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<p style="margin-bottom: 11px;"><span style="font-size: 28px;">With data breaches and identity theft in the news practically every week, you may be wondering what you can do to secure your finances.</span></p>
<p>Here are 10 of the best measures you can take, according to experts. If you're not already doing these, it's easy to make them a part of your routine to safeguard your accounts.</p>
<h2>1. Keep crucial numbers secure</h2>
<p>One basic way to protect your finances is simply paying attention and making your privacy a priority. Don&rsquo;t print Social Security and driver&rsquo;s license numbers on the checks you write, or jot down your PINs and passwords on cards, for example, and never give your credit or debit card and PIN to someone else to use. When you&rsquo;re at an ATM, in addition to shielding the view of your PIN, look for signs a card reader has been tampered with, such as loose components or wires; that may mean the device has been fitted with a skimmer, which can record your personal information.</p>
<p>Another key precaution: If you&rsquo;re donating or discarding an old computer, wipe the hard drive to remove all your personal and financial files, says Gerri Walsh, president of the Investor Education Foundation at the Financial Industry Regulatory Authority (FINRA).</p>
<h2>2. Create strong passwords or pass phrases</h2>
<p>This is one of the most important steps to secure your accounts. What&rsquo;s considered strong? Passwords that include lowercase and uppercase letters, numbers&nbsp;and symbols, if allowed, or try pass phrases such as&nbsp;My@untLov3sCa$h, suggests Walsh. Use different passwords for each account and change them, as well as the PIN of your ATM card, regularly.</p>
<p>If you&rsquo;re having trouble remembering all your passwords, says Walsh, it may be worth the nominal fee to use a password manager that randomly generates secure passwords for your accounts while allowing you to use a simple master password. With strong encryption, it also protects PINs, CVV codes, credit card numbers&nbsp;and answers to security questions.</p>
<blockquote>
<p>If you&rsquo;re donating or discarding an old computer, wipe the hard drive to remove all your personal and financial files.</p>
</blockquote>
<h2>3. Be mindful with mail habits</h2>
<p>If you're not doing transactions digitally, it's generally safer to send bills, money or checks from the post office or an official postal mailbox rather than your personal mailbox. And it's a good idea to collect your mail daily because pre-approved credit cards, bank statements, bills and envelopes that may contain blank checks can be valuable to thieves.</p>
<p>If you do notice a bank or billing statement is missing, report it immediately, and consider switching to paperless statements.</p>
<p><img class="right_image" src="https://uat.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/GettyImages-937170888_web.jpg" alt="Man entering his credit card number into his laptop" /></p>
<h2>4. Monitor your credit</h2>
<p>The prevailing advice is to check your credit at least once a year to spot any mistakes or potential fraud, but you might consider requesting and reviewing your credit report every four months for extra peace of mind.</p>
<p>You may be able to accomplish this at no cost by visiting AnnualCreditReport.com, and alternating between the three major credit bureaus Equifax, Experian and TransUnion. Using one dedicated email address just for financial communications from banks, credit card companies and investment companies can help you streamline this too.</p>
<h2>5. Beware of fake websites</h2>
<p>Some online fraudsters <a href="https://uat.lifeandmoney.citi.com/lam/articles/money/finance-101/2023_imposter_scams_and_how_to_avoid_them" target="_blank" rel="noopener" data-link-source="tiny">mimic authentic websites</a> with fake versions meant to fool users into inputting their credentials, so you'll want to make sure you're always using a company's official site. Avoid those with a URL that starts with http rather than https, and before you click on links within an email, be certain that you know the sender.</p>
<h2>6. Avoid phishing scams</h2>
<p>Fraudulent offers can come via email, text or website, and some of the most common scams request money or personal information for various reasons: to claim a sweepstakes prize or "update" your profile, for example. Others claim the funds or data are needed because the sender's website has been hacked. Never click on links or respond to requests like these, Walsh warns; your best bet to check whether the outreach is legitimate is to call the company or institution instead.</p>
<h2>7. Shred sensitive documents</h2>
