Top Scam Types and How to Avoid Them

There have always been scams, and there have always been scammers, however technology has birthed more scams since its invention. Like a tool, it’s been used in different ways to con unsuspecting victims. This could be via phishing (through emails), vishing (voice calls), smishing (SMS), etc

Then there’s scams via social media platforms, website spoofing, lottery scams, employment scams, etc. Whatever way you chose to look at it, technology or the internet has massively contributed to it. This could be directly (social engineering scams) or indirectly (getting people’s information online and using it to commit fraud)

Common Types of Scams

Crypto Investment Scams

A cryptocurrency scam is a fraud involving fake crypto investment websites set up by cybercriminals. The scammers often use a well designed website, display stocks prediction, and promise returns that are too good to be true.

The minimum deposit is often stated as $250 which might make people lower their guards and give it a try. The scammers would show you fake profits and then goad you to invest more and more money. When it’s time to withdraw the earnings, you’d be told to pay a processing fee after which you’d be blocked from accessing the website or contacting them.

What to do: Do not trade with unregulated brokers or platforms. Always do due diligence by searching the web for reviews, if there’s none, back off. You can also check how long the platform has been existing by using Who.is domain checker. If it is not up to a year or two years, it’s certainly questionable.

Employment Scams

Employment scams are quite common and smarter these days. Fraudsters go as far as impersonating reputable companies, then send job seekers text messages about a remote job opportunity. A high pay is often cited, however, it’s all part of the scheme. Once they’ve established the trust, they’d proceed in their scam which could be disguised as ‘equipment fee’ ‘training fee’ ‘upgrade fee’ etc.

What to do: When you’re offered a job always remember the saying ‘If It’s too good to be true, it certainly isn’t true’. When approached by a job recruiter either online or offline, the first thing to do is research the company and the job opportunity. Find the company on the internet and review their online presence, including their social media. Enter the company’s name and the word “scam” on search engine, paste the email address too to find out if it has been flagged as scam.

Romance Scams

A romance scam is when a new love interest tricks you into falling for them when they really just want your money. Romance scams start in a few different ways, usually online. The scammers often use the pictures and videos of another person, sometimes a celebrity. They may spend time getting to know you and developing trust to fool you into thinking the relationship is real before asking you for money, a loan, or access to your finances.

What to do: Be careful about who you connect with and what information you share online, or over texts or social media. Don’t send money or share sensitive personal information, such as bank account or credit card numbers or a Social Security number, with a new love connection. Learn more about how to avoid romance scams.

Online Shopping Scams

Online shopping scams involve scammers pretending to be legitimate online sellers. They often display discount sales that look too good to be true, and might even impersonate legit brands. They may use stolen website design, logo, product inventories, and even a domain name similar to an authentic retailer.

Sometimes you will receive a knockoff of the item you thought you purchased. Other times you will receive nothing at all.

False Advertising Scams

Most products are advertised and sold with over-exaggerated claims. False advertising is a scam as it use various techniques to manipulate the buyer into making a purchase. For example, one of the fast-growing product scams are ‘electricity saving box’. This scam claims a small white box when plugged in a power outlet can filter dirty electricity and cut down electricity costs. Of course, the box doesn’t work and buyers end up wasting their hard earned money.

There are a lot of product false advertising scams out there; fake weight loss products, mosquito zappers, portable heaters, e.t.c

What to do: Always search for genuine reviews online before buying any product. Back off from any product making outlandish claims that aren’t backed by scientific research and findings.

Phishing

This scam is orchestrated via email. An email from an unknown sender should be treated with caution as it could contain malware if one downloads an attachment in it. On the other hand, it could contain link to spoofed websites; a fake USPS or DHL website, a fake job platform, or even a fake social media link.

Emails like that require you to click on it and complete an action; fill your login details for a social media platform or input your credit card details to pay a shipping processing fee. By so doing, you’ve provided the information the scammer needs.

What do do: Do not click on links or download attachment from an unknown or unverified sender. Always do due diligence no matter how trustworthy the email looks. Have a Zero Trust rule that goads you into verifying the source of an email before responding to it.

Lottery Donation scams

In a lottery donation scam, the scammers may send you an email telling you that you’ve been chosen to receive a charity donation from someone who recently won a lottery prize. Once you respond to the email, you’d be asked to pay a ‘processing fee’ to receive the cash donation without tax.

What to do: Never make an upfront payment for a promised prize, especially if they demand immediate payment.