The most common modern financial fraud methods

The Most Common Modern Financial Fraud Methods

Why do they work? And how can you guard against them?

Scammers are smart! And if you don't know what to look out for, anyone can fall victim to a scam.

Scams target people of all backgrounds, ages, and income levels. Everyone is vulnerable to scams, so everyone needs information on how to recognize them and how to avoid them.

In this article, you'll find:

Types of financial fraud, and how to spot a scammer.

What are the most common modern fraud methods?

What you can do to protect yourself.

Where can you get help?

First, why do financial frauds work?

Scams work because they seem realistic and come at unexpected times. They can include an extremely attractive offer, a phone call to fix a problem you have, a threat to pay a debt you don't owe, a warning from your bank about a problem with your account, or even an invitation to enter a competition and win a huge sum of money with very simple registration requirements!

Modern scammers' methods are unprecedented; Because today's modern era is witnessing rapid developments in technology and electronic payment methods, with this tremendous progress comes an increased likelihood of falling victim to fraudulent activities. Furthermore, these scammers may obtain some of your personal information from social media to make their claims appear more credible.

Methods of Financial Fraud

Although it is difficult to list the various methods of fraud, we can categorize them under the basic methods most of them follow. Here are the six most common modern methods of financial fraud:

Method 1: Investment Fraud

Individuals are lured with tempting promises to invest in unknown projects, and over time, it becomes clear that these projects do not actually exist. The projects are fictitious, still on paper, or their owners have no intention of completing them.

Method 2: Network Fraud

This is known as the "deceptive financial pyramid scheme," which relies on offering monthly returns to previous members, using the money of the larger number of new subscribers.

Method Three: Financial Brokerage Services

Where you are persuaded to allow someone to invest your money "on your behalf" in the foreign exchange, stock, and cryptocurrency markets, or any other financial activity.

Method Four: Charitable Projects

Where emotions are exploited and funds are solicited under the pretext of establishing charitable projects, but this is merely a cover for other purposes.

Method Five: Online Fraud

This is one of the most common types of fraud in the world, and in this type of fraud, you rarely know who the person you are dealing with is. This type is the most dangerous because it includes all previous online activities, including email, phone calls, online advertisements, fake websites, etc.

Method Six: Fraud in the Name of the Law

In this type, fraudsters pretend to be official entities, impersonating well-known government, financial, or commercial entities, and the victim becomes involved with them in a failed project, deal, or unfair partnership through an informal agreement or duplicate contract.

How can we avoid financial fraud?

To protect yourself from fraud, you should pay attention to the following 4 steps:

Monitor Events

Ensure you are constantly monitoring and understanding financial fraud methods and follow the warnings issued by official authorities.

Be Careful

When sharing your personal and financial information, do not rush to do so, regardless of the means of communication—whether via email links, text messages, websites, or even phone calls claiming to be from a specific entity.

Check Identity

Always verify the identity and legitimacy of any party requesting your personal and financial information through unofficial means, such as text messages, email links, or social media.

Report

If you suspect you have been the victim of financial fraud, report it to the financial institution you were dealing with and to the relevant security authorities.

As for Safe Online Shopping

Check the credibility and security of the online store's website or app when making online purchases.

Ensure the security of your internet connection while shopping online.

Check your bank statement and text messages received from your bank; To ensure that unauthorized financial transactions are not carried out.
Do not save your bank card information on untrusted online shopping sites.
Keep your bank card information confidential and do not share it with anyone.

Where can you get help?

If you have been subjected to electronic fraud, report it immediately to your financial institution and the relevant security authorities if you suspect you have been subjected to financial fraud by:

Log in to the Ministry of Interior's Absher portal.
Public Security Services.
Select Cybercrime Report.
Choose the type of report and fill out the required fields.
After submitting the report, you will be provided with a reference number.

Saudi Central Bank

In cases of financial fraud, a complaint can be filed with the Saudi Central Bank through the Fraud Complaints Service, by following these steps:

Visit the official website of the Saudi Central Bank via this link here.

https://www.sama.gov.sa/ar-sa/pages/contactus.aspx

Click on the Services menu.
Select "Complaints" from the services menu.
A new page will appear containing the various complaints in Menu (B).
Select "Bank Complaints" and click on it.
The website will take you to the SAMA portal. Please enter the required information.
After logging in to SAMA, the complaints section will open.
You will receive an email with the complaint number for follow-up.

Finally,

Caution and awareness are the keys to protecting yourself from financial fraud. Protect your money and personal data, as they are an integral part of your financial future. Always remember that immunity against fraud begins with awareness and avoiding risks as much as possible to protect your property and wealth.