budgeting, this is just one of those financially responsible things to do. Not only are you brought face-to-face with your financial condition, but you’re also able to see if any fraud has occurred on your record. You can quickly do this at https://www.annualcreditreport.com/index.action, which is the US government’s official site to request your free report from all three major credit reporting agencies.

4.      Freeze your credit.
If you’re not applying for loans or new credit cards, freezing your credit prevents anyone else from doing it in your name. The caveat here is that not all institutions or retailers offering credit check with credit bureaus before issuing it, so this isn’t foolproof. But it’s another layer that makes it that much harder to use your information to commit credit fraud such as taking out a mortgage or opening up a credit card, all in your name.

5.      Monitor your property title.
Fearmongering on TV will try to get you to sign up for a fancy service for this. Here’s some great news, though. Many county Recorders of Deeds (especially in IL) now offer free property alert systems that notify you if a new deed or lien is recorded against your property. Title-lock companies charge for this, but the service your county provides does the same job free of charge.

Passwords: Where Security Meets Sanity

I’d be remiss if I didn’t address the age-old problem of password security. If done right, they can be an extra firewall preventing unauthorized access to financial assets. I believe that not all passwords require the same level of protection. Your Netflix login isn’t as critical as your investment account.

For the accounts that matter, follow these guidelines:

• Use unique passwords for every financial or sensitive site. I know this sounds difficult to maintain, so keep reading.

• Store them in a password manager. Please don’t use Post-it notes taped to your computer! 😅

Examples are: built-in web browser password vaults, cloud-hosted software, or standalone apps running on your computer. I prefer the latter.

• Make sure your less tech-savvy spouse knows how to access them. If something were to happen to you, they will need these to carry on.

• Turn on two-factor authentication whenever it makes sense.

• Create passwords from long phrases you’ll remember, then tweak them creatively.

What If You’ve Already Gone Too Far?

If you suspect your device is compromised:

• Immediately disconnect that device from the internet by putting it in airplane mode or unplugging the internet connection. That single action stops the attacker’s access and buys you time to recover.

• Then call a qualified cybersecurity specialist. Not a big box store. You need someone experienced in digital forensics and remediation.

• If your financial accounts have been breached, contact each institution directly.
  This is where financial simplicity pays off. Fewer accounts, especially bank accounts and credit cards, mean fewer fires to put out.

Do You Need Identity Theft Protection?

Some people swear by it. Others skip it. It depends on your vigilance and willingness to take in the work to restore your identity and recover any lost funds. If the ID protection service truly takes on the full burden, it could save you an enormous amount of time and stress. Personally, I don’t carry identity theft protection. But some professionals I trust do, and they value the peace of mind it provides.

Pause. Verify. Protect.

Protecting your identity doesn’t require paranoia. Like so many other areas of finance, it’s about awareness and intentionality. Fraudsters thrive in moments of fear and urgency.

So when something feels off, slow down. Verify. Because the calmer you are, the less likely they’ll succeed.

And if it ever happens to you, don’t freeze in shame or panic. You’re not alone. You’re human. We all make financial mistakes we wish we hadn’t. Even the smartest people can get caught off guard.

If you’re a client of The Dala Group, we always walk alongside our clients during times like this.