10/21/2024
How to Protect Yourself Against These Six Common Scams
During special occasions (i.e. birthdays, graduations, weddings, holidays, etc.), itâs normal to be a bit more lavish with spending. With temptations around every corner, in fact it is hard not to be. Scammers know this and will use it against unsuspecting victims if theyâre not ready and aware of the various tactics that can be employed. Read on to learn more about six of the most common scams that people can experience especially during the holidays and what you can do to better protect yourself and stop them from happening.
1. Phishing
A term coined all the way back in the mid-1990s, phishing is still a prominent way for hackers to lure individuals into divulging sensitive information due to its simplicity of operation. Today, hackers have a lot more âmodus operandiâ when it comes to phishing options including smishing (text messages), vishing (voice calls) and spear phishing (targeted phishing).
Some of the key phishing methods that hackers may employ include:
â Holiday deals and discounts
â E-card scams
â Travel scams
â Fake contests or surveys
What can you do about it?
When dealing with emails and any form of media on a computer or smartphone, it is important to be mindful of any links clicked or any actions taken that could divulge sensitive information or data. Although phishing is a straightforward technique that hackers use, without interaction from the user side, its effects are limited. Below are some additional recommendations on how you can become more phishing-resistant.
-> Donât click on unsolicited or suspicious links:
If working in a web browser, hover over any links to check their destination before clicking. Additionally, be cautious of shortened URLs and steer clear of links using unsecured âhttpâ instead of encrypted âhttpsâ where possible.
-> Beware of urgent requests:
Speed and urgency can greatly increase the likelihood of a phishing attack being successful if youâre dealing with a fake user at the same time. This psychological trick, combined with an unsolicited request or link, can be a deadly combination. Thus, always be skeptical of urgent demands for personal or financial information.
-> Verify sources:
On the internet, an average of 1.4 million new phishing sites are uploaded every month. As such, it is essential to know that the sources youâre dealing with are valid and trustworthy before taking any actions based on them. Always double-check the senderâs email address and the legitimacy of the website to give yourself peace of mind.
2. Social Media Scams
Due to the proliferation of social media into our daily lives, this is another critical platform that scammers can use to take advantage of people from all walks of life. From ads alone, Americans were said to have lost $2.7 billion to social media scams on sites like Facebook and Instagram, according to a recent FTC report. Nearly half of fraud complaints on these platforms involved consumers who purchased a product or service through an advert but never received what they bought.
What can you do about it?
-> Purchase gifts online through a verified site:
Instead of clicking through an advertisement link on social media, always search for the company online through a valid IP address to see if the item and price are the same. Larger, more trusted retailers such as Amazon, Walmart and Target can be a good reference point for prices, which should also offer in-person pickup.
-> Verify account authenticity:
When communicating with well-known brands or public figures, verified badges can indicate that the account is a trustworthy one worth dealing with. It is a good idea to avoid accounts with misspellings or slight variations in names and ultimately be confident that who youâre dealing with is genuine.
-> Review and adjust your privacy settings:
Thankfully a lot more social media companies are paying more attention to privacy and giving users more options to protect themselves. For example, on Facebook, you can easily set up two-factor authentication whenever there is a login on an unfamiliar browser or device. You also have the option to limit who can see what you share, manage connected accounts from Instagram and remove tags from public posts.
3. Gift Card Scams
Due to the convenience and popularity of gift cards, gift card scams are a pervasive form of fraud. Because of the availability of digital versions as well as physical, a scammer can employ numerous different techniques and methods to trick a victim and carry out this kind of hoax.
What can you do about it?
-> Be wary of requests for payment with gift cards:
Often scammers can impersonate officials, family members or even celebrities asking for payment via gift cards. Starting with a small amount, this can quickly add up once a story is believed by the victim. Verify such requests directly with the relevant person or agency using genuine contact information and steer clear of fake accounts.
-> Scrutinize the card:
Concerning physical gift cards, fraudsters can often modify and alter pre-sold cards (for example the payment stripe) to suit their purposes. When receiving a card as a gift, always inspect it for signs of tampering or damage. If the packaging looks altered or the PIN is exposed, donât use it.
-> Keep the store receipt :
Please retain the store receipt in the event that the purchased gift card is discovered to be compromised.
