Most of us spend several hours casually surfing the Internet, oblivious that malicious scammers and cyber criminals share these online spaces with us. From phishing emails to social media scams and everything in between, you can never have another typical day on the Internet anymore!
However, you can protect yourself against most online frauds with vigilance and practical cyber training. Here is all you need to know about six of the most common online frauds today.
But what is a scam or fraud?
Simply put, a scam is a dishonest scheme promising people benefits that are too good to be true. A scam or fraud tends to manipulate people into giving away their sensitive information, banking details, credit card information, money, etc.
An example of a common scam is the IRS phone call, where a scammer calls you, posing as a tax office representative. The exchange generally follows a basic theme where the “employee” makes up random debts and charges to be paid by the innocent customer. Like many other online scams and frauds, an IRS call also feeds off of fear and a lack of essential cybersecurity awareness.
The rising rate of online frauds: A summary
With the advancing technology, it is safe to say that cybercriminals have also stepped up their game! Various studies suggest that online scams have been rising steadily, especially during the pandemic, when criminals were exploiting people due to increased online presence.
The Federal Trade commissions publish a Consumer Sentinel Network data book each year, and an analysis in it shows the number of frauds and identity thefts reported each year. During the first year, only 325,519 reports were received. However, we have seen a staggering 47% increase since then (i.e. 59,600,000 reports).
Around 1 out of 8 or 13% of people fell victim to at least some form of crime related to coronavirus. And while such scams have been around for quite some time, recent technological advancements in generative AI have boosted cybercrimes and online frauds.
Top 6 Common Online Frauds:
All the mundane things you do on the internet can lead you into a scammer’s trap if you do not proceed cautiously. Whether you are browsing through an online store or looking for instructions on how to get unbanned from Snapchat, make sure that you are always vigilant. General cybersecurity awareness is half the battle!
Here are the 6 most common scams you need to watch out for
1. Online shopping scams
These scams are standard, especially in the age of digital stores. Scammers set up online shopping stores that look pretty legit, but they are all stolen, designed, and copied logos.
Sometimes, scammers even make realistic copies of your favorite stores to get you to buy stuff and share your credentials and credit card information. However, in most cases, you don’t even get the purchased item
How to avoid an online shopping scam:
- If it is a new store, check their ratings and reviews.
- Ensure that the website URL has the SSL certificate (i.e. https://)
- Generic email addresses and unclear contact information can also indicate scams.
- The site could be a scam if the prices and deals are too reasonable to be true.
- And lastly, if they have unconventional payment methods or ask you to wire money directly, it is better to abandon the site.
2. Phishing emails
According to Verizon’s Data breach report (2022), phishing attacks and emails accounted for 36% of all US data breaches. That is huge, considering the simplicity of this attack! In a Phishing email scam, a cybercriminal or hacker sends you an email that usually holds a malicious link or software.
The email could be advertisements or from legitimate sources, like your bank. Once you click on the link in the email, which installs malicious software to your system or directs you to a new page where your credentials could get stolen.
How to avoid a phishing scam:
- Make sure you check the email address for spelling mistakes or general altercations.
- Ensure the URL in the email matches the URL of the official site.
- Emails asking you to provide personal information should be thoroughly verified first.
- DO NOT click on any random links or attachments in the email.
- You can also use some security software to filter out such malicious emails.
3. Social media scams
Studies suggest that, on average, users spend nearly 900 hrs on social media every year, so it only makes sense for scammers to target the masses there! These scams involve suspicious forms, fake profiles, fraudulent emails, and more.
Usually, random contests and quizzes telling you what type of cupcake you are do not seem threatening. However, a scammer can infect links and steal your information by directing you to an unauthentic website.
How to avoid a social media scam:
- Avoid clicking on random links in posts or advertisements.
- Do not enter personal information without verifying the source, as it can be sold to third parties.
- Verify a friend request before accepting it.
- Avoid random pop-ups with shocking or eye-catching information, as these links are designed to attract people to insecure websites.
- Use the security and privacy settings provided by various social media platforms.
4. Job offer fraud
Job scams just hit differently! Imagine one is struggling to get a job, and after countless interviews and evaluations, suddenly, a good (deceivingly good) offer pops out of nowhere like an oasis in the desert.
You would have come across job postings like “ Get paid $1000 per day from your home. Click here!”, yeah this is exactly what a job scam is.
Even on platforms like LinkedIn, scammers pose as recruiters and contact graduates or struggling employees to offer them fake job proposals. The scammers get data out of it that can be sold to third-party sites for a hefty sum.
How to avoid job scams
-
- To a background check on the company.
- It is probably a fraud if no interview is required or the entire process seems too fast.
- If the offer seems unrealistic, it could be a scam.
- Read the job description thoroughly.
- Avoid sharing personal information.
- Contact the company directly to verify if a company representative contacted you.
5. Online dating scams
Online dating scams, or romance scams, are rising every day! These scammers are called catfishers because they steal the identity, information, and pictures of a natural person and contact victims, imitating them. Stats suggest that losses due to these dating scams reached $304 million in 2020.
Such fraudsters would ask you to send them money to help them through personal struggles. Sometimes a scammer can also ask you to redirect an item or parcel they sent you, which is even more dangerous.
How to avoid dating scams:
- If the person suggests you move to private channels rather quickly, he could be a fraud.
- Never send money to someone you meet on a dating platform.
- Verify the person’s profile and identity.
- Look for inconsistencies in their story if they seem suspicious.
- Never share personal information.
- If you meet the person, ensure you do so in a public setting.
- Ask for a video call to ensure that person is not a catfisher.
6. Lottery scams
In 2021, reports suggest that over 629 lottery frauds were reported between April and October. In this type of fraud, a person usually receives an email informing them that they have won some foreign lottery and need to pay a fee to process the courier charges, bank fees, government taxes, etc.
The victim is also asked for other personal information that gets stolen along with the money you sent them.
How to avoid lottery scams:
- Verify the organization’s contact information.
- Check if the organization has any history of lottery scams.
- Authentic lotteries do not ask winners to pay any fee.
- Do not share any personal information.
- If the email is from a person, not an organization, it is a scam.
General tips and tricks to avoid online frauds and scams
Here are some tips to help you navigate the digital web without getting caught up in random online scams and frauds:
- Spend some time learning about other kinds of security threats and scams and how to avoid them best.
- Verify the sources, websites, and emails before sharing personal information or transacting online.
- Use strong passwords and two-factor authentication to strengthen your account security.
- Avoid clicking on every random link and attachment.
- Keep your system and browser updated.
- Use a reliable VPN to secure your network connection when using public WiFi.
- Avoid sharing personal information on personal chats or forums.
- Ensure the website is secure by verifying the URL has “https://” and a padlock icon.
- Do not fall for suspicious offers, requests, and emails.
- Report any fraud, scam, or suspicious activity to relevant authorities.
Browse more securely: Steer clear of online frauds
And these are the top 6 online frauds you may encounter on the Internet today. However, this list is unfortunately not the end of it.
Charity funds, messaging, and even coronavirus scams are prevalent today. But with sufficient cyber awareness and healthy browsing habits, you can ensure your data is protected and scam-proof.
