Online scams are available in many forms. Some are obvious, such as those who promise a vacation that is too good to believe or demand your bank details urgently, such as the Monzo scam. Some are easier to spot, such as those that promise a vacation deal too good to be true or ask for your bank details urgently.
Pre-approved notice scams
The advance fee loan scam involves a type of mail fraud where consumers receive a letter, or an email, that appears to come from a lender, and claims they have been pre-approved for large credit cards, mortgages, auto loans, or personal loans. The letter often comes with a check that the named recipient can cash. Cashing the checks puts the scammer in control, and the consumer is unable to recover their money.
The first red-flag to be on the lookout for is if a lender charges upfront costs. Legitimate lending institutions only charge fees when the loan is approved, processed and the fees are deducted. If the lender asks for payment in cash, gift cards or money transfers, that’s a big red flag. These methods are untraceable, and can be used by thieves to steal your personal data.
When researching a possible lender, you should look at their website and social media pages. Doing a quick online search can surface news stories about regulatory actions against the company or even links to community websites such as Reddit, where people have shared their experiences. DFPI recommends using this information to determine whether the company is legitimate and if there are any outstanding complaints. It’s also wise to avoid revealing any personal information on the internet, as unscrupulous thieves may try to steal this information by exploiting weak security features. It is important to update passwords regularly and use strong ones. Update your computer and mobile device software to the latest version. This will protect you from malicious apps and hackers.
Fraud involving cryptocurrency
Cryptocurrency frauds are similar to other financial crimes. However, they target digital assets and not cash. They can use a variety tactics, such as impersonation or fraudulent business or investment opportunities. They can also use social engineering techniques to steal digital wallets or private keys.
Scammers may also pose as social media sites or dating websites in order to trick people into divulging their cryptocurrency passwords and account authentication credentials. Blackmail or extortion are other criminal schemes that make victims feel threatened. Scammers will claim that they have information about illicit activities on the victim’s computer and threaten to expose them if they don’t provide the password or private keys.
In one type, known as a “pumping” scheme, fraudsters inflated the price of low volume and low value cryptos by spreading false rumors or information in online forums and communities. Once the price reaches a high, they sell their holdings, causing the price to crash and leaving other investors with significant losses.
Another common crypto scam involves a fake website or platform that appears to be legitimate but is in fact compromised with malware. The software infects victim’s systems, which then move all stored cryptocurrency into a scammer controlled wallet. The scammer can also steal coins by impersonating an online liquidity mining service, and convincing the user to deposit their cryptocurrency into a wallet that they control.
Other types of crypto scams include fake livestream events, giveaways, phishing, extortion emails, bogus company alerts, and even a tried-and-true romance or friendship scam. The best way to protect yourself against these threats is to secure your cryptocurrency outside of a wallet, a practice known as “cold storage.” This will help protect your cryptocurrency from unauthorized access and cyber hacks.
Disaster relief scams
When a natural disaster strikes, people come from all over to help their family and friends. But unfortunately, scammers are never far behind, seeking to take advantage of the tragedy. They can steal identities and drain bank accounts. They also wreck credit reports. Fortunately, by exercising caution and good judgment, you can protect yourself from these scams.
It is vital to be aware of the latest information when a natural catastrophe strikes. The government has created an online system that dispels misinformation and warns people about scams. Talking to your friends and neighbors can also be a great way to learn how to stay safe.
Credit card fraud is the most common type disaster relief scam. Scammers will ask people to text or call them and give their credit card details to donate to “disaster aid” funds. They will include heartbreaking tales to gain sympathy and encourage people to donate. Typically, scammers will steal the money and your personal details.
Remember that FEMA or the Small Business Administration will never ask for payment to process disaster assistance applications. Beware of contractors that offer to rebuild or repair homes after a disaster. They may demand upfront payment and then disappear. You should only share your PII to trusted sources and agencies. You should also only donate cash to charities, and never via wire or electronic check. Make sure to write the name of your organization, not just initials, on the check.
Social media scams
A social media scam typically involves a fake offer to purchase products or services. These scams may be advertised in marketplaces, on social media pages or in community buy-and sell groups. These scams often involve inflated pricing or pressure tactics, such as offering items in limited supply and telling people to act quickly. They also may include misleading links to websites that download malware or steal personal information. These scams fall under the category of phishing, a type fraud.
Scammers use social media to target specific demographics and can impersonate friends or family members to steal money or personal information. They can also use interactive features like quizzes and games to elicit information such as birthdates, pet names, mother’s maiden names, and other details that can be used for security questions or passwords. They can also create fake competitions and charity pleas in order to trick people.
Some of the most common social media scams are bogus job offers or investment opportunities. These scams often require money for equipment, training, or supplies upfront in exchange for a position. They can be difficult to spot, especially when you’re asked to transfer the money to a non-verified account or payment app.
Scammers often use social media to impersonate celebrities and other well-known figures in order to gain trust from their targets. If you suspect a celebrity that you know is involved in a fraud, report it to the platform and contact their manager or agent for more information. Also, be wary of any profiles that seem suspicious or have a lot of misspellings. These are signs that the person behind them is not a native English speaker.
Copycat accounts
Copycat accounts are fake profiles online that impersonate an established brand, celebrity or individual. These fraudsters usually create these fake accounts in order to steal user data or promote malicious links. They can also use them to target a person’s friends or family members. These scams are dangerous because they can lead directly to identity theft or other crimes. If you suspect that personal or business data has been compromised it is important to notify your local police and the Federal Trade Commission.
Cybercriminals can commit a variety of online scams, including phishing, investment-related schemes, and social media fraud. These scams are typically based on a false claim and involve asking for sensitive information such as passwords, credit card numbers, and Social Security numbers. This type is on the rise, and you should be vigilant when it comes to your security.
Investing in fraudulent investments can be expensive, so it’s important to protect your money. The most common way to avoid these scams is to avoid revealing your personal information to people you don’t know. Never give anyone your money or personal information unless you are sure of their trustworthiness. This will prevent criminals accessing your account to steal your personal information.
You can also protect yourself by using strong passwords on all your accounts. These passwords should be unique and difficult to guess. In addition, you should change your passwords regularly to keep your accounts safe from cyber attacks.
It is also important to be educated about the different types. It is also important to know how to recognize scams and what to do if you fall victim to one.
