Internet Scams to Avoid and Precautions to Take
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From a Greek merchant in the 6th century BCE who sunk his ships to claim insurance money to modern-day hackers, mankind has always had a penchant for fraud and making a quick buck. And while fraudsters' methods may have only gotten more sophisticated in the world wide web era, their goal hasn't changed: to rob you of your money or illegally use your personal information.
Here are a few internet scams to be mindful of and steps you can take to safeguard your interests.
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Internet scams to avoid
There are many online scams out there that can try to take your money and leave your account empty or target your personal details through a variety of methods. Here are some of the most common ones:
Fake job offers
Many scams involve fake job offers that promise huge salaries and benefits, but scammers want sensitive information and money in exchange. The Federal Trade Commission warns against job scams that request money upfront, pay a fee for training materials, or require you to buy merchandise before you're even hired. In general, you shouldn't have to pay to get a job, and it's a scam if you're asked to pay anything upfront for a job. To protect yourself from falling victim to a job scam, check the company's website and look for customer reviews of the company or the position.
Work-at-home scams
These scams often promise big money but require you to pay money to get started and/or provide your personal information to companies interested in hiring you. These scams are usually easy to recognize because they promise that you don't have to work for anyone in particular or get lots of money for doing nothing at all.
Get rich quick schemes
These scams promise large amounts of money for little effort. They usually involve sending money abroad or paying fees upfront. There are almost always strings attached: You'll have to pay a fee or make monthly payments.
Spoofing
In this, a con artist will disguise an email address or a text message to convince their victim that they're interacting with a trusted source. These fraudsters typically just change one letter or a number to make it look like a valid source at first glance.
Pyramid schemes
Pyramid schemes are scams in which people make money by recruiting others, by recruiting more people, and so on. Each participant must contribute money, which is distributed to early participants. The scheme collapses when there are no recruits. Pyramid schemes are illegal in most countries.
Phishing scams
Fraudsters are increasingly using a variety of tactics to gain access to people's bank accounts and drain their money. The most successful of these scams are so-called "phishing" emails that claim to be from a bank or other financial institution to trick people into handing over their bank details or money.
These scams are the prime cause of identity theft. They usually involve fake emails that appear to be from reputable companies but are actually from fraudsters. The emails will ask you to click on a link or open an attachment, which infects your computer with malware. The scammer can access your personal and financial information if your computer is infected. It's important to be wary of these emails and only enter your banking details into legitimate websites and never click on any links in suspicious emails.
Romance scams
Remember The Tinder Swindler? These are scams in which the scammer pretends to be someone they are not to trick you into giving them money. Common examples include online romances and scammers posing as soldiers overseas. The scammer will pursue a romantic relationship with the victim to gain their trust and then ask for money. Some scammers may even send gifts to appear more sincere and legitimate.
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Telltale signs of a scam
Scammers are exceptionally good at hiding their identities and often their true intention. However, there are a few red flags and warning signs you should be on the lookout for.
- Scammers will often ask for your banking details/personal information (including your PIN, passwords, and security questions) via email or an online payment portal.
- They request payment via prepaid or gift cards, which can be tough to track.
- Don't click on any links or attachments in an email from a sender you don't know.
- Never send money to someone you have never met in person or who has only contacted you online.
- Do not respond to unsolicited emails or phone calls, even if they appear to be from a legitimate source.
- A "too good to be true" deal, such as discounts on products you haven't ordered, is most decidedly from someone looking to con you.
How to protect yourself from online scams
Scammers are becoming increasingly sophisticated in their attempts to trick you into handing over your details and/or money. Below are some tips to avoid becoming a victim of a scam:
- Don't give personal information: Only ever give personal details to companies you know and trust. If you receive an unsolicited phone call or email asking you to make an urgent online payment or provide your banking details, don't respond!
- Use two-factor authentication: If someone tries to log in to one of your online accounts using a computer or phone that you haven't used before, you'll be asked for an extra verification code sent to your phone by text or email.
- Use a firewall: Firewalls on your computers, laptop, and mobile devices help protect your personal data. This should be updated regularly to ensure it's working properly. It's also important to keep your operating system up to date by installing the latest updates as soon as they become available.
- Craft a complex password: A strong password should be at least eight characters long and includes a mix of uppercase and lowercase letters, numbers, and symbols. This will make it much harder for fraudsters to guess your password and gain access to your accounts.
- Different passwords for different accounts: I know: One password for all accounts makes it easy for you to remember your password. But, at the same time, fraudsters only need access to one of your accounts to unlock the rest! Never use the same password for your email account as you do for your online bank account or social media accounts.
What to do if you've been scammed
If you suspect you've been scammed, contact law enforcement or a government agency like the Federal Trade Commission or the FBI's Internet Crime Complaint Center.
That said, how you can react once you've been scammed comes down to the type of scam and how you were swindled.
If you made a payment
Whether you paid through a credit card or debit card or made a wire transfer, you can contact the relevant company and let them know what's happened so they can stop any unauthorized transactions as quickly as possible. If you're not sure whether your bank account has been compromised, the best thing to do is get in touch with your bank and let them confirm whether it's been affected or not. In any case, you should most likely be able to recoup your money. However, that wouldn't be the case if you paid with cryptocurrency because transactions on the blockchain aren't typically reversible.
If you gave personal information
You should also contact one of the big-three credit bureaus. You can also file a fraud alert with each credit bureau to inform them that there's been suspicious activity on your accounts and that you want them to keep a close eye on them. This will give you a chance to see if there are any suspicious activities listed on your report so you can take steps to prevent them from happening again.
You should also go to IdentityTheft.gov and see what steps you can take to protect yourself. If you give the scammer any passwords, you should immediately create a new password.
If the scammer had access to your computer or phone
If this is the case, then it's time to do a clean sweep of your computer. Update the computer’s security software and turn on the auto-update feature. Next, run an antivirus software scan of your computer and delete anything it flags. It's also a good idea to run period scans so you can remove malicious files or software before they create any more headaches for you.
If the scammer took control of your phone, you should contact the service provider to regain control of your phone number.
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The bottom line
So much of what we do now is achieved through the internet. Online shopping, which requires that we input a credit card number, is a prime example. There are many different types of scams today, and they can be very difficult to spot if you're not familiar with how they're carried out. That's why it's important to be vigilant and take the necessary steps to protect yourself from becoming a victim.
Scammers are employing increasingly sophisticated tactics to trick people out of their money. Cybercrime will remain potentially forever. But as long as you take a few precautions, you should be able to avoid becoming the victim of a scam and keep your money and other family members safe at all times. As a general rule, however, if it's too good to be true, it probably is.
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Writer
Jasir Jawaid is Joy Wallet's Assistant Editor. He has more than 13 years of experience as a journalist covering Wall Street, equities, financial policy and regulation, and cryptocurrency and blockchain.
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