Nowadays, internet fraud is ubiquitous. Most people and most organizations, regardless of location or industry, have likely been targeted multiple times. There’s a fine line between those who fell prey and those who didn’t: the victims were most likely just a bit naive.
People whose bank accounts are emptied first contact the banks, an anonymous bank manager tells PC Magazine. However, the banks can do little and instead refer the victims to the police.
“It’s very sad,” they said, talking about the real consequences of internet crime.
Criminals don’t care whether their victims have a good or bad reputation. They will focus on their savings, home and dignity, all for a little profit. Phishing remains the most common attack, tricking unsuspecting victims into believing they are in contact with regular people, their friends and family, or legitimate institutions. By enticing victims to click on malicious links, criminals gain access to sensitive login credentials, which can compromise bank accounts and other valuable information.
Cheating the system
“I call phishing ‘fraud,’” says economist Dr. Darrin Baines. “You have to trust on some level the person who is scamming you. So, for example, someone sends you an email saying, ‘I’m in Africa, why don’t you send me some money?’ There has to be something to that story . that gives the feeling that they are worthy of trust.”
Fortunately, shoppers are becoming increasingly internet savvy, spending more online and getting ripped off less. “An estimated £153 million of card fraud took place online last year – a 16 per cent drop on 2008, when losses from e-commerce card fraud were around £182 million,” said Mark Bowerman, spokesperson for the UK Cards Association .
In the same period, credit and debit cards were used to buy a record £47 billion worth of goods and services online, which is 15 percent more than in 2008. So the rate of unreliable internet transactions is declining – but that doesn’t mean you should become complacent become.
Bowerman advises consumers to take note of the latest advice in the Cardholders section of the Card Watch website. Knowing the downsides is key to staying safe online. In some cases, the scams are old scams that have migrated to the Internet. But what are they? Let’s take a look at the scams, how to spot them and how to avoid them.
Internet scams
Threat actors use a variety of tactics to defraud unsuspecting individuals, funneling billions of dollars annually into the underground economy. Staying informed about the latest scams is something we all need to do.
A common technique is advance fee fraud, in which victims are lured with promises of substantial financial gain, only to be subjected to escalating fees and costs. This predatory approach can lead to devastating financial consequences, including bankruptcy and even suicide.
The infamous Nigerian 419 scam is a prime example of sophisticated fee fraud. Victims receive emails claiming to be from the family of a deceased civil servant seeking help in transferring a large sum of money. While the initial request may seem innocent, it quickly escalates into a series of fraudulent fees and demands.
Another common scam is the fake lottery, where victims are falsely notified of winning a substantial prize. To claim the prize, they must pay various fees and taxes, ultimately losing money and never seeing their “profits.”
It is essential to remember that unsolicited offers of wealth, especially from unknown sources, are highly suspicious. If you haven’t entered a lottery or competition, the chances of you winning are slim. Even if you did participate, always check it another way. As one bank manager wisely advises, always exercise caution and verify any unexpected claims of financial gain.
When profit is actually loss
While we’re talking about making money easily, it’s worth watching out for pump-and-dump scams. This is where criminals buy up a lot of unloved shares. Inboxes around the world are then spammed, making the stocks the winner.
The hope is that people will contact their brokers, buy the stock and increase its price. When the price goes up, the scammers unload their holdings and make a profit. This sale inevitably lowers the price and gamblers around the world suffer losses.
The foolproof prediction scam is also the favorite of criminals. For example, here you are promised the name of a winning horse for a fee. You pay and you get the name of a nag. But the scammer also talks to other people and tells them that different horses will win in the race.
Inevitably, someone will win and the person who receives that horse’s name will believe that the scammer is somehow in the know. When the next race comes around, the scammer contacts his pool of now enticed customers and sends them the names of various horses. Again, some will inevitably get the winner’s name, further enhancing his reputation. Essentially, the scammer is playing a mathematical game where he can’t lose.
Human loss for gain
Playing with emotion is a lucrative game for scammers, and within hours of a natural disaster, emails pleading for help flood into inboxes. But these emails are spam, and instead of raising money for charity, the sites they link to keep credit card information for later use.
It’s a nasty scam that exploits human kindness, but it’s easily avoidable by waiting for a media appeal and visiting the official site when it’s announced.
Doctor Feelbad
Much of the spam concerns fake medicines, with spammers targeting people looking for fun. Viagra, stimulants, smart drugs and prescription drugs are apparently all available for free through internet pharmacies. In some cases cannabis and ecstasy were even offered.
The problem with buying illegal drugs online is that you’re unlikely to complain if they don’t arrive. If you don’t get what you paid for, there is no comeback. And what happens if the pharmacy only collects credit card information? It’s not worth the risk.
The cold call support con
Another typical scam involves cold callers posing as representatives of your Internet service provider and claiming that your computer is infected with a virus and requires immediate attention. To address the alleged problem, they request remote access to your device.
From there, they can do two things: either request payment (and steal your credit card information in the process), or install malware on the device using the remote access you provided.