<p>Using a cross-shredder to destroy documents containing account numbers, Social Security numbers or other personal information is always advisable, says Walsh. If you don&rsquo;t have a shredder, check whether your bank sponsors a shredding event, where you can take care of this all at once.</p>
<h2>8. Share cautiously on social media</h2>
<p>Even seemingly harmless details like your alma mater or the name of your family pet can create a vulnerability (think of the common security questions used to verify your identity online), so you may want to think twice before posting anything personal.</p>
<h2>9. Be diligent with your devices</h2>
<p>To shield your information from unwanted access, consider added measures like encrypting your email and enabling two-factor authentication, which sends a one-time passcode to a trusted device whenever you attempt to sign in to an online account. At the very least, maintaining anti-virus and anti-malware protection, and setting up your computer to install updates automatically, are safety best practices.</p>
<blockquote>
<p>Using a cross-shredder to destroy documents containing account numbers, Social Security numbers or other personal information is always advisable.</p>
</blockquote>
<h2>10. Stay vigilant</h2>
<p>Kids are told, "Don't talk to strangers" &mdash; and the same advice holds true when it comes to your financial information. Don't reveal <a href="https://uat.lifeandmoney.citi.com/lam/articles/money/finance-101/Scams_for_Seniors_To_look_For" target="_blank" rel="noopener" data-link-source="tiny">personal or financial information</a> to people you don't know, whether it's by phone, email, mail or in person, and never wire money to someone who claims to be a friend or relative until you have personally contacted that individual to confirm the request.</p>
<p>&nbsp;</p>
<p><em>&mdash; With additional reporting from Life and Money by Citi editors</em></p>

10 Ways to Protect Your Personal Information Online

<p>They keep their rainy-day funds funded. Their bring-lunch-to-work game couldn't be stronger. And retirement savings? Their IRAs deserve A+'s.</p>
<p>It's tempting to think of great savers as unicorns. And with good reason: A 2018 GOBankingRates survey found that 16% of Americans have $300,000 or more in retirement savings, while 42% have stashed away $10,000 or less.</p>
<p>What do people say holds them back from saving more? A 2018 Bankrate poll indicated that expenses, underpaying jobs and debt are among the most common challenges. Life gets in the way, too: Roughly one in six respondents reported that they simply haven't gotten around to saving.</p>
<p>Whatever your reason, know that it is possible to <a href="https://www.lifeandmoney.citi.com/lam/articles/money/family/personal-financial-planning-for-families" data-link-source="tiny">start saving</a> and make a dent in debt &mdash; just take it from other people who have adopted some smart money tactics and joined the ranks of super savers.</p>
<h2>The money coach</h2>
<p>Ashley Feinstein Gerstley began her career in investment banking but came to realize the field didn&rsquo;t suit her. &ldquo;I was making a lot of money, but working long hours,&rdquo; she explains. &ldquo;I was eating take-out food at my desk every night and leaving at 2 a.m.&rdquo; After getting her annual bonus, she decided to quit and make a lifestyle change.</p>
<p>Gerstley invested in workshops and classes to help find her next career, but also splurged on dinner and drinks with friends &mdash; a habit from her days as a high earner. &ldquo;I realized pretty quickly that my bonus was almost gone, and my lifestyle was unsustainable,&rdquo; she said. &ldquo;I had to figure out my money stuff.&rdquo;</p>
<p>Through a certification with the International Coach Federation, Gerstley became a money coach. In her newfound role she not only helps clients get more organized with savings and investments, but also guides them over any psychological hurdles they encounter along the journey. Here are the top financial tips Gerstley shares with clients (and takes note of herself):</p>
<h3>1. Talk about money</h3>
<p>&ldquo;People think everyone is doing better than them,&rdquo; Gerstley says. That mindset may make you hesitant to talk or seek help with your own financial problems, and, by extension, vulnerable to unintended peer pressure to spend more money. &ldquo;Like when you&rsquo;re at dinner and there&rsquo;s pressure to have another round of drinks &mdash; another round of $17 cocktails. It&rsquo;s not [your friends&rsquo;] fault, they just don&rsquo;t know that you are trying not to spend so much money.&rdquo;</p>
<p>Share your money story &mdash; in terms you&rsquo;re comfortable with. Decline that pricey cocktail, and simply explain that you're working toward a goal &mdash; like paying off student loans or buying a car &mdash; and would rather that $17 go into a savings account.</p>
