Okay, okay, full disclosure: I can’t take all the credit for this topic. A client suggested this one to me and it was such a good idea, I couldn’t pass it up.
So, with online fraud growing increasingly common and complex, what should conscious consumers do to protect themselves?
Internet scams are growing increasingly elaborate, convincing, and complex. With advancements in AI, it’s easier than ever for scammers to personalize information and even generate fake audio and clone voices of loved ones to convince their prey to engage. One of the best ways to avoid falling for a scam is to stay on top of current strategies so you can recognize them when you see them.
Know What’s Out There – And How To Avoid Becoming a Victim
Scams are constantly changing since they only work until consumers start to become attuned to the latest methods. Thankfully, local and national news channels are pretty good at covering these sorts of things. Stay semi-checked into the latest emerging strategies by following your preferred news source. In the meantime, here are a few current scams that have gained traction this year:
PayPal scams: The latest advancement in PayPal scams relies on using real PayPal email addresses to send fake invoices. Most of these come in the form of “money requests” or notifications that a payment is overdue. Sometimes they’ll even notify you that your PayPal account and personal details have been compromised. When you call the phone number provided in the email, it connects you to the scammers — not PayPal.
How to avoid them: Don’t pay unexpected invoices. If you don’t recognize or recall your purchase, call to confirm. And don’t use the phone number provided in the email. Independently look up a published support number from PayPal’s website and reach out using that number so you know you’re speaking to the correct source.
Fake apps: Apple’s App Store and Google Play both screen their apps to ensure anything available for download in their store is safe, but some bad apples (pun intended) have snuck through over the years. These apps can install malware and access your personal data. In 2022, a fake security app called 2FA Authenticator stole banking information from its users. Meta also identified over 400 apps that were taking Facebook login details from users without their consent. These fake apps are usually quickly identified and removed from Apple and Google stores, but it remains an ongoing issue.
How to avoid them: Before installing an app, do your research. Has the developer made other apps? Click on the developer’s name in the app store to learn more information. Legitimate apps will always have a privacy policy. If there isn’t one, that’s a big red flag! And always read the section on data collection before agreeing to a policy. If an app asks for permissions (like access to your camera) think about whether it’s necessary to the functionality of the app. Only give permissions that allow an app to do its thing. Most apps don’t need an all-access pass to the contents of your mobile device.
Pig butchering: What a name, right?! Pig butchering is a part romance/part investment scam. Typically, the scammer and victim first meet on a dating site. The connection is hot and heavy from day one. The scammer will try their best to move the target off of the dating platform and to a private messaging service to remove the security protections built into many dating sites. Once the victim is “groomed,” the scammer shares their recent, wild success with investing (often via cryptocurrency). Note how this is a departure from the well-known Nigerian Prince tactic. They aren’t telling a sad story about needing money. Instead, they’re sharing their success and inviting the victim to get in on the action. The scammer convinces the individual to let them invest their money. The rest is (a heartbreaking) history.
How to avoid it: Think critically when online dating. Does it seem too good to be true? Or is it moving really quickly? If so, proceed with caution. If there’s reluctance to meet in person or requests for money/pushing you to let them invest on your behalf, stay away! Confide in a close family member or friend to be your voice of reason. Sometimes when we get caught up in a new relationship it’s hard to see the warning signs. Sharing with a trusted confidant may help you spot the red flags you’re overlooking.
Fake social media appeals for help: This one is extra sneaky. Ever see a shared post on Facebook about a missing person or pet? Ever share that post or comment asking if the missing person has been found? Unfortunately, sometimes these posts aren’t even real. And you can identify the fake ones by finding the same photo and messaging shared across Facebook but with different locations attached to them. These posts (rightly) gain a lot of traction. People frequently share and comment. This gives the post credibility. After the post has gained a significant number of likes and shares, the creator edits the post to completely change the content, instead rewording the information into a traditional investment scam. But despite the actual post changing, the likes and comments stay the same, which gives the post a broad reach and credibility.
Another angle? The scammer uses the accounts of those people who shared the original post as targets for future scams. Why? Because people who share these types of posts are considered easily impressionable, kind-hearted, and therefore more vulnerable to other scam opportunities.
How to avoid it: You can help stop scams like this in their tracks by only sharing posts about missing people that come from official sources, such as your local police force. You can also do a quick Google search to verify whether the missing person is, in fact, missing.
Trust Your Spidey Sense
Ultimately, you’ve got to trust your instincts. Knowing current scam tactics is a great starting point, but learning to think critically about the information you encounter is most important.
If something seems too good to be true or suspicious, take a bit of time to do some research to see if you can either verify its credibility or confirm that it's a commonly used scam strategy. If you’re contacted by a company or your bank requesting information related to your finances, don’t reply directly. Instead, look up a general 1-800 number or customer support email address from the company page and follow up through those channels. Yes, you may sit on hold for a bit, but wouldn’t you rather make a 15-minute phone call than have thousands of dollars stolen from your bank accounts?