In this blog post, we will provide suggestions and advice for anyone looking to prepare for a loss of income, protect themselves from rising scams, and guard access to their accounts in the event that they suddenly need to leave the country. 

Preparing for a Loss of Income 

While preparing for loss of income is never easy, there are some things you can do ahead of time to lessen the potential impact.  

1. Assess your finances – How much cash do you have on hand? How does that compare to non-negotiable monthly expenses like rent, bills, transportation, food, and debt payments? If you don’t have at least 3-6 months of living expenses saved, consider reducing unnecessary expenses or taking action with some of the steps below. 
2. Reduce unnecessary expenses – If you are worried about losing your job (or have already lost your job), consider how you can reduce your spending. Here are some ideas:
   1. Consolidate your debt – If you have debt from multiple sources, this can make dept repayments easier to manage and potentially reduce the interest and monthly payments. 
   2. Eat out less – If you are able to find affordable options you can make at home and eat before meeting up with friends or loved ones (or suggest free activities instead), this can save a lot of money. 
   3. Reduce utility costs – Turn off power strips when not in use, opt for socks and blankets over heaters (if possible), open windows instead of using fans, try not to leave the water running during tasks like dishes, etc.   
   4. Reduce subscriptions – You probably don’t need 5 different streaming services, and, while convenient, that free two-day shipping you pay a yearly fee for might also be making it too easy for you to find things to buy.
3. Diversify your investments – If you have investments, consider rebalancing them. Even if you don’t lose your job, making sure you have investments across different asset classes, geographies, and risk levels will help you minimize potential losses from an unstable economy.
4. Continue planning for retirement – It may be tempting to pull back from retirement savings during challenging times, but you still want to ensure a reliable income for yourself that continues even after you get through the current uncertainties. Check out our step-by-step guide to saving for retirement for additional guidance. 
5. Look into additional income streams – The best way to prepare for lost income is to have additional sources of income.  Leverage your skills to offer freelancing/consulting, find passive income opportunities, start a side business, or consider flexible side jobs like rideshare or delivery. 

Protecting Your Accounts 

During times of turmoil and uncertainty, scammers often take advantage of people’s vulnerability and fear. For example, during the COVID lockdown, Barclays reported a 66% increase in reported scams.  

With the constantly increasing technology, scams are only getting more challenging to identify, so we must remain vigilant and know how to protect ourselves and our accounts against fraud. 

Common scams to watch out for during these times: 

• Employment scams – With the challenging job market, AARP’s sources all reported rises in employment scams that involve fake job listings or offers as a way to steal personal information and money. Legitimate jobs should involve phone calls and in-person/Zoom interviews. If you’re being offered jobs you didn’t apply for, if the job seems too good to be true, or if you’re being asked to pay for training or job-related items upfront, it’s probably a scam.  
• Immigration scams – There has been a rise in immigration scams that include impersonation of immigration lawyers (particularly on social media platforms) or any calls involving threats (like falsely claiming that ICE or USCIS are on their way to arrest you unless you pay). Look out for fake websites that mimic official government ones, pay attention to how you should be receiving information regarding application statuses, and check that any immigration attorney is licensed by confirming with the state bar association website. 
• AI scams – Artificial intelligence is advancing and making it harder to determine what’s real and fake, even imitating likeness and voices. Romance scams are getting more convincing, which is a particular concern if you have a partner living in another country. Some scams are also imitating company executives or financial institutions to get personal information and money. The general rule of thumb is that if the request is unexpected and urgent, reach out to a verified source separately to confirm the request (call your bank or company’s call center or set up a safe word with family members). 

While we can be aware of potential scams, fraud that happens due to security breaches can be out of our control. Protect your financial accounts and data by following these steps: 

1. Monitor your account activity – Check daily for suspicious activity and contact your credit union or bank if you notice something out of the ordinary.  
2. Use strong passwords – Use complex passwords that include numbers and symbols and update them regularly. McAfee recommends every three months, or when there is a concern or change with your account. Use a password keeper if you need help keeping track. 
3. Set up transaction alerts – Get notified when any transactions are made.
4. Use payment methods with fraud protection – This includes mobile pay and credit cards.
5. Switch financial institutions – Research your bank’s cybersecurity measures. If breaches or fraud have been reported, it may be best to investigate other banking options. Don’t forget to consider credit unions, which often have better rates and offers for members. 

Increasing Account Access if You Need to Leave the U.S. 

Whether you are in the U.S. or another country, it’s important to ensure you have access to your accounts whenever and wherever you may need them. To help you prepare for a sudden departure from the U.S., we’ve developed steps you can take today to give yourself the most flexible access to your funds: 

1. Keep your contact information up to date on your account, and pay special attention to make sure these items are current:  
   • Cell phone number 
   • Email address
   • Signature card 
   Having an accurate cell phone number and signature on file will allow you to perform most account actions from abroad.
2. Get an ATM or debit card or double-check the expiration date on your current cards. Unexpired ATM/debit cards will give you the easiest access to funds in your account while you are in other countries. If you plan on leaving the country, notify your financial institution to ensure prompt access to your funds. If you leave the country unexpectedly, a joint account holder who is still in the U.S. can also update out-of-country permissions.
3. Add a trusted second person to your account. Having someone who is likely to remain in the U.S. while you are abroad will offer flexibility in how you want to manage your money in your account. Keep in mind that they will have access to funds, permissions, and information on the account, so make sure it is someone you really trust. 
4. Consider appointing a financial power of attorney. This means that you as the account holder would choose a trusted person who can legally act on your behalf regarding your finances. Depending on how the document is worded, this could allow them to make transactions without your presence. 

Your funds are generally safer when they remain in your account so that your trusted financial institution can work to keep them protected, no matter where you are. Reach out to your financial institution today for guidance on making any updates. If you are a Self-Help member, you can call our contact center or stop by your nearest branch to connect with a staff member. 

For additional resources, please check out The Resurrection Project and the National Immigration Legal Services Directory.