<p>Gerstley says when you speak up about your own financial concerns, you may see your friends follow suit. From there, plan less expensive gatherings, like potluck dinners and game nights. Then sock away the money you save.</p>
<blockquote>
<p>Share your money story &mdash; in terms you&rsquo;re comfortable with.</p>
</blockquote>
<p><img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/web_GettyImages-1040303974.jpg" alt="woman taking notes as she refers to her mobile device"></p>
<h3>2. Make a money journal</h3>
<p>In Gertsley's book, The 30-Day Money Cleanse, she suggests <a href="https://www.lifeandmoney.citi.com/lam/articles/money/productivity/bullet-journal-financial-planning" data-link-source="tiny">documenting every penny you spend</a> and how it makes you feel in a journal. This can help you identify the things you really care about spending money on and expenses you can cut.</p>
<p>"Like a food cleanse, if you quit dairy and sugar and coffee, you might realize that you don't miss them." Gerstley informs. This all leads up to Gerstley's main lesson: Change your money mindset. "Successful money cleansers always experience this shift where personal finance is not 'a have to,' they realize it is a gift and an act of self-love," Gerstley says.</p>
<h3>3. Put savings out of sight</h3>
<p>Many people have linked checking and savings accounts. It's convenient, allowing you to access your savings balance by transferring funds to checking. But some may find it helpful, in the spirit of better savings habits, to create at least one <a href="https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/money-market-account-or-cd-account" data-link-source="tiny">savings account</a> that is not connected to your checking account, Gerstley suggests.</p>
<p>You can still set up deposits to it through your checking account or deposit straight into it each month like any savings account &mdash; but making it separate can click something in the brain so it doesn't seem as accessible. Consider assigning this "lock box" a purpose &mdash; to cover emergencies or a home down payment.</p>
<p>Likewise, Gerstley says, "View the money in a 401(k) or IRA accounts as untouchable until you retire." They're not intended to fund a car purchase or a wedding.</p>
<h3>4. Don't delay</h3>
<p>Many people, believing that a bigger paycheck &mdash; and therefore a more forgiving budget &mdash; is always on the horizon, and put off saving till they get older. Gerstley flags this thinking as a huge problem. If you happen to lose your job or face medical issues, savings will be a crucial cushion. The time to start saving was yesterday.</p>
<h2>The frugal lawyer</h2>
<p>Holly Carroll worked as an associate lawyer at a New York law firm in her late twenties and early thirties. The money was amazing, she says, but the hours were brutal. &ldquo;I knew I couldn&rsquo;t keep it up,&rdquo; Carroll says. &ldquo;I just decided to pay off my school loans and sock away as much as I could.&rdquo; So while her fellow associates lived in doorman buildings and dined out at five-star restaurants, Carroll developed frugal habits and shared a modest two-bedroom in Brooklyn. She still went out for drinks with friends and made the occasional splurge, but she developed some smart strategies around limiting her spending.</p>
<p>When she quit, she and her husband decided to move back to her hometown of Pittsburgh, PA, where their income went much further than it did in New York. They found a&nbsp;<a href="../../index.htm" target="_blank" rel="noopener" data-link-source="tiny">three-bedroom home in her dream neighborhood</a>&nbsp;&mdash; and she had saved up enough money to pay for it in cash. Carroll is now a stay-at-home mom and avid crafter. Her top advice:</p>
<h3>1. Don&rsquo;t overspend on work attire</h3>
<p>&ldquo;When I first started at my [attorney] job, there was another associate I worked with who always looked sharp; [she] wore the same suit a few days a week and rarely wore designer heels,&rdquo; Carroll says. They were chatting one day, and her colleague explained her work dress policy: She considered money spent on work clothes as cutting directly into her salary.</p>
<p>That idea was like a light bulb moment for Carroll. She had always been a simple dresser, so she developed a strategy of sticking with a set color palette so that she could easily coordinate all of her work pieces into multiple outfits &mdash; it often seemed she had a larger wardrobe than she did.</p>
<h3>2. Set a weekly cash allowance</h3>
<p>&ldquo;I set a budget for weekly walking-around money and take out that amount in cash,&rdquo; she says, "then I try to only spend that much.&rdquo; Physically seeing how much money she has to spend usually keeps her from making impulse purchases or going shopping on a lunch break.</p>
