As technology continues to advance, so do the tactics of scammers who are looking to take advantage of people’s personal and financial information. In 2023, it is more important than ever to be vigilant and aware of the various online finance scams that are circulating on the internet. Here are some tips to help you avoid falling victim to these scams:
- Be cautious of unsolicited emails or messages. Scammers often send out phishing emails or messages that appear to be from legitimate financial institutions or companies. These emails or messages will often ask for personal or financial information, such as login credentials or account numbers. It’s important to remember that legitimate financial institutions will never ask for this type of information via email or text message.
- Watch out for too-good-to-be-true offers. Scammers will often make promises of easy money, such as promising high returns on investments with little or no risk. If something seems too good to be true, it probably is. Be wary of any offer that seems too good to be true and do your research before investing your money.
- Be aware of social engineering tactics. Scammers will often use social engineering tactics, such as posing as a legitimate authority figure or creating a sense of urgency, to trick people into giving away personal or financial information. Be skeptical of anyone who is trying to rush you into making a decision or providing personal or financial information.
- Do not click on links or download attachments from unknown senders. Scammers will often use links or attachments to spread malware or steal personal information. Be sure to only click on links or download attachments from sources you trust.
- Use security software and keep it up to date. Make sure you have a good anti-virus and anti-malware software installed on your computer and keep it up to date. This will help protect your computer from malware and other threats.
- Be careful when using public Wi-Fi. Public Wi-Fi networks are often not as secure as private networks, and scammers can use these networks to steal personal and financial information. Be sure to use a virtual private network (VPN) when accessing sensitive information on public Wi-Fi networks.
- Keep your personal and financial information private. Be careful about sharing personal and financial information online, especially on social media. Scammers can use this information to steal your identity or access your accounts.
- Use strong and unique passwords. A strong and unique password can help protect your accounts from being hacked. Avoid using easily guessable information, such as your name or birthdate, in your passwords.
- Be aware of the latest scams. Stay informed about the latest scams by checking the websites of financial institutions, the Federal Trade Commission, and other reputable sources.
- Report any suspicious activity. If you suspect that you have been a victim of a scam or have received a suspicious email or message, contact the financial institution or company in question immediately. Additionally, you can report it to the Federal Trade Commission (FTC) which is the main federal agency that deals with scams and frauds.
Scams involving money are becoming prevalent online. The Federal Trade Commission (FTC) received more than 2.8 million fraud reports in 2021, with losses to American consumers totaling USD$5.8 billion, an increase of more than 70% from the previous year. In other parts of the world, the situation is the same.
Finding measures to be secure is essential since con artists are becoming more audacious and inventive daily. If not, you risk continuing to lose your hard-earned money online. The methods to avoid online scams in 2023 are covered in this post.
Pay using safe systems
The average order value in e-commerce as of October 2022 was approximately USD$129.23 (GBP £106.11), which is a sizable sum of money to lose. Utilizing safe payment methods for all online transactions is your winning strategy.
Utilize online wallets that have a good reputation. A company like Cash App has ratings of 4.7/5 on iOS and 4.6/5 on Android. Although the app is secure, you should be aware of the common tricks con artists employ to trick you into sending money or divulging important information. You can prevent Cash App frauds by being aware of the tactics used by con artists.
For instance, con artists frequently exploit the weekly Cash App freebies. They trick app users into believing they have won money by posing as corporate representatives. To release the wins, they do, nonetheless, ask for a modest fee. The meager sums they extort from tens of thousands of gullible victims add up quickly.
Avoid deals that sound too good to be true.
Everything that seems too good to be true usually is. Fraudsters profit from consumers’ greed and thirst for significant financial savings. Discounts are common in internet retailers, but you should be cautious when seeing a 90% reduction. No honest vendor would part with such a huge money since they couldn’t turn a profit. So, investigate too-good deals further to determine their veracity.
Black Friday, Cyber Monday, Super Saturday, Halloween, Father’s Day, Mother’s Day, Easter, and New Year’s Day are all occasions when con artists prey on consumers. Black Friday in 2022 saw 87.2 million individuals shop online compared to 72.9 million shoppers in-store. Cybercriminals have a great chance to profit from such massive audiences. Pay closer attention during this holiday season.
Use the appropriate helpline number.
You’ll frequently experience problems with your banking or cash transfer apps and choose to contact assistance. Perhaps a hidden charge was applied to your account, or you received two charges for a particular purchase. You may typically use your preferred search engine to look up the company’s customer service phone number. Because people typically trust results that rank highly, choose the ones that are among the top search results.
However, there is no assurance that these figures correspond to those the business offers. Fraudsters will resort to all means necessary to deceive search engines and gain a high ranking. If you phone those numbers, they can demand your account information and withdraw all of your money.
You might want to use in-app help for your safety. The likelihood of cybercriminals taking over the organization’s primary messaging systems is low. Additionally, if you want to contact customer service, make sure you get the number from the business’ website.
