How to avoid scams and fraud is becoming a full-time activity as there are so many new scams every day. Scams are so common that most law enforcement agencies have whole departments of officers working on countering the latest scams and tracking down the perpetrators of these annoying crimes.
Many people around the world have lost money to scams. You may even know someone that has been scammed. However, many scams are not reported as the victims were too embarrassed to report the crime to law enforcement authorities.
Read this article to the end to make sure you know about all the most common scams and fraud. The more you know the less likely you will fall victim to these clever crimes.
ATM Skimming
Many people still withdraw cash from bank auto-teller machines (ATMs) and pay for purchases with cash. However, watch out on ATMs for card skimming devices. The new devices are very slimline and less noticeable than the old-style card skimmers. If your card goes through a card skimmer the scammers have your card details and will be able to withdraw money from your bank account. A tiny pinhole camera records you entering your PIN. The scammers can use this information to create a dummy card that lets them draw on your account.
Since the COVID pandemic many people moved to using card payments and pay-wave instead. Maybe it’s time for you to use card payments.
Some banks have banking apps that allow you to withdraw from an ATM using your phone without a physical card. This is another way to beat those card reading scams.
Intercepted Credit Card in the Mail
You ordered a new credit card or your existing card has expired and the bank is sending a new card in the mail.
The card never arrives.
It has been intercepted by thieves. Or there is a crooked postman that is stealing your mail.
If your new card does not arrive in a reasonable timeframe, contact your bank to find out when it was dispatched. The bank will put