<blockquote>
<p>Set a budget for weekly walking-around money and take out that amount in cash.</p>
</blockquote>
<p><img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/web_GettyImages-857304948.jpg" alt="two women cooking"></p>
<h2>The young saver</h2>
<p>When Haley Evans graduated from college and moved to Dallas, TX, she had very little student debt and earned a healthy paycheck. "But I spent it all on Dallas nightlife," Evans says. By age 24, she says, "I was kind of trapped in this cycle" &mdash; unfulfilled in her job, and compensating through happy hour, brunch and shopping. Evans was taking advantage of all that Dallas had to offer, but that lifestyle quickly went beyond her financial limits.</p>
<p>Now, five years on, Evans has remade herself as the model of a buckled-down saver. Her husband's pay covers daily expenses, and she puts her income toward business school and savings &mdash; both investments in her future. Here is her top advice:</p>
<h3>1. Create frugal joys</h3>
<p>A profound moment helped end her cycle of wasteful spending. "One night I was out drinking and just realized I wasn't getting any joy out of it," she says. "I felt like I wasn't really getting to have deep talks with friends since it was always so loud and it just didn't seem worth it anymore."</p>
<p>The next time a friend suggested a big night out, she countered with a nice long walk and home-cooked dinner. "I got to have real one-on-one time with her," Evans explained. "I call it finding frugal joys." Five years later, she and her friend are still doing those walks and joined a discount wine club to enhance those dinners.</p>
<h3>2. Get more out of your bank accounts</h3>
<p>One concrete piece of advice Evans offered: Find checking and savings accounts that offer high-interest rates. Evans and her husband did a lot of research to discover a savings account that offered much higher interest rates on their balance. "We put our wedding fund in there and the down payment for a house," she says. "It's awesome to see that [additional] money each month."</p>
<h3>3. Find healthy splurges</h3>
<p>"There was a period of time after [my] money cleanse where I was crazy thrifty because I am so competitive," Evans says. "But when you go too extreme, you feel deprived and then you binge." So, she figured out what regular splurges would bring her the most rewards. The top one was her gym. "I pay $105 a month &mdash; which is a lot for a gym here &mdash; but it brings me so much joy. It's community and women-based, and I go at least three to four times a week."</p>

The Secret Habits of Super Savers

<p>Here's how credit works, in a nutshell. A lender, card issuer, bank or grantor gives you a set amount of money to use with the expectation you'll repay it according to agreed-upon terms. Those terms can include repayment dates, required minimum payments, interest rates, fees and more.</p>
<p>Credit comes in many forms. Your own personal use of credit may include mortgages, car loans, student loans, credit cards, personal loans, home equity loans, or lines of credit and consolidation loans.</p>
<p>Your creditworthiness, meanwhile, is determined by your reported credit history. A credit report typically includes:</p>
<ul>
<li>The name(s) under which you&rsquo;ve obtained credit</li>
<li>Your current and prior addresses</li>
<li>Information on your credit cards and revolving lines of credit, such as the age of the account, the balance, your credit limit and the timeliness of your payments</li>
<li>Details about the loans that are in your name</li>
<li>Specifics of accounts that you may have closed within the last several years</li>
<li>Notes on any outstanding debts that have gone to collections</li>
<li>Notes on any bankruptcies, foreclosures and repossessions that have happened within the last several years</li>
<li>A listing of any businesses and individuals who have requested your credit report within the last two years</li>
</ul>
<p>Keep in mind that your credit report won&rsquo;t include information on your investment accounts, debit or prepaid cards, bankruptcies that are more than a decade old, debts sent to collections that are more than seven years old, or personal information like gender, race and religion.</p>
<p>It also won&rsquo;t include your credit score, the number that represents a prediction of your credit behavior, such as how likely you are to pay a loan back on time, based on information from your credit reports -- though you may find this on your bank, credit card or loan statement. Higher scores indicate responsible credit behavior in the past, which can result in more favorable terms and interest rates from lenders.&nbsp;</p>