Skip the pyramid schemes
A pyramid scam is an untrustworthy and unviable business strategy that depends on the constant addition of new members. Depending on how many new members join the system, the pioneers typically receive enormous profits. When no one is left to hire, the project will undoubtedly fail. Before you recover your investment, it could collapse, leaving you with significant loses.
According to statistics, 99.8% of participants in product-based pyramid schemes and 90.4% of those in naked pyramid schemes lose their money. Unless you’re one of the first participants, your odds of making money off of these business ideas are minimal. Avoid making any investments at all in similar schemes.
There are a few warning signals of pyramid schemes that you should be aware of:
- a focus on enlisting new members
- No real goods are being sold
- False promises of large returns in a short amount of time
- Promises of quick cash without work Absence of records of product sales income that can be verified
- Take caution if you see any of these indicators in a profitable proposal. Since all pyramid schemes fail, it is wise to stay away from them.
Be wary of new romantic interests.
You might find your soul mate through online dating. Scammers, however, have gotten into the world of online dating. 547 million USD were lost by victims in 2021, an increase of 80% from 2020 statistics. The feelings involved in romantic relationships are prime bait for con artists.
Romance scammers frequently assume the persona of someone yearning for love. Usually, they make use of other people’s profile photographs. Once they make contact with you, they quickly fall in love and start requesting financial favors, such as money transfers to their account for immediate requirements. They will keep asking for money from you until you realize you have been duped.
Doing your homework is the key to getting out of this kind of circumstance. Before handing the interested party money, arrange a physical meeting. Any solicitations for money before the romance develops should be taken seriously.
Never click on scam emails.
You should exercise caution online because there are around 611,877 phishing sites in the world. Phishing attacks are typically launched via emails or social media posts that appear to be important communications from representatives of organizations you may be working with. They might even pretend to be officials from the government who urgently require certain information from you.
Pretending to be from the Internal Revenue Service (IRS) and demanding urgent payment of a fee or the submission of certain papers is a typical tactic. When you fall for their lies and click the links in their emails, you’re taken to a phishing website where all of the information you provide is stolen and used for evil.
Here are some warning signs of phishing emails:
malicious email addresses
messages that are written in a threatening manner
requests for information that should be evident. For instance, since they already have your Social Security number in their database, the IRS shouldn’t ask for it.
Links to websites other than the official website of the organization
Avoid opening phishing emails at all costs. However, if you accidentally open one and discover something suspect, close it right away before providing any information.
Recheck the URLs
For malevolent objectives, cybercriminals operate phony versions of well-known e-commerce websites. The name of the official website is frequently misspelled. One can change Amazon to Amazzon or Amaz0n, for example. Product listings on fake websites could resemble those on the real one quite a bit.
They want to trick you into spending money on the promoted goods on the bogus website. They steal vital credit card details during checkout in order to commit identity fraud. If you finish the purchase, you could also lose money.
Shop from official websites to keep yourself safe from these scams. Verify that there are no typos in the website names. Furthermore, sloppy grammar in product descriptions is a warning sign. You can also verify if the company’s logo and typography are being used.
Implement antiviral software
The built-in defenses that come with operating systems might not be as efficient as specialized antivirus software from a third party. You might want to invest in and set up tools that have capabilities for Internet security. They are able to identify malware and warn you before you access. They even prevent your machine from downloading spy software.
Additionally, antivirus software can assist with blocking phishing emails, strengthening your firewall, assessing the security of websites, preventing visits to risky ones, and managing the IP addresses permitted to remotely connect to your devices. All of these precautions work to ensure your online safety.
Make sure your antivirus software is up to date often because hackers are constantly evolving their strategies. You might not be protected against assaults by outdated databases.
Use a password manager
You should secure your online financial accounts with not-so-obvious passwords that are hard to crack. Use an intricate combination of small and upper-case letters, numbers, and symbols. You can generate unique ones using a password manager. Additionally, these programs can let you know if any of your credentials have been hacked and recommend the proper course of action.
You might wish to enable two-factor authentication in addition to creating a secure password. Ideally, you should enter the verification code supplied to your phone number or email to validate a login attempt to your financial account. This additional sign-in step protects your accounts because a scammer will be prevented from continuing once the verification code is required.
Report instances of fraud
Cybercriminals are aware that many victims are often reluctant to disclose scams. And so they have more room to commit wicked deeds frequently. Scams can be reported to the appropriate government agencies using the websites provided, greatly reducing the risk of recurrence. Apps for messaging can also block reported emails and phone numbers.
Conclusion
In conclusion, online finance scams are a growing concern in 2023, and it is important to be aware of the tactics that scammers use and take steps to protect yourself. By being cautious of unsolicited emails or messages, watching out for too-good-to-be-true offers, using security software, and keeping your personal and financial information private, you can help protect yourself from becoming a victim of online finance scams. If you suspect that you have been a victim of a scam, don’t hesitate to report it to the authorities.
