How to Keep Money Safe While Studying in the US

Key Takeaways

• Adding 2FA to your banking accounts adds an extra layer of security, reducing the risk of unauthorized access and fraud.
• Always use a secure connection or VPN when managing your finances to prevent hackers from accessing sensitive information.
• Use ATMs in well-lit, monitored areas like bank branches, and inspect machines to avoid card skimming or theft.

Online scams and other illicit activities that pose risks in compromising your accounts should be avoided at all costs. Being aware of the risks and learning the best ways to protect your accounts will go a long way to keeping your money and personal information safe.

In this article, we will delve into helpful tips on how to safeguard your money while studying in the US.

Recent Scams Targeting International Students

Anyone can be a target for thieves. However, you can be at greater risk simply due to your lack of familiarity with the US banking system or by receiving a high number of emails and messages from people and organizations you don’t personally know. These scams include:

• Fake Immigration Officers: Scammers impersonate immigration officials, demanding immediate payments or threatening deportation.
• Payment App Fraud: Scammers trick students into sending money via apps by pretending to be acquaintances or government authorities.
• Phishing and Fraudulent Emails: These are emails disguised as official communications from universities or banks to steal personal information.
• Scholarship and Grant Scams: Fake scholarship offers ask for application fees or personal details, which are then misused.

Now that you have an idea of the most common money scams, we will discuss a few helpful tips on how to keep your money safe.

Tips to Keep Your Money Safe While Studying in the US

Understand the Local Banking System and Fees

Before studying abroad, it's always important that you need to learn how the local banking system works to avoid unnecessary fees and ensure easy access to funds. Each country has different banking practices, and understanding them can save both time and money.

Remember the Following

• Account Types: Research local banks and fintech companies, like Adro, to find accounts that cater to students or offer low or no fees.
• Transaction Fees: Be aware of foreign transaction fees, ATM fees, and withdrawal limits to manage costs effectively.
• Currency Exchange Rates: Understand how currency conversion works and which companies offer the best rates.

Use Two-Factor Authentication

Two-factor authentication (2FA) adds an extra layer of security to your bank accounts, making it harder for unauthorized users to gain access. It usually requires a password and a second verification step, such as a unique code sent to your phone.

Why is it Important

• Protects Against Unauthorized Access: Even if someone knows your password, they need the second factor to access your account.
• Easy to Set Up: Most banks offer 2FA which is enabled through your online banking settings.
• Reduces Fraud Risks: Strongly limits the chances of being a victim of online fraud.

Bring a Mix of Payment Methods

Having multiple payment options ensures you’re prepared for any situation while studying abroad. Relying on just one form of payment can be risky in case of theft, loss, or any technical issues.

Examples

• Cash: Carry small amounts for everyday expenses but avoid large sums to minimize theft or loss.
• Credit Cards: Useful for larger purchases and offer fraud protection; choose those with no foreign transaction fees.
• Debit Cards: Ideal for cash withdrawals, but be mindful of daily limits and ATM fees.

Choose Secure ATMs and Payment Locations

Using secure ATMs and payment locations is essential to protect your money from theft or fraud while in the US. Unsafe locations can expose you to risks like card skimming or robbery.

What to Do

• Select Bank ATMs: Use ATMs located inside or directly outside bank branches for added security and monitoring.
• Avoid Isolated ATMs: Stay away from ATMs in poorly lit or remote areas, especially at night.
• Inspect Machines: Check for unusual devices attached to card slots or keypads that could be used for skimming your card details

Communicate Your Future Travel Plans

Letting your financial institution know about your travel plans helps prevent your account from being frozen due to suspicious foreign transactions. Financial institutions, like banks, monitor account activity for fraud, and unexpected charges from another country could trigger an alert.

Why is it Important

• Avoids Account Freezes: Prevents your card from being blocked while you're abroad.
• Enhances Security: Helps the bank monitor for any genuinely fraudulent activity.
• Simple Process: Most banks allow you to set travel notifications through their app or website.

Keep Emergency Contacts Handy

Having important emergency contacts readily available is important for resolving issues ASAP if something goes wrong while studying in the US. Save these contacts both in your phone and in a secure offline location.

Which Contacts Are to be Saved

• Bank Contacts: Keep international customer service numbers for your card provider to report lost or stolen cards.
• Local Authorities: Know the emergency numbers for local police and medical services.
• Family or Friends: Have a trusted contact who can help manage issues from home.

Avoid Public Wi-Fi for Financial Transactions

Public Wi-Fi networks are often notoriously unsecure, making them a hotspot for hackers to steal sensitive information like banking details. When you’re studying in the US, remember to always prioritize security over convenience.

How to be Secure

• Use a Secure Connection: Connect only through a private, password-protected network for financial activities.
• Use a VPN: A Virtual Private Network (VPN) encrypts your data, adding a layer of protection.
• Disable Automatic Connections: This prevents your device from auto-connecting to open networks, reducing exposure to threats.

Take note of these tips as they will come in handy to make sure that your finances are safe while you focus on your studies. Remembering how to keep your money safe while studying in the US will not only minimize your risk of being defrauded but will also help in keeping your data safe.