<p>Credit scores generally range from 300 to 850. According to one major credit bureau, credit scores 670 to 739 are considered good, 740 to 799 are considered very good, and 800 and up are considered excellent. In addition to your credit score, lenders may also consider any prior history you may have had with them as part of the credit decisioning process.</p>
<p><img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/how-credit-works_body-1_1359420138.jpg" alt="A man sits on his couch and reviews a bill"></p>
<h2>Why a credit report matters</h2>
<p>A number of businesses may request permission to view your credit report, and before extending you a loan or line of credit, a potential lender will want to assess your creditworthiness. Combined with the other details of your credit application, the report determines whether the loan or line of credit is approved and what the terms are. Existing creditors may also want to review your credit history on a regular basis or whenever you're looking to make a change <ins cite="mailto:Goldberg,%20Betsy%20[CLIENT-MCO]" datetime="2024-06-30T23:39">-- </ins><del cite="mailto:Goldberg,%20Betsy%20[CLIENT-MCO]" datetime="2024-06-30T23:39">(</del>say, renegotiating loan terms (if you&rsquo;ve gotten a raise at work, perhaps) or increasing your credit card spending limits<del cite="mailto:Goldberg,%20Betsy%20[CLIENT-MCO]" datetime="2024-06-30T23:39">)</del>.</p>
<h2>Why a credit score matters</h2>
<p>When you conduct business with people or companies, they have an interest in your financial health, too, and may require credit information. Here are a few examples:</p>
<ul>
<li><strong>Utility companies</strong> offer you a form of credit, since they provide a service and trust you'll pay every month, so they may want to see how well you've kept up with your utility payments in the past.</li>
<li><strong>An insurance company&nbsp;</strong>can, in most U.S. states, use a version of your credit score in calculating the premium you'll pay for auto, home or renter's insurance.</li>
<li><strong>A landlord</strong> may also require that you meet specific credit criteria to rent a home or apartment.</li>
<li><strong>A potential employer</strong> may run a check to project your ability to handle customer money or even assess your potential to defraud the company if faced with financial trouble.</li>
</ul>
<p>If you're seeking financing for a big purchase, such as a house, car, motorcycle, home renovation or furniture, you should anticipate a credit check as well. People with a credit score of 800 or higher are typically offered easy loan approval, some of the best interest rates, higher card limits, access to exclusive perks or rewards and the most options for structuring a loan.</p>
<h2>Top tips for building credit&nbsp;</h2>
<p>Credit advice can vary depending on where you are on your financial journey. For instance, if you've never used credit before, you might wonder how you can apply for a credit card when you don't have credit history for a lender to review. Here are three main options:</p>
<ul>
<li><strong>Apply for a traditional credit card</strong>. A bank with which you already do business may be able to offer an unsecured credit card, which doesn&rsquo;t require a security deposit.</li>
<li><strong>Consider a secured credit card</strong>. With no credit history, it's possible you'll be turned down for a traditional, unsecured credit card. A secured credit card is often used as a starter card to help build or rebuild credit history. It requires you to make a cash deposit as collateral before opening an account. Your best bet is to go with a credit card issuer that reports to credit bureaus so that, with timely payments, you'll have the opportunity to build a stronger credit history.</li>
<li><strong>Become an authorized card user</strong>. If your parent, spouse, or other person you trust is willing, they could add you to their credit card account. If their card issuer reports on authorized users to the credit bureaus, you may be able to start building a financial history for yourself. But keep in mind: Some credit scoring models don't give authorized users' activity as much weight as that of primary cardholders.</li>
</ul>
<p>Already a credit user? It pays to assess your existing credit cards regularly. Ask yourself: Does your current credit score qualify you for better terms or even more exclusive cards? Have your spending habits or life circumstances changed since you first got your cards? Are there new cards on the market that are a better fit for you? Your answers might prompt you to make some strategic changes.</p>
