Fraud is something that has become more prominent particularly in the modern age. Fraud is when a person lies to you or manages to scam you to take your money or take advantage to learn more about your private information. This can happen in a variety of ways. You need to be careful when checking your emails, texts, phone calls, or those you meet in the street or on your doorstep. However, you should not fret too much as there are always preventative solutions that you can take to help secure your life against scammers and fraud artists. Here are just a few ideas to help you out.
Something to note
The 6th anti-money laundering directive or 6AMLD came into force in June 2021 replacing the 5th anti-money laundering directive. The purpose of this legislation is to prevent money laundering and other financial fraud across the EU. The rules of the 5AMLD were said to have lacked clarity and in being so murky allowed cases to slip away without charge or penalty. This has been rectified by the 6AMLD.
As part of its aims, the 6AMLD looks to define money laundering and remove loopholes in the domestic regulations of EU member states. It has introduced a new list of 22 offenses including those concerning tax crimes and cyber-crime. Additionally, the legislation has extended and toughened punishment so that lawmakers can prosecute the guilty parties more effectively.
All financial organizations and companies must prepare both practically and technically for the changes that the 6 AMLD has brought. This means that financial institutions must set frames for safe Know Your Customer procedures which is an important aspect of the business to protect customers from fraud.
Where does fraud happen?
Fraud can happen throughout any industry or market that involves customers’ money. However, that does not mean that there are no prominent areas in which scammers tend to operate. A few examples of these are:
Real estate- Real estate criminals look to take advantage of property owners who are experiencing financial trouble. A common scam that is used is called foreclosure fraud. This is where a customer is struggling to make mortgage payments and criminals pose as a company that offers a loan to help them cover their costs and to consolidate their debts. It will usually involve upfront fees and ask for you to sign your home over to them.
Automobiles- You can be caught out by purchasing a second-hand vehicle. This can come from not knowing if the person you have bought it from has sold the car without a clean title or without its true history. Or you could get caught out by being offered a deal that gets rejected and forcing you to buy at an inflated cost.
Debt- If you are someone that is facing debt, then you become more vulnerable to the criminal. Criminals will look to collect on old debts that are either too old to collect or were never truly owed. Often you will be threatened with police action and jail time. The way they convince you is by using some personal data that they can secure from public information.
How to see it and stop it
There are plenty of ways to protect yourself from fraud. You should always ask for the name, number, and address of the company that is claiming to contact you. You should refuse to discuss any monies owed until you get a written notice validating the debt. However, you should also practice safe use of your own data on a daily basis. For example:
When you enter your PIN in a shop or at an ATM, you should cover the pad and never reveal your personal information without checking the legitimacy of the company.
You should regularly check receipts against your bank statements. If you notice any discrepancies, then you should contact your bank and card company.
Keep your personal information and sensitive documents in a safe place.
Only shop on secure websites. If you do not see a padlock at the top of the web browser in the URL, then you should not use the site.
Finally, you should keep your internet-connected devices protected and up with date antivirus software and operating system.
Criminal Fraud
Even the most vigilant person can be caught out by fraud. There are plenty of ways to stay ahead of the scammers though. You need to stay vigilant and keep an eye on your finances. Always look to discuss your situation with a trusted professional before signing up for any deals.
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