Micah 2:1-3 Woe to those who plan iniquity, to those who plot evil on their beds! At morning’s light they carry it out because it is in their power to do it. They covet fields and seize them, and houses, and take them. They defraud people of their homes, they rob them of their inheritance. Therefore, the Lord says: “I am planning disaster against this people, from which you cannot save yourselves. You will no longer walk proudly, for it will be a time of calamity.
Most recent revelations of the multibillion-dollar fraud and irregularities uncovered at Stocks and Securities Limited (SSL) has placed some Jamaican financial institutions into sharp focus. The mounting cases of employees stealing from clients’ accounts at these institutions, have now understandably made a lot of persons anxious about their fund’s security in the bank. There are a lot of questions being asked in varying quarters; how could this happen? What security mechanism are in place? How effective are the compliance and internal audit departments?
Notwithstanding, there are several ways to protect yourself from frauds and with some arrangements, you can make it fairly challenging for you not to become one of the statistics.
Monitor your Accounts
Keep an eye on your bank and investment accounts with periodic checks. Doing so could help you detect fraud and errors early, and it may prevent things from getting out of hand. The most important things to watch for are:
- Withdrawals from your accounts
- Change of address notifications (email or mailing address)
- New bank accounts linked to your accounts
- Unexpected logins from new devices
- Any other unexplained activity
If any of the above is noticeable; contact your financial institution immediately if you see something you don’t understand.
Never Share Passwords
You may feel very comfortable with your financial advisor, but “NEVER” provide them with your login credentials. It may be convenient for them to just log in and take care of everything for you. But that’s risky because there’s virtually no limit on what somebody can do while logged into your account. For example, they may be able to:
- Set up transfers and payments to themselves
- Change the password, effectively locking you out (until you clean up the mess)
- Change your physical and email addresses to prevent you from getting updates (although you should get a notification when this happens)
- Take additional actions that are harmful to your finances
If you want somebody to help you accomplish something online; instead of sharing your passwords with your financial advisor, ask them to coach you through the process. If you insist on letting them type and click on your behalf, be present and maintain control whenever they do something in your accounts. At a minimum, it’s critical to be sitting next to them and watching everything (or sharing your screen and allowing control which you can revoke instantly if they do anything inappropriate).