<p>Keep in mind that, regardless of whether you&rsquo;re already a credit user or just starting out, it&rsquo;s important to always read the fine print before you get a new card or open a line of credit. You&rsquo;ll want to understand your credit limit, the annual percentage rate (APR), annual fee amounts, maintenance fees, surcharges, grace periods and more.</p>
<p>Once you have some credit available to you, it&rsquo;s up to you to build and maintain a clean history of borrowing and repayment. In general, the value of your credit score will depend upon these factors:</p>
<ul>
<li>Timeliness of your bill payments</li>
<li>Amount of credit you use</li>
<li>Amount of credit available to you</li>
<li>Length of time you&rsquo;ve been using credit</li>
<li>Types of credit and loans you utilize</li>
<li>Frequency with which you request additional credit</li>
</ul>
<p>Additionally, you&rsquo;ll have better success in building your credit if you follow a few guidelines:</p>
<ul>
<li><strong>Do</strong> pay your bills on time <i>every</i> time. Late payments on your mortgage, student loans, credit cards, utilities and other expenses can all adversely affect your credit report.</li>
<li><strong>Do</strong> limit the amount you charge on your cards relative to their credit limits. This percentage is known as your credit utilization ratio. Very high utilization may negatively impact credit health.&nbsp;</li>
<li><strong>Do</strong> keep your older credit cards active. They can add to the length of your credit history and may contribute valuable points to your credit score.</li>
<li><strong>Don&rsquo;t</strong> use credit to fill a gap<strong>. </strong>It&rsquo;s easy to dig yourself into debt by splurging on lifestyle perks you can&rsquo;t afford.</li>
<li><strong>Don&rsquo;t</strong> believe the myth that carrying a credit card balance builds your credit. If you can pay off your cards every month, do it. You&rsquo;ll avoid costly interest payments.&nbsp;</li>
</ul>
<h2>Smart ways to monitor your credit</h2>
<p>Regularly tracking your progress is a good way to see how your efforts are helping your credit score and to identify any factors that may be slowing you down.</p>
<p>Start by reviewing your credit report. You&rsquo;re legally entitled to receive a free credit report from each of the three major credit bureaus every year. Pull them all at once or separately in three stages over the course of the year.</p>
<p>Read the report thoroughly to confirm that all the information provided is current. Is your address correct? Is the data reported for each of your accounts accurate? Is there activity or an account that&rsquo;s unfamiliar to you?</p>
<p>Your credit history is an invaluable tool in helping you catch small problems before they grow into bigger ones. For instance, you may find that a bill you thought you paid is listed as past due or that a loan you co-signed isn&rsquo;t being paid off on schedule.</p>
<p>If you find incomplete or inaccurate information, immediately contact the credit agency from which you received the report. Faulty information can mar your financial history and lower your credit score.</p>
<p>At the same time, credit report errors can also indicate identity theft. If you suspect you&rsquo;re a victim, place a fraud alert on your credit report to prevent someone from opening new lines of credit in your name. If your credit card has been misused, you can contact your card issuer to cancel the card and initiate a dispute and file a police report with your local precinct. You might also consider signing up for a credit monitoring service.</p>
<p>Because your credit history report doesn&rsquo;t include your numeric credit score<ins cite="mailto:Goldberg,%20Betsy%20[CLIENT-MCO]" datetime="2024-07-02T16:22">,</ins> <del cite="mailto:Goldberg,%20Betsy%20[CLIENT-MCO]" datetime="2024-07-02T16:22">so </del>you&rsquo;ll want to review that as well. Pay attention to the &ldquo;risk factors&rdquo; or &ldquo;potentially negative items&rdquo; that are included with your score. These elements indicate what&rsquo;s keeping your score from being even higher, such as high balances or frequent late payments, and the section may also offer insight into how you can improve your score. Putting all of this information together helps make it easier to not only build (or rebuild) your credit but also helps<ins cite="mailto:Browne,%20Patricia%20[LEGL]" datetime="2024-07-17T19:05"> </ins>set yourself up to reap the benefits of a healthy score.</p>
<h2><img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/how-credit-works_header_1132926273_0.jpg" alt="A woman enters her credit card information on a laptop"></h2>
<p><i>&mdash; With additional reporting from Life and Money by Citi editors.</i></p>
<p>&nbsp;</p>

Most people know what credit is — at its core, it's borrowed money — but understanding and managing your credit report can be tricky. It helps to break down the concept. 

