Tips for Protecting Your Finances in a Digital Age

As the world moves towards a more cashless and digital society, scams are popping up more frequently, and anyone can fall victim to them. While diversifying your sources of income, making smart investments, and maintaining a healthy emergency fund would be key to financial security, it’s also good to stay mindful of the safety aspects of finance. Simple habits like being cautious with electronic payment habits and keeping an eye out for scams can make a difference.

Practice Safe Electronic Payment Habits

The advent of technology has made monetary transactions through electronic payment methods convenient, making cash almost a thing of the past. However, this convenience comes with the risk of unauthorised transactions. Here are two easy tips to help you stay safe.

Tip 1: Always ensure that you link your e-payment methods to an active mobile number to receive transaction alerts via email and/or SMS. These notifications act as proof of transaction and help you spot any unauthorised activity quickly, so you can report it to your bank.

Tip 2: It’s also wise to keep your devices, such as your phone or laptop, updated with the latest security patches. For an added layer of protection, consider installing antivirus software from reputable providers. Additionally, always keep your banking account password and OTPs private. Using a password manager securely stores your usernames and passwords, while safeguarding against threats like keyloggers and phishing attempts.

Only Engage With Regulated Professional

While professional finance services have existed long before today’s digital age, the rise of social media has led to an influx of finance influencers who portray themselves as successful and wealthy entrepreneurs and are often eager to guide you to financial freedom – typically for a hefty fee and without many nuances!

It is always a good idea to consult financial advisors who are licenses and regulated by the Monetary Authority of Singapore (MAS). This ensures you’re receiving advice from qualified professionals operating within the MAS’s regulatory framework. You can do that using different verification methods.

Tip 3: Use the Financial Institutions Directory to see if the person or company they represent is regulated by MAS to operate in Singapore. For a more direct search, you can refer to the MAS Register of Representatives, which lists the names of representatives appointed by financial institutions. You simply need the representative’s number to confirm their status.

If you want to stay informed about institutions and individuals to avoid, consult the Investor Alert List. This resource compiles unregulated persons and companies, both local and overseas, that have been wrongly perceived as licensed or authorised by MAS in the past.

Cautioning Against Investment Scams

You might have received unsolicited invitations to WhatsApp or Telegram groups like “Forex Trading Buy Now,” featuring false endorsements that use public figures and celebrities, and overly enthusiastic “investors” welcoming you. These setups often lure victims into purchasing specific stocks of financial products, only for scammers to be uncontactable once money is transferred.

Inflation has led to a surge in budding investors who, unfortunately, are prime targets for these scams. A key red flag is the promised of guaranteed returns. Legitimate investments never offer such assurances, especially with claims of high returns.

Some practical tips to protect yourself:

Tip 4: Scammers often use pressure tactics like limited time offers and gifts to rush you into investing. Like pyramid schemes, they may offer commissions for referrals, incentivising existing customers to join. As always, when in doubt, refer to the resources available on the MAS website for guidance.

Tip 5: Moreover, to protect yourself, Standard Chartered offers an added layer of security with its Money Lock function. This anti-scam feature allows you to lock away funds you don’t frequently need, preventing unauthorised transactions. It’s a simple way to keep your money safe from potential scams while maintaining access to your resources when you need them.

Protecting Yourself from Impersonation Scams

Impersonation scams are on the rise, with fraudsters pretending to be trusted entities like financial institutions, government agencies, telecommunications companies, etc, or even people you know, to swindle your money. These scams often come through emails, text messages or phone calls that appear legitimate; but they are designed to deceive and steal personal and sensitive information such as passwords, Singpass login credentials, online banking credentials, OTP and credit/debit card details.

Be vigilant against phishing attempts involving unsolicited messages with suspicious links, QR codes, or fake websites mimicking official ones. While phishing messages used to be easier to spot due to errors in grammar or spelling, advancements in generative intelligence have made them more convincing and harder to detect. Even so, there are still key warning signs to look out for:

Tip 6: Watch out for intentional misspellings in fake website URLs and the absence of “https” in the website address. Phishing messages frequently use urgent and demanding tone to create panic and trick you into sharing sensitive information.

Tip 7: To further protect yourself, only download apps from trusted sources like the Google Play Store and Apple App Store. These platforms have safeguards in place to detect and remove harmful apps that could steal your personal information.