In the current digital age, the use of technology continues to infiltrate most aspects of everyday life, from online shopping to dating, making people more vulnerable to internet fraud. Additionally, a large portion of the American work force has recently transitioned to working from home, further increasing the likelihood of falling victim to an internet scam. Even though senior citizens continue to be the most vulnerable group according to a 2020 FBI report, younger generations are also being impacted at higher rates than ever before. According to The Federal Trade Commission’s 2021 data, more than $5.8 billion was lost to fraud, a 70% increase compared to 2020. As technology continuously advances, online fraudsters are constantly developing new and more sophisticated cons. According to some experts, we may be on the verge of a “scampocolapyse”, as online cons are growing at an unprecedented rate. In this environment, it is imperative for internet users to be aware of the high potential of fraud and how to protect themselves against scams. The five internet scams described below have been listed as some of the common scams in 2022.
1. Smishing
Smishing is a type of fraud that happens through deceptive text messages or SMS, hence the name “SMiShing”. Smishing attacks are becoming increasingly common as it is shown that people are more likely to trust a text message than an email. In a fraudulent text message, scammers will impersonate banks, charities, or other organizations to gather personal or bank account information. They will try to get victims to click on links to confirm “suspicious bank or credit card charges.” Another tactic scammers will attempt is trying to get the victim to donate to “charitable causes” such as COVID-19 or hurricane relief.
How to Protect Yourself:
- Don’t click on any links. Even if you believe the link is coming from a trusted party, login to your account through the bank or organizations website instead of clicking on the link. You could also call them directly to confirm. Do not call the number provided in the text (if one is provided), call the number that is listed on the source’s website.
- Update your phone software. To decrease the likelihood of having a cyberattack, install software updates on your phone as soon they are released. Additionally, install an antivirus app that can scan your phone for these scams. Cyber news has a list of the best antivirus apps for iPhones here.
- Don’t reply. Even if the message that was sent to you indicates that you can “Text STOP” to avoid messages, don’t reply. Replying will let the scammer know the number is active.
- Always be on the lookout for any strange messages from a familiar phone number. Spammers can fake a caller ID to make it look as if it were a local number or someone you know. This is called spoofing, which makes the number appear as one you may know but is actually fake.
2. The Grandparent Scam
Grandparent scams are on the rise as scammers continue to target the elderly population. These scammers exploit the love grandparents have for their grandchildren by posing as their grandchild who is in a dire situation and needs cash immediately. Usually, they claim that they’re in trouble and need bail, or need to leave a foreign destination.
How to Protect Yourself:
- Resist the urge to act immediately. It is important to always be suspicious if you are contacted with an urgent request that involves money or something else of value.
- Verify identity. Make sure to call and ask specific and detailed questions that wouldn’t be common knowledge. Try to also confirm the story with another family member.
- Make your social media pages private. If you have an Instagram or Facebook, make sure your page is private so only close family members and friends can see your posts and activity. This will limit the amount of personal knowledge scammers have about you.
3. Fake Checks and Overpayments
There has been a recent increase in fake checks and overpayment scams as more people are selling items online. A scammer will try and buy an item from you online and “accidentally” send you a check more than the listed price. They will then ask you to refund the balance. Fake checks can look identical to real checks and even after depositing the check, it may take weeks for the check was counterfeit.
How to Protect Yourself:
- Do not accept any checks when selling items online. Furthermore, do not try to deposit any checks that are more than the listed price.
- Do not refund. If asked to refund the overpayment, you can count on it being a scam. Do not send any gift cards or wires, as you will more than likely never get that money back.
4. Local Tax Imposters
Tax imposter scams happen when scammers contact you by phone or email pretending to work for the IRS or a local government. Usually, the fraudster will send a message about taxes being owed and request a money transfer or payment by check. These messages are fear tactics and may threaten you by saying that you can be arrested if payment is no made by the due date.
How to Protect Yourself:
- Be alert if you receive a message about unpaid taxes. It is important to note that you will always receive a letter in the mail from the IRS before they give you a call about an unpaid tax liability. Always be aware of any messages containing hyperlinks or requesting money or alternatively, something of value.
- If you do receive this call and are suspicious (as you should be), ask the caller to provide their name, badge number and callback number. Then you should proceed to call TIGTA at 1-800-366-4484 to figure out if the caller is truly an IRS employee with a valid reason to contact you. If they notify you that it is a legitimate call, you can call them back. Otherwise, report the person to TIGTA.
- Don’t be alarmed by threats of arrest. The IRS won’t threaten to have law enforcement arrest you if the bill is not paid.
5. Employment scams
There are many online employment platforms (i.e LinkedIn, Glassdoor, Zip Recruiter etc.). Companies use these to be cost effective and convenient when hiring. Unfortunately, scammers can use these websites to gain access to the personal information of their targets. Here are some red flags to be aware of:
- Do not engage if “payment is required.” You should not have to pay to apply for a job position. You should also never be asked for any banking information during this process. If a request for money is made, be extremely cautious as this is most likely not the job you are wanting to apply for.
- Be alert if asked for sensitive information. If the application asks for personal information such as Social Security number, credit card number or bank account number, it is a telltale sign that this is a scam. Some states allow job applications to ask for a Social Security number, but they should NEVER ask for any bank or credit card information. You should always make sure that the website is authentic and doesn’t’ show any signs of a scam.
- Do not download attachments or files from employment platforms. These can corrupt your computer and give the fraudster access to your computer.
- Be aware of more subtle red flags. These include poorly written text (typos in questions and/or the communication does not make sense), pressure to accept a job ASAP, and any language that includes “guaranteed” or “payment method.”
How to Protect Yourself:
- Do not respond to suspicious messages. If you receive a message about a job, that you are unsure you applied to leave it alone.
- Research. Make sure to thoroughly research the company you applied for to make sure it is a legitimate business. Usually companies will have a “careers” tab on their website, which allows you to verify that they are hiring for the job you applied for on a third-party job page.
- Trust your instincts. If you feel as if anything is suspicious about a position you are applying to, then the best thing is to stop and look for something else.
In conclusion, cybersecurity attacks have been prevalent for quite some time, but they pose greater risks now than ever before. Protecting yourself against scammers should be at the top of everyone’s mind going forward. Internet fraud will only increase in quantity as fraudsters become more cunning and skilled at turning these scams into profits. Round Robin states that “Over 75% of targeted cyberattacks start with an email.” It is already becoming increasingly difficult to differentiate a regular email from a scam, which raises room for concern among individuals with access to online services. Norton states that “53% of adults admit they don’t know how to protect themselves from cybercrime”. You can adopt simple measures to mitigate the risk of falling victim to one (or more) of these scams by always staying up to date with technology software updates. Installing a firewall to add an additional layer of security is also recommended. Last but not least, never proceed with instructions for a transaction through online communication. Always question whether or not the communication is legitimate as these messages tend to, more often than not, be fraudulent.
If you or someone you know has been a target or victim of financial fraud, please report it to the resources below.
- Federal Trade Commission
- U.S. Postal Inspection Service
- State Attorney General
- National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311)
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