How Does Your Credit Score Work? Here's a Quick Guide.

<p>If it seems like you&rsquo;re always seeing news headlines about scams, it&rsquo;s probably not your imagination; reported losses from fraud reached an all-time high last year. Federal Trade Commission (FTC) data shows that consumers reported being swindled out of a whopping $10 billion to scammers &mdash;&nbsp;$1 billion more than 2022.</p>
<p>To help you stay vigilant, we&rsquo;ve compiled a snapshot of eight prevalent scams, including how to spot them and what to do to make sure your funds are protected.</p>
<h2>1. Sweetheart scams</h2>
<p><strong>How they work:</strong> Scammers capitalize on the popularity of dating sites or apps by setting up a fake profile to establish<s>in</s>g online relationships with victims. Once they gain your friendship and confidence, they encourage you to <a href="https://www.lifeandmoney.citi.com/lam/articles/money/investing/investment-scams-are-a-3-billion-problem-here-s-how-to-steer-clear" target="_blank" rel="noopener" data-link-source="tiny">get in on a so-called investment opportunity</a> or they ask for money (say, for an emergency or to come visit you) or private, sensitive information such as where you work or live.</p>
<p><strong>What to do:</strong> Act on your instincts. If you feel like this person is coming on too strong &mdash; asking personal questions, pushing an investment opportunity or requesting money, for example &mdash; &nbsp;notify the dating site or app and hit delete on their profile.&nbsp;</p>
<h2>2. Grandparent cons</h2>
<p><strong>How they work: </strong>Someone posing as a relative sends an email or calls you saying he or she is in trouble and needs you to&nbsp;send money right away. In some cases, the voice on the line may sound just like your relative if the scammer has tapped into the rising trend of using an AI &nbsp;voice cloning program. The scammer asks you not to tell anyone they&rsquo;re in a crisis, such as a car accident or arrest, and directs you to a neighborhood location to transfer or send the funds.&nbsp;</p>
<p><strong>What to do:</strong> No matter how convincing it sounds, don't fall for this tale of woe. Notify police immediately and provide them with the details for wiring the money, if you have it. Additionally, alert the individual who the scammer was impersonating and let other friends or family members know that this took place.</p>
<p><img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/GettyImages-1067418572_web.jpg" alt="Man with white hair and a white beard in an orange sweater sits in a chair with a laptop in his lap"></p>
<h2>3. IRS frauds</h2>
<p><strong>How they work:</strong> Beware of calls, letters and emails from fake IRS agents about bogus tax bills, instant windfalls or exemptions from filing or paying taxes. They use the authority of the agency to scare their victims into verifying personal information, such as your Social Security number or birth date, or providing or confirming financial information like your bank's routing number or a credit card number.</p>
<p><strong>What to do:</strong> Hang up if you receive such a phone call. The IRS will never ask for this information or for any payment over the phone or in an email. If you receive a letter from the IRS, do not call the number on the letter. Instead, do a quick online search for the phone number of the IRS, and call that one to find out if the letter is valid.</p>
<h2>4. Telephone scams</h2>
<p><strong>How they work:</strong> Scammers call, selling fake products or pretending to be customer service representatives. What they're really after is your financial and personal information. They're masters at making conversation and will try to keep you on the phone to win your trust. (In fact, a recent FTC report cited that telephone scams make up the highest per-person fraud loss.) &nbsp;</p>
