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Your Portfolio Has a New Enemy: Fraud Thumbnail

Your Portfolio Has a New Enemy: Fraud

Insights

When people think about risks to their financial future, they often focus on market volatility or economic uncertainty. However, one of the fastest-growing threats to financial security is fraud.

From phishing emails and text scams to AI-generated impersonation schemes, today's criminals use sophisticated technology and psychological tactics to exploit trust, create urgency, and gain access to sensitive information. A single click, compromised password, or convincing phone call can lead to significant financial and emotional consequences.

Why Fraud is so Prevalent

A few simple realities help explain why cybercrime remains prevalent:

  • If vulnerabilities exist, someone will attempt to exploit them.
  • No system is completely secure.
  • Human behavior is often the easiest target.
  • New technologies create new opportunities for criminals.

Many successful attacks aren't highly technical. They rely on weak passwords, outdated software, or convincing someone to act without thinking. According to the Federal Trade Commission, consumers reported over $12.7 billion in fraud losses last year.


Common Fraud Threats

Some of the most common scams today include:

  • Phishing emails and text messages
  • Account takeover fraud
  • Bank impersonation scams
  • Fake investment opportunities
  • Identity theft
  • AI-generated scams and deepfakes
  • Business email compromise


Simple Ways to Protect Yourself

Use Strong Passwords

Strong passwords remain one of your best defenses.

  • Use at least 15 characters
  • Consider a passphrase instead of a single word
  • Include a mix of letters, numbers, and symbols
  • Avoid personal information such as birthdays or pet names
  • Use a password manager to create and manage passwords like Dashlane

Enable Multifactor Authentication

Multifactor Authentication (MFA) adds an extra layer of protection by requiring a second verification step before access is granted. Even if a password is compromised, MFA can help prevent unauthorized access.

What to Do If You Suspect Fraud

  • Contact your financial institution and financial advisor immediately
  • Change passwords on affected accounts
  • Enable or update MFA
  • Run malware scans on your devices
  • Monitor accounts closely for suspicious activity
  • Place a fraud alert or credit freeze with the major credit bureaus if necessary
    • Credit Bureau Contacts
      • Equifax: 800-525-6285
      • Experian: 888-397-3742
      • TransUnion: 800-680-7289

Fraud prevention is no longer just an IT or banking issue. It is a personal responsibility that affects anyone who participates in today’s digital world. Cybercriminals are becoming faster, smarter, and more sophisticated, but most attacks still depend on the same vulnerability: human behavior.

The good news is that a few simple habits can dramatically reduce your risk. Using strong passwords, enabling multifactor authentication, adopting passkeys where available, keeping software up to date, and pausing before responding to unexpected requests all create layers of protection that make you a much harder target. You do not need to be perfect; you simply need to be prepared. In cybersecurity, awareness is often your strongest defense.

At Woodward Financial Advisors, we know that financial security and digital security are increasingly connected. If you have questions about protecting your accounts, recognizing fraud attempts, or building safer financial practices, our team is here to provide guidance and help you navigate these risks with greater confidence.


Check out our latest "Your Money in 20" podcast episode: Ep. 43: How Scammers Are Stealing Billions

 

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