Biggest Online Scams and How to Protect Yourself

The internet has opened up many opportunities for people to communicate, learn, work, shop and entertain themselves.

However, it has also created new avenues for criminals to scam unsuspecting users and steal their money, personal information or identity.

Online scams are constantly evolving and becoming more sophisticated, so it is important to be aware of the common types of scams and how to avoid them.

Here are 7 of the biggest online scams ever that have affected millions of people around the world.

Photo by Leon Seibert on Unsplash

Online Dating Scam

Online dating is undeniably popular, and that is why criminals target legitimate users through fake profiles and try to get money from them.

One of the biggest online dating frauds took place in 2013, when a group of scammers from Nigeria and South Africa created fake profiles on popular dating sites and social media platforms.

They pretended to be wealthy businessmen, soldiers, doctors or engineers looking for love and romance. They would then establish a relationship with their victims, often over several months, and ask them for money for various reasons, such as travel expenses, medical emergencies, legal fees or business investments. The victims, who were mostly from the US, UK, Canada and Australia, were duped into sending over $200 million to the scammers.

To avoid online dating scams, you should:

• never send money or personal information to someone you have not met in person.
• be wary of anyone who professes their love too quickly, asks you to communicate outside the dating site or social media platform, or claims to be in a difficult situation that requires your help.

Global Fraud Ring

In 2012, a global fraud ring was uncovered that involved hackers from Russia, Ukraine and other countries.

They hacked into the computer systems of several payment processing companies that handled transactions for prepaid debit cards issued by banks around the world. They then increased the withdrawal limits and balances of these cards and distributed them to their accomplices in different countries. These accomplices then used the cards to withdraw cash from ATMs in a coordinated manner, often within hours or minutes of each other.

The fraud ring managed to steal over $45 million from more than 27 countries in two separate operations.

To avoid becoming a victim of this type of scam, you should:

• always monitor your bank statements and report any suspicious transactions or unauthorized charges.
• use strong passwords and security software to protect your devices and accounts from hackers.

Cyber Credit Card Fraud

Credit card fraud is one of the most common types of online scams that affects millions of consumers every year.

Cyber criminals use various methods to obtain credit card information from unsuspecting users, such as phishing emails, fake websites, malware or skimming devices. They then use this information to make fraudulent purchases online or offline, or sell it to other criminals who do the same. In some cases, they also create fake identities using the stolen credit card information and apply for loans or other services in the name of the victims.

To avoid cyber credit card fraud, you should:

• never click on links or open attachments from unknown or suspicious sources.
• avoid entering your credit card information on unsecured or unfamiliar websites.
• always check the URL and look for signs of encryption, such as a padlock icon or https:// before the web address.
• use a credit card instead of a debit card when shopping online, as credit cards offer more protection and limit your liability in case of fraud.

ATM Hackers

ATM hacking is another form of cyber crime that involves breaking into the software or hardware of automated teller machines (ATMs) and manipulating them to dispense cash without authorization.

In 2016, a group of hackers from Taiwan and Eastern Europe hacked into the network of a major bank in Taiwan and installed malware on dozens of ATMs across the country. They then remotely instructed the ATMs to spit out cash at predetermined times and locations, where their accomplices collected the money. The hackers managed to steal over $2 million in less than a day.

To avoid becoming a victim of ATM hacking, you should:

• always use ATMs that are located in well-lit and secure areas, preferably inside banks or other reputable establishments.
• inspect the ATM for any signs of tampering or skimming devices before inserting your card or entering your PIN.
• shield your PIN from prying eyes or cameras and report any suspicious activity or malfunctioning ATMs to the bank or authorities.

Email Phishing

Email phishing is one of the oldest and most widespread online scams that involves sending fraudulent emails that appear to be from legitimate sources, such as banks, government agencies, online services or familiar contacts. The emails typically contain a link or an attachment that directs the recipients to a fake website or downloads malware onto their devices. The scammers then try to trick the recipients into providing their personal or financial information, such as passwords, account numbers, social security numbers or credit card details. The scammers then use this information to access the victims’ accounts, steal their money or identity, or commit other crimes.

To avoid email phishing, you should:

• always be cautious of any unsolicited or unexpected emails that ask you to click on a link, open an attachment, or provide your personal or financial information.
• check the sender’s address and the email’s content for any spelling or grammatical errors, mismatched logos or domain names, or unusual requests.
• verify the authenticity of the email by contacting the sender directly using a different channel, such as phone or another email address.

Tech Support Scams

Tech support scams are another common type of online scams that target users of computers, smartphones, tablets or other devices.

The scammers usually pose as representatives of well-known tech companies, such as Microsoft, Apple, Google or Amazon, and contact the users via phone, email or pop-up messages.

They claim that the users’ devices have been infected by viruses or malware, or have some other technical issues that need to be fixed urgently. They then offer to help the users by remotely accessing their devices, installing software, or asking them to pay a fee for their services. However, instead of helping the users, the scammers either damage their devices, install more malware, steal their personal or financial information, or extort more money from them.

To avoid tech support scams, you should:

• never trust any unsolicited or unexpected calls, emails or pop-up messages that claim to be from tech support.
• never allow anyone to remotely access your device or install any software without your consent.
• never pay any fees or provide any information to anyone who claims to be from tech support. If you need technical assistance, you should always contact the official customer service of your device manufacturer or service provider using their official website or phone number.

Lottery Scams

Lottery scams are another old but still prevalent type of online scams that involve sending emails or letters to potential victims claiming that they have won a large sum of money in a lottery, sweepstakes or other prize draw.

The scammers usually use the names and logos of well-known organizations, such as Coca-Cola, FIFA, Microsoft or UNICEF, to make their claims seem more credible.

However, in order to claim their winnings, the victims are asked to pay a fee for taxes, processing, delivery or other expenses. The scammers then keep asking for more money until the victims realize they have been scammed or run out of money.

To avoid lottery scams, you should:

• never respond to any emails or letters that claim you have won a lottery or prize that you did not enter.
• never pay any fees or provide any information to anyone who claims to be from a lottery organization.
• remember that legitimate lotteries do not charge any fees for winners to claim their prizes.

Conclusion

Online scams are a serious threat that can cause significant financial and emotional harm to millions of people around the world.

Therefore, it is important to be vigilant and informed about the common types of scams and how to avoid them. You should also use reliable security software and tools to protect your devices and accounts from hackers and malware. You should also report any suspicious or fraudulent activity to the relevant authorities and platforms.

By following these tips and staying alert online, you can reduce your chances of becoming a victim of online scams and enjoy the benefits of the internet safely and securely.

Stay safe, my friends! 
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