Financial institutions should take the initiative to provide clients with valuable knowledge to protect their identity and finances by implementing a fraud education program. What should a financial institution’s fraud education program include? Start with these seven key takeaways:

1. Recognize phishing attempts: Clients should understand common tactics used in phishing and exercise caution with emails by checking the sender’s address for anything unusual. Clients should know to be cautious if they receive an unscheduled or unexpected email. Advise them not to click on any links or attachments, to close the email, and to verify its legitimacy when unsure. Clients should also protect themselves by not clicking on pop-ups claiming their computer is infected, as they may be installing malicious software (malware) on their devices.

   Clients should also be wary of social media scams. While interacting with friends and family online can be a fun pastime, social platforms are a feeding ground for fraudsters. According to the FTC, $2.7 billion was lost to fraud through social media between January 2021 and June 2023. Romance scams, fake profiles, and deepfakes are growing at an alarming rate. Consumers must understand these tactics.

2. Protect personal information: Clients should create a strong password by incorporating a mix of letters, numbers, and characters. Explain the importance of avoiding easily predictable passwords like birthdays, children’s names, or home addresses. Advise clients to change their passwords regularly and refrain from using the same password across multiple accounts. Clients should know to maintain confidentiality by not sharing their passwords or any personal information online or over the phone with others.
3. Monitor account activity: Clients should frequently check their credit reports, online balances, and account statements to spot any fraudulent activity and report it immediately to their financial institution. Highlight the significance of setting up transaction alerts for immediate notification of any suspicious activity.
4. Use secure networks: Emphasize the dangers of conducting financial transactions on public Wi-Fi networks and encourage using secure and private networks when accessing online banking or making transactions. Educate clients on how to avoid fraudulent websites by understanding what is authentic and secure. When conducting financial transactions online, clients should look for a lock icon on the browser’s status bar or a Web site URL that begins with “https:” rather than “http:” (the “s” means secure).
5. Use multi-factor authentication: Advocate for your clients to adopt multi-factor authentication (MFA) to add an extra layer of security. Guide customers on how to enable and use MFA features for their accounts.
6. Remember to log off: Bank customers and credit union members should sign off secured networks when they have finished online banking or other sensitive websites. It is also important to log off their computer to prevent unauthorized access to your information and files.
7. Learn about new and emerging threats: Keep clients informed about fraud trends and tactics. Provide resources and updates on new threats, ensuring customers can stay ahead of evolving risks. The U.S. senior population, those over 60 years of age, are particularly vulnerable, and education efforts should have specific resources for this segment of clients.

Fraud is a persistent threat that continues to grow, and education is a powerful weapon. Financial institutions have the unique opportunity to be both trusted partners and educators, guiding their clients toward safer financial practices.