Financial safety and scams
Protecting your money and information from fraud.
Fraudsters try to trick you out of your money or your details, and their tricks get more convincing every year. You do not need to be an expert to stay safe: four habits, stop, check, protect and report, deal with almost everything. The aim is to slow down and check, because scams rely on people acting fast.
The risks to your money
Keeping your money safe is partly about protecting your information. The main risks are hacking (someone getting into your accounts or devices), identity theft (someone using your details to pretend to be you), scams (being tricked into paying or handing over money), and phishing (fake messages designed to steal your details).
Fraud does not just cost money. It can also damage your credit score, because someone borrowing in your name leaves a mess on your record. That is why prevention is worth the small effort.
Four habits that keep you safe
You do not need to spot every trick. Four simple habits cover most situations. Stop before you respond to an unexpected call, text or email, because scams work by rushing you. Check using a trusted website or phone number, not the details in the message. Protect your passwords, PINs and security codes, and never share them. Report anything wrong to your bank or provider quickly, so they can act.
| Habit | What to do |
|---|---|
| Stop | Pause before responding to an unexpected call, text or email. |
| Check | Confirm using a trusted website or phone number, not the details in the message. |
| Protect | Keep passwords, PINs and security codes to yourself. |
| Report | Contact your bank or provider quickly if something looks wrong. |
Risk and the choices you make
How careful you are is partly a matter of your own attitude to risk, which also shapes the financial services and protections you choose. Someone cautious might turn on every extra security check; someone more relaxed might not. Either way, the four habits are cheap insurance against an expensive mistake.
- 'A message from my bank must be genuine.' Fraudsters copy banks convincingly. Do not use the links or numbers in the message; check with your bank using details you already trust.
- 'A real bank will ask me to confirm my PIN or password.' A genuine bank will never ask for your full PIN or password. Anyone who does is a fraudster.
- 'If I get scammed there is no point telling anyone.' Reporting it quickly gives the bank the best chance to stop or recover the money, and to warn others.
Key terms
- Phishing
- Fake messages designed to steal your details.
- Identity theft
- Someone using your personal information to pretend to be you.
- Hacking
- Gaining unauthorised access to accounts or devices.
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Check your understanding
- What do the four habits Stop, Check, Protect and Report mean?
- Give two risks to your financial safety.
- Besides losing money, how else can fraud harm you?
Show suggested answers
- Stop before responding to unexpected requests; Check using a trusted source, not the message; Protect your passwords and codes; Report quickly if something looks wrong.
- Any two of: hacking, identity theft, scams, phishing.
- It can damage your credit score, because borrowing taken out in your name lands on your record.