<p><strong>What to do: </strong>Hang up immediately. Unless you initiate the call to a trusted company, do not buy anything over the phone. Consider placing your number on the Do Not Call Registry. Better yet, if you don&rsquo;t recognize the number, let the call go to voicemail. If the caller is legitimate, they&rsquo;ll leave a message.&nbsp;</p>
<h2>5. Lottery/Sweepstakes hoaxes</h2>
<p><strong>How they work:</strong> Someone contacts you about winning the lottery or a sweepstakes. And, to claim the prize, the caller asks you to pay a processing fee by sending money, paying with credit card or debit card from your checking account. The caller may also ask you to confirm personal information like your credit card account numbers, birth date or Social Security number.</p>
<p><strong>What to do:</strong> Be on alert &mdash; the FTC reported that email is the top way scammers contact potential victims. Keep in mind that legitimate promotions never ask you to pay to receive a prize. If you receive an email that seems off, report this to your local authorities or to the FTC at ReportFraud.ftc.gov.&nbsp;</p>
<h2>6. Email/Text ploys</h2>
<p><strong>How they work:</strong> These scams, also known as phishing scams, inform you that a company&rsquo;s website has been hacked or that the company needs to update your information. You get directed to a fake website that looks official and very similar to the real one and are asked to enter your password or re-enter personal information.</p>
<p><strong>What to do:</strong> Only click on links or open attachments within emails from senders you know. When in doubt, contact the company directly using the phone number on a statement or on their website.&nbsp;</p>
<h2>7. Fake fundraisers</h2>
<p><strong>How they work:</strong> Scammers know that people are particularly generous around the holidays or when natural disasters or other global crises happen, so they pose as representatives with a charity or other organization seeking donations. They typically ask that you give money by using a credit card or a direct debit from your checking account. They don't accept mail-in donations, citing that the cause is urgent and needs your immediate attention.</p>
<p><strong>What to do:</strong> Be certain you are interfacing with a recognized charity when donating over the phone or online, whether it's to police organizations or a cancer-fighting cause. To be on the safe side, consider looking up the group's physical address and mailing your donations directly. It&rsquo;s also helpful to review the <a href="https://consumer.ftc.gov/shopping-and-donating/donating-charity" target="_blank" rel="noopener" data-link-source="tiny">FTC&rsquo;s guidelines for donating wisely</a>.</p>
<h2>8. Delivery gimmicks</h2>
<p><strong>How they work:</strong> Online shopping has increased the last few years and scammers have found ways to capitalize on that. They&rsquo;ll send an email, call or leave a tag at your door about a missed package. Instructions to receive the package may include having to open a link and enter personal information or verifying account or credit card information with an operator.&nbsp;</p>
<p><strong>What to do:</strong> <s>&nbsp;</s>Avoid clicking on links from senders you don&rsquo;t recognize or making payments online or over the phone &mdash; legitimate delivery services will not require giving personal financial information.&nbsp;</p>
<p>Ultimately, if you do become a victim of a scam, don't feel ashamed. Report it to your local police and notify your bank and credit card companies immediately. And be sure to alert family and friends so they don't fall prey, too. For more information about scams and scam prevention, visit citi.com/fraudprevention and the FTC&rsquo;s Scam Awareness page.<i>&nbsp;</i></p>
<p><i>--With additional reporting from Life and Money by Citi editors</i></p>

Consumers are reporting more losses than ever due to fraud. These tips can help you keep  your money safe from common scams. 