These days, internet fraud is omnipresent. Most people and most organizations, regardless of their location or industry, were probably targeted multiple times already. The line between those who fell prey and those that didn’t is thin – the victims were, most likely, just a bit naive.
People who get their bank accounts drained first reach out to the banks, an anonymous bank manager told PC Magazine. The banks, however, can do very little, and instead redirect the victims to the police.
“It’s very sad,” they said, speaking about the real-life effects of internet crime.
Criminals don’t care if their victims are in good standing, or poor. They will target their life savings, home, and dignity, all for a little profit. Phishing remains the most prevalent attack, deceiving unsuspecting victims into believing they are interacting 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, compromising bank accounts and other valuable information.
Cheating the system
“I call phishing ‘out cheating’,” says economist Dr Darrin Baines. “You must at some level trust the person who’s conning you. So, for example, someone sends you an email saying ‘I’m in Africa, why don’t you send me some money?’. There must be something in that narrative that triggers the feeling that they’re worth trusting.”
Happily, shoppers are becoming more web savvy, spending more online and getting ripped off less. “Last year an estimated £153million of card fraud took place over the internet – a decrease of 16 per cent from 2008, when e-commerce card fraud losses were approximately £182million,” says Mark Bowerman, spokesperson for the UK Cards Association.
In the same period, credit and debit cards were used to buy a record £47billion worth of goods and services online, which was up 15 per cent from 2008. So the percentage of dodgy web transactions is dropping – but that doesn’t mean you should get complacent.
Bowerman advises consumers to get familiar with the latest advice in the Cardholders section of the Card Watch website. Knowing which cons are in operation is key to staying safe online. In some cases, the swindles are old ones 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 exploit various tactics to defraud unsuspecting individuals, collectively siphoning billions of dollars annually into the underground economy. Staying informed about the latest scams is something we all must do.
A common technique is advanced fee fraud, where victims are lured with promises of substantial financial gain, only to be subjected to escalating fees and expenses. This predatory approach can lead to devastating financial consequences, including bankruptcy and even suicide.
The infamous Nigerian 419 scam is a prime example of advanced fee fraud. Victims receive emails claiming to be from the family of a deceased official seeking assistance in transferring a large sum of money. While the initial request may seem innocuous, 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 are instructed to pay various fees and taxes, ultimately losing money and never seeing their “winnings”.
It’s essential to remember that unsolicited offers of wealth, especially from unknown sources, are highly suspicious. If you haven’t participated in a lottery or competition, it’s unlikely that you’ve won. Even if you did participate, always double check via other means. As a bank manager wisely advises, always exercise caution and verify any unexpected claims of financial gain.
When gain is really loss
While we’re talking about easy money, it’s worth keeping your eye out for pump-and-dump scams. Here, criminals buy up a bucketload of unloved shares. Inboxes around the world are then sent spam tipping the stock as a sure-fire winner.
The hope is that people will contact their brokers, buy the stock and push its price higher. When the price shifts up, the scammers unload their holding and trouser a profit. This sell inevitably depletes the price and punters around the world are left nursing a loss.
The infallible prediction scam is also a criminal’s favourite. Here you’re promised, say, the name of a winning horse for a fee. You pay and you get a nag’s name. But the scammer is also talking to other people, telling them different horses in the race will win.
Inevitably one will win and the person who receives that horse’s name will believe the scammer is somehow in the know. When the next race comes along, the scammer contacts his pool of now seduced clients and sends them different horses’ names. Again, some will inevitably get the winner’s name, further enhancing his reputation. In essence, the scammer is playing a mathematical game where he can’t lose.
Human loss for profit
Playing with emotion is a lucrative game for scammers, and within hours of a natural disaster, emails begging for help begin to flood inboxes. But these emails are spam, and rather than collecting money for charity, the sites they point to save credit card details for later use.
It’s a nasty con that exploits human kindness, but it’s easy to avoid by waiting until an appeal is launched in the media and visiting the official site when it’s announced.
Doctor Feelbad
A large amount of spam concerns fake drugs, where spammers target those looking for a good time. Viagra, stimulants, smart drugs and prescription-only medicines are all apparently freely available via internet pharmacies. In some instances, outfits have even offered cannabis and ecstasy.
The problem with buying illicit drugs online is that you’re hardly likely to complain if they don’t arrive. If you don’t get what you paid for, there’s no comeback. And what happens if the pharmacy is simply collecting credit card details? It isn’t worth the risk.
The cold call support con
Yet another typical scam involves cold callers posing as representatives from your internet service provider, claiming that your computer is infected with a virus and requires immediate attention. To address the purported issue, they request remote access to your device.
From there, they can do two things: Either ask for payment (and steal your credit card information in the process), or install malware on the device, using the remote access you provided.
