Online scams can lead to identity theft, credit card fraud and other financial losses. These scams are often based on emails that claim to be from a legitimate company or offer too-good-to–be-true offers. You can protect yourself by learning how to get your money back from scam, reading privacy policies and not oversharing on social networks.
Be wary of anyone who asks you for personal information or financial data via messaging apps. Avoid using public wifi for making purchases or logging into your financial accounts.
Catfish
A catfish is a person who uses an online profile to manipulate others, typically for financial gain. They can also pose as another person to experiment with sexual preferences or other things, or be predatory.
Many catfishing victims are unaware that they are being cheated. They may share intimate information with their victim, or even have them record conversations to make it harder to determine if the person is genuine. They can also hide the location of their scammer, which could be a warning sign. Some scammers can fool their victims for many years. In some cases, they have even used physical violence.
You can spot a catfish if you look for certain signs. A person who doesn’t post a photo or video of themselves on the internet is a red-flag, as is someone refusing to show their face during video chat. They may also avoid answering questions about themselves, and their answers can be inconsistent. They might say they live outside Boston but not give a precise town or that they attended school in a certain city but not name the college.
Keep your personal information private and use tools such as Have I Been Pwned (which checks if you have been hacked) to find out if the email address that you are using has been compromised. It is also important to improve your digital literacy and ask for help from family and friends if you are feeling lonely or vulnerable.
Fraudulent use of credit cards
Credit card fraud can have serious consequences. Criminals use stolen information from credit cards to purchase goods and services, or withdraw cash. They can also steal login credentials to existing credit cards and use the stolen information in order to impersonate a victim. In the US in 2019 there were over 450,000 credit card fraud complaints.
The criminals behind this type of crime usually access the card details through phishing or smishing, which involves sending fake emails or text messages that appear to come from your bank or other trusted institutions. These messages may ask you to click on a link that will expose your data or download malware onto your device. They can also steal your information from websites that offer online marketplaces for popular products at low prices, or from companies you’ve done business with in the past.
Another way criminals can obtain credit card information is by installing devices called skimmers at vulnerable points of sale, such as gas pumps. These devices look similar to normal credit card readers. They can capture the magnetic strips on the backs of cards. Fraudsters can then clone the stolen card and use it to make fraudulent purchases. Contact the card issuer if you notice any suspicious charges on your statement. Be sure to check all of your card accounts and other financial accounts as well, as the fraudster might have gained access to other information.
Advance-fee scams
Advance-fee scams are a type of fraud in which the victim is asked to pay money upfront for goods, services, or loans that don’t materialize. These scams are often used by loan brokers in order to take advantage of consumers who have bad credit. They promise a loan or access to credit, but ask for a fee upfront for processing, insurance, or other costs. The scammers then disappear without giving the money back.
Often, the scammers will request payments via wire transfer, prepaid cards, or other untraceable methods. They also typically use fake documents to make their requests seem legitimate. These types of scams can occur face to face or over the phone and email, and they target vulnerable people.
In one common scam, a fraudster will contact a potential investor and offer to sell securities at a price that is higher than the actual value. The fraudster will then charge a fee upfront to process the investment. He will then disappear without delivering securities. This type is called an advance-fee scheme or 419 scam.
Another variation on this scam involves a person calling to say they’ve won the lottery or other prize but need to pay fees to receive the winnings. This type of scam is often referred to as the Nigerian prince or royalty scam.
Jobs and employment scams
Job scams are perpetrated by criminals who impersonate employers or recruiters in order to trick victims into providing personal information or money. To make their offer appear more genuine, they may use fake websites or documents. Victims of these scams can suffer a significant financial loss, and their identities and financial assets can be at risk.
Fake checks are a common scam in the employment industry. Fraudsters send victims checks, usually for a higher amount than the job pays. The fraudster then asks the victim to cash it and send the money elsewhere. This is a wire-transfer scam, and it accounts for about one third of all employment and job scams reported to FBI in 2022.
A red flag is if a potential employer insists that you only communicate through messaging apps such as iMessage or WhatsApp. This is a sign that they are trying to conceal their identity and location. Also, if the company claims to have global offices or remote employees, be wary.
If a job offer sounds too good to be true, it probably is. If you are thinking about applying for a position that offers a large salary, research the company online. If you are unable to find any information regarding the company, or their website is unprofessional it’s probably a scam. You can also ask someone you trust to give a second thought about the job listing.
Identity theft
Identity theft is when criminals steal personal information from a victim, such a credit card, bank account or Social Security number to commit fraud or another crime. Identity thieves can steal the victim’s information through a variety of electronic and low-tech methods, including phishing attacks, spyware or hacking.
An identity thief may use the victim’s information to open credit cards, take out auto loans or obtain medical services in their name. The thief can also steal the victim’s account or alter existing accounts. According to a Javelin Strategy & Research study, identity theft complaints spike during economic downturns.
Anyone can become the victim of identity theft. Children and elderly adults, who do not have as much control over their bills and identifying details, are more vulnerable. Seniors often give their identifying information to caregivers and doctors, who then share it with criminals.
To help prevent identity theft, avoid sharing sensitive information on social media and never respond to unsolicited emails that ask for identifying information. When possible, choose not to use public Wi-Fi networks to log in to accounts, as criminals can eavesdrop on the connection. Report lost or stolen cards immediately. Last but not least, pay attention to billing cycles and amounts of bills. This will help you ensure that all charges on your bill are legitimate. This will make it easier to identify the perpetrator if you see any unusual activity on your bills.
