Whether it’s social media or artificial intelligence, criminals can find lots of ways of using the internet to steal your personal or financial information. Scammers are always coming up with new techniques to get people to send money or hand over their credit card information.
The best way to avoid falling for scammers is to learn about the scams themselves, the attackers’ goals, and their tricks. So what scams do you need to look out for? Which methods are expected to increase in 2023?
1. Phishing Scams
According to the Anti-Phishing Working Group, there were over 10 million phishing attacks in just the first quarter of 2022, and between July and October 2022, that number increased by 1.3x. Phishing attempts are expected to grow even more in 2023.
Phishing scams can be as simple as sending spam emails or as subtle as impersonating a company’s website. They can happen to anyone anytime, as scammers aim to gather lots of personal or work information, such as usernames, passwords, social security numbers, and other sensitive data.
Scammers use cleverly written messages that often appear authentic to lure people into giving them private data or entering personal information on a phony website they have set up.
For example, a phishing scammer can send you an email pretending to be a credit card company and redirect you to a fake website that might resemble the actual one. After you provide your credit card details, they will use that information to withdraw funds from your bank account.
Along with stealing from you, scammers can also get a loan, a credit card, a driver’s license, and even file a fraudulent tax return in your name.
How to Avoid Phishing Scams
You should not respond to an unsolicited request for information, whether it purports to be from your employer or a financial institution. If you receive an email claiming you’ve won a gift card or other prizes, and it asks for your personal information in return, it’s most likely a scam.
You can use email services like ProtonMail, which has effective spam filtering, to protect yourself from phishing scams.
2. Cryptocurrency Scams
The FTC Consumer Protection Data Spotlight stated in 2021 that customers had lost about $1 billion in crypto frauds, nearly 60 times the amount recorded in 2018. Since cryptocurrency trading is anonymous and irreversible—i.e. you cannot get your money back after you’ve sent a crypto transaction—they are becoming increasingly popular among scammers.
Currently, investment and romantic scams are the two main strategies scammers use in the cryptocurrency industry. Scammers use a variety of clever tricks to persuade people to invest their money in their fake cryptocurrency platforms, from collecting an upfront fee to faking celebrity endorsements.
Investment fraud starts with an unexpected text, email, or phone call that convinces you to download a fake application or invest in a fraudulent crypto project. Scammers mostly attract investors with promises of a huge return, only to steal their money and disappear, leaving holders with worthless coins.
On the other hand, a romance scam involves scammers building long-distance relationships with their victims—but it all happens online. The scammer eventually suggests starting a crypto investment and offers help with exchanges.
The thief will initially invite you to deposit a small amount of money on a phony website they have set up. There’s a chance you’ll get some returns, which will encourage you to make big deposits. When you do that, the facade of online dating will end, and the scammer will disappear with your money.
How to Crypto Scams
Be sure the websites you invest on are reliable, or at the very least, do your homework on the service before depositing money. White papers and basic background information on the core team members are always included in reputable cryptocurrency exchanges. If you cannot find any information, the website might be fraudulent.
Avoid making investments based only on the advice of someone you have just met online, especially if it seems too good to be true. Try to keep your investments and online dating separate, and never disclose your private keys or passwords to anyone.
3. Employment Scams
Since 2022, the tech sector has been particularly badly hit by layoffs. Inflation has also forced people to search for better job opportunities, which has given scammers a golden opportunity.
According to a ZeroFox Intelligence report, job scams surged by 30 percent between the third and fourth quarters of 2022. It’s easy to create fake job descriptions that might pass for real ones; thanks to AI technologies like Chat GPT and Jasper, employment scams will increase even more in 2023.
Scams can be carried out via email job offers or even through reputable sites like LinkedIn. In such cases, an eager employer has made you an offer despite you never having applied for a job. The work is typically well-paid, and the duties seem to be simple.
Fraudsters can also create fake company websites or copy existing ones, as well as fake paperwork, bank account information, and employment forms. In order to obtain sensitive information, they publish their fake job openings on many trustworthy, third-party job-seeking sites.
All job scams aim to obtain confidential details, including your driver’s license, home address, phone number, and social security number. Cybercriminals may use this information to steal your identity or money from your accounts.
How to Avoid Job Scams
It is best not to apply for a job if the job description seems vague, or you cannot find details about the company online. Websites like Companies House and Crunchbase are good places to look for information on the company and its employees.
And if a supposed hiring manager requests upfront payment, the offer is a scam. Never give your credit card number or wire money to anyone you don’t entirely trust.
What if I Fall Victim to a Scam?
Contact the Federal Trade Commission (FTC) or submit an online complaint if you end up sending money or revealing personal information to a fraudster. You should contact your bank immediately to block your cards if you have also shared your account details.
Several online payment platforms might be able to assist scam victims in getting their money back, but it’s not always possible. Every company has a distinct refund policy; for example, PayPal only issues refunds to customers who choose to send money with Purchase Protection enabled.
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