-> Report issues promptly:
When it comes to compromised credentials and online transactions, speed is key. If you encounter any problems with a gift card â for example a drained balance or unauthorized transactions-report it to the retailer or issuer as soon as possible so they can take the necessary actions required.
In the spirit of giving and goodwill, itâs also important to be proactive about safeguarding yourself from scam. Stay informed, verify legitimacy and always trust your instincts. Remember, a vigilant approach is the best gift you can give yourself and your loved ones.
4. Delivery Scams
With more and more consumers preferring modern methods for shipping and delivery of items, it pays to be a lot more cautious when dealing with any communication about gifts especially during the holiday period. Scammers will often contact unsuspecting folk about a âmissedâ delivery with a link to book a new one. In this scenario, the link is not genuine and can lead to compromised payment details which the scammer can then use for purchases of their own. If you think you have been scammed, itâs best to call your chosen bank or card provider straight away and you may be able to freeze your card online to stop any more needless spending.
What can you do about it?
-> Contact the delivery company or retailer directly to check on the delivery status:
The perceived stress of a missed delivery can often prompt people to take action on a phishing link when ordinarily they wouldnât. To stop this, cut out the malicious man in the middle altogether and visit a trusted website or application to check up on the delivery status of your items.
-> Take your time:
Scammers always hope that youâll act without thinking. For that to work, they need an essential element to be on their side; time. When coming across this type of scam you have nothing to lose by taking a breath and thinking through what is being asked of you. More often than not, you will think twice about carrying out various actions when you have enough time to really contemplate what is being asked of you.
-> Shop from reputable and well-known retailers:
Shopping from trusted retailers can help to minimize the risk of dealing with fraudulent sellers or fake websites. Always remember to never give out your bank details unless paying for something genuine in a trusted and secure environment.
5. The Fake Job Posting Scam
With companies downsizing and rising unemployment, many people are actively seeking employment opportunities. This provides ample opportunity for scammers who will seek to lure job-seekers with work-from-home or temporary in-person roles. In doing this they may be able to obtain personal information (PII) or fees for fake training materials.
What can you do about it?
-> Research the company:
To uncover more about potential employers, research is your friend. Is there much of an online presence for the company? Are there any reviews from previous employees? What did the reviews say? These are all questions that can help to uncover more information about the opportunity and, importantly, whether it is a real one.
-> Beware of unusual hiring:
In todayâs era even nominal jobs often have numerous well-structured steps to go through before an offer of employment. Have you interacted with a recruiter or manager? Does anything seem strange about the interview process itself? In the context of scams, the âhowâ is just as important as the âwhatâ and it pays to take heed of the details.
-> Avoid upfront payments:
Legitimate employers donât ask for payment to apply for a job or for training materials. Always be wary of any requests for money or personal financial information.
6. Charity Scams
From fake charities to bogus phone calls, unfortunately charity scams often peak during the holiday season when people are more inclined to donate. According to the FTC, in the US in 2020, there were over 46,000 reports of charity scams, with reported losses exceeding $66 million. If youâre an older adult, it pays to be even more cautious as with these scams, the older generation are often targeted more frequently.
What can you do about it?
-> Donate directly:
Instead of responding to unsolicited requests, good practice is to donate directly through the charityâs official website or by sending a check to their registered address. Avoid wiring money or giving cash. It is also a good idea to ensure that the charity is a registered 501(c)(3) organization.
-> Watch for red flags:
Be cautious of charities with names that sound similar to well-known organizations, unsolicited emails or calls asking for donations. A reluctance to provide detailed information about the groupâs mission and how their funds are used could also be a definite area for concern.
-> Report suspicious activity:
If you suspect youâve been the victim of a charity scam or have been targeted, report it to the Federal Trade Commission (FTC), your state Attorney Generalâs office, or local law enforcement.
References:
1. The Latest 2023 Phishing Statistics, AAG.
https://aag-it.com/the-latest-phishing-statistics/
2. Holiday Scams and Ripoffs to Avoid in 2023, Forbes Advisor, Nasdaq
https://www.nasdaq.com/articles/seasons-cheatings:-holiday-scams-and-ripoffs-to-avoid-in-2023
3. Charity Scam Statistics in 2023, DataProt.
https://dataprot.net/statistics/charity-scam-statistics/
