What are Financial Crimes

Financial crimes involve illegal activities where the primary goal, typically, is to obtain money through deceptive and illegal means. These illicit activities exploit an individual’s or businesses financial resources for personal financial gain. It encompasses a wide range of offenses, including securities and commodities fraud, money laundering, corruption, insider trading, embezzlement, and various forms of cybercrime targeting financial institutions or individuals.  

These schemes involve exploiting vulnerabilities in financial systems or taking advantage of the cultivated trust created with the bad actors. 

Here are some tips to help you avoid becoming a victim of financial crime: 

Protect your information: Be careful with sensitive information, such as your Social Security number, passwords, and PINs. Don't share this information over the phone, by mail, or by email unless you initiate the contact and know who you're dealing with. Don't respond to unsolicited requests for this information. 

Be careful online: Use strong passwords and change them frequently, especially for sensitive accounts. Don't use the same password for multiple accounts. When shopping online, use a secure internet connection and avoid public Wi-Fi. Only buy from legitimate online stores and only download from trusted sites. 

Be aware of scams: Stay informed about the latest cyber threats and scams. Look out for red flags, such as high-pressure tactics or being told you must pay up front to receive something. Don't wire money to strangers or sellers who insist on wire transfers. 

Monitor your accounts: Regularly check your bank and credit card accounts for unrecognized charges. If you notice a charge, contact your bank or card issuer immediately. 

Protect your devices: Keep your software up to date and install security programs like antivirus, firewall, and email filters. Pay attention to your surroundings when using electronics in public. 

Always Know Who You Are Dealing with: Try to find out the physical address of a seller or caller. With Internet based phone services (VOIP) and other readily available software, phone numbers can easily be "spoofed." This means that bad guys can make any number appear on your caller ID. It's often difficult to determine where they are physically located. Do online searches with the information you are provided and look for reviews. Often, there will be user experiences posted. 

Always Treat All Transactions like They Were Cash Transactions: Most scammers will insist that you wire money or use prepaid money cards for payment. Often, they receive the money overseas and it is virtually impossible to reverse the transaction or trace the money. 

Always Read Your Monthly Statements: If you notice any charges you do not recognize, contact your bank, card issuer or other creditor immediately. 

Never Wire Money to Strangers: You should never wire money to sellers who INSIST on wire transfers for payment. If a distant relative claims to be in an emergency and requests wired payment, you should always check with other family members first. This is a common scam where money is transferred overseas. 

Never Agree to Deposit a Check and Wire Money Back: Banks are required to make funds deposited from checks available within days, but uncovering a fake check can take weeks. You are responsible for the checks you deposit and are often responsible for paying back to the bank. Someone who overpays you with a check is almost certainly a scam artist. 

Never Reply to Messages Asking for Personal or Financial Information: Whether the message comes as an email, a phone call, text message or pop-up ad on your electronic device, your information should never be provided. This is called "phishing." Scam artists are trying to trick you into providing this information so that they can create accounts in your name.