Tragedically, the number of scams pulled each year is on the rise. If you’re thinking about traditional scams, you are right.
But we have more to fear in this age than ever before—online scams! A quick look at theFBI scammer list should give you an idea of what’s at stake.
What are Online Scams?
Online scams are fraudulent activities that take place on the internet and are committed using computers or any online technologies.
Online scams, cybercrimes, internet frauds—whatever you wish to call them—are not going away anytime soon. Neither is any individual immune from such attacks. Organizations (large, medium, and small) and individuals are all susceptible to one or more forms of Internet fraud.
What do you stand to lose?
A lot of times, money is not the only aim. In the event of an internet scam, you stand to lose important data like credit card details, your social security number, and other sensitive personal data.
Now, organizations are mandated by data protection laws around the world to implement data protection strategies. So, there is no problem at that end.
What about your end as an individual? How can you protect your data and money from malicious entities online?
This article gives you enough insight into:
- Online scams
- It’s types
- Common examples
- How to avoid falling victim and
- What to do when scammed.
Online scam attacks can be categorized into the following categories:
Phishing: conning victims to divulge personal and financial data through emails, text messages, etc.
Malware: This is the use of malicious software to damage or disable the devices of victims. And also steal personal data.
Ransomware: this is a type of malware that stops users from accessing data and then demands payment (ransom) to fix it.
Denial of service: cuts access flow to a website or online service for negative purposes.
Data breach: This affects organizations and individuals alike. It involves stealing confidential or personal data from a secure location to an insecure one for malicious intent.
Types of Online Scams
Online scams come in varying forms. According to a 2023 FTC report, one in every four scam victims says it started on social media. Nevertheless, that is not the limit to that.
Cybercrimes can make use of any digital platform, e.g., email, text messaging, and websites. Here are the major types of online scams to watch out for.
Phishing Scams
According to the FBI, in 2022, phishing was the most common type of cybercrime in reports.
How does phishing work?
The main theme of phishing is “impersonation.” In a phishing attack, cybercriminals will impersonate anybody or any entity with a trusted identity. Banks, employers, literally anyone whose authority you trust enough to surrender your personal details.
More often than not, these criminals “fish” for valuable information like credit card numbers and passwords. Then they use this information to perpetrate crimes—money theft, identity theft, corporate espionage, etc.
Some phishing attacks are sent out en masse to multiple targets at once. While some are more target-specific (spear phishing),.
The typical “fishing” spots are the emails, but phishers are expanding territories daily. You can expect to be phished anywhere on the internet.
Online Shopping Scams
Wherever there is an exchange of money serves as a hunting ground for scammers. With the sporadic boom in online shoppers, it’s logical that scams follow suit.
Online shopping scams are terrible enough that Amazon spent $1.2 billion to curb fake products paraded on the platform. One way to spot them is the payment method.
They prefer to use non-conventionalpayment methods like cryptocurrency, gift cards, and wire transfers. Where little to no tracks are left.
In an online shopping scam, cybercriminals pose as legit stores with fake websites. Some make bolder attempts by displaying fake ads on real sites. These scams use exceptionally low prices for premium goods as bait.
Once payment is made, victims would be lucky to receive even counterfeit products. Usually, they don’t receive any item.
Credit Card Scams
Credit card fraud can happen anytime, anywhere. You can fall victim by text, over the phone, or online. It is so prevalent that in 2022, the FCT received over 440,000 reports of credit card fraud in the US.
How do online credit card scams happen?
Once your personal information is accessed, it is used to apply for a credit card. This can go on for a long time, with the victim none the wiser.
Sometimes, scammers can stage an account takeover. Where they contact the credit card company under the pretense of the cardholder. Then, they change the passwords and lock the owner out.
Romance Scams
These kinds of scams are the worst. Not only do they rob victims of hard-earned money, they leave a trail of broken hearts.
How does it work?
Typically, it works with one party—the scammer—deceiving the other–victim into a “romantic” relationship with the intent to take as much money as possible.
Some scammer alerts for romance fraud are:
- Love Bombing: These cybercriminals make sure to shower excessive amounts of attention and compliments on their prey.
- Too Fast, Too Soon: The goal is to get the victim hooked as soon as possible. So, it’s expected that the “romance” moves on to marriage proposals in no time.
- Unnaturally attractive profile pictures
- Little to no friends
- Avoiding video calls
- Money requests; my mother’s sick, my phone is bad, etc.
Facebook Scams
According to the U.S. Federal Trade Commission, hundreds of millions of dollars are lost to scams on social media platforms, including Facebook.
On Facebook, you are vulnerable to several forms of cyberattacks. Work-from-home scams, Facebook marketplace scams, romantic scams, etc.
Of the several forms of attack, Facebook phishing is the most prevalent. Messages with links are sent to targets, and the links lead to scam websites. With Facebook phishing, you give cybercriminals enough personal information to take over your account(s).
How To Avoid Online Scams
Internet fraud is everywhere, like a virtual pandemic. What makes it more annoying is that one can avoid it just as easily as it spreads.
Prevention is better than cure, it is said. Here are ways you can save yourself from an online scam ( in no particular order)
- Don’t click on unfamiliar links; double-check to be sure.
- Use a multifactor authentication system for added security.
- Don’t share your personal information with strangers on the net.
- Update your privacy settings to control what strangers can see on your social media.
- Install online security software.
Victim already? Here’s What To Do When You’ve Been Scammed.
- Cut the scammer off: in romantic frauds, this is necessary. Leaving room for contact means exposing yourself to more attacks.
- Reach out to your financial institution: call your bank and alert them of your payment. They can then take the necessary steps to curb the effects.
- Change your passwords: prevent further loss by exchanging your password for a stronger and newer one.
- Freeze your credit.
- File a report: go to the relevant authorities and notify them of the scam. This will ensure society is on guard to prevent more incidents.
In Conclusion
Online scams are a growing threat in our digital age, targeting individuals and organizations alike. While organizations have guidance under laws like GDPR and NDPR, individuals have none. Protecting yourself requires vigilance and proactive measures. By staying informed about the types of scams, and practicing good cybersecurity habits, you can reduce the risk of falling victim. Remember, prevention is better than cure.
