How HNWIs Avoid Financial Fraud

Anyone can be a target of financial fraud. People believe that HNWIs are the most secure in terms of financial fraud. Yes and no. Yes, because they have in place a rapid action team to respond to these frauds. No, because their status as HNWIs make them prime targets of fraudsters. So, they keep updating their anti-fraud strategies.

Whether or not you are an HNWI, you must protect yourself from financial fraud. We can learn a few of the strategies from these individuals. Of course, you cannot undertake sophisticated measures like them. But you can always learn. Here is how you can protect yourself from financial fraud.

Never share personal details

HNWIs are very particular about NOT furnishing their personal details. You should be too! Scammers often send out emails (phishing emails), text messages, or calls to offer fantastic deals. To seal the deal, they’d ask you to furnish details such as passwords to financial accounts or CVV on the back of the credit card. This is a major red flag, and you must immediately report the person and the contact detail.

Always verify the identity

HNWIs are approached by hundreds of people year long. And they can’t trust all of them. Even if a friend has referred to them, they’ll think twice before shaking hands with them. Because you never know! You should be cautious too. Do your due diligence. Quite commonly, a fraudster would come to your home, for example, pose as a government agent, and say that they have come to collect financial details for a subsidy service to be rolled out in the coming months.

Now, first of all, verify their identity not just through their ID card but on the government registry. Secondly, if you’re not aware of the scheme at all, don’t go for it immediately. Let them know that you’ll apply for the scheme later. A scammer would not like to hear that and would try hoodwinking you. Resist!

Beware if it sounds too good to be true

Ever heard someone tell you that they will double your money in no time? They will ask you to make a deposit and wait for some time. And, whoosh! You’ve lost everything!

In the financial world, anything that sounds too good and without riders is quite likely a scam. High returns are exciting to hear about and to look at in the account sheets, but they don’t come easy. HNWIs have loads of cash with them, yet it takes time to generate handsome returns.

Nevertheless, should you feel that the scheme seems legitimate on the face of it, always conduct independent research! Ask professional financial advisors for a second opinion. Only then can you go ahead.

Keep a watch on your bank accounts

Sometimes you wouldn’t even know, and the money is gone. And, by the time you find an unknown transaction in the account, it is too late.

HNWIs put in place a robust anti-fraud team with the best security checks in place. The team makes sure that any unwarranted transaction is immediately reported. You are on your own, so you must check the account regularly. It is best that you sign up for transaction alerts via text messages and emails.

Keep yourself updated

These days scams are increasing rapidly. Even governments have set up helplines and social media handles to provide information on financial fraud and how to deal with them. It is highly recommended that you sign up for them.

Due diligence is your job. You must be very cautious of who you deal with. And staying updated will arm you with the right questions, the right remedies, and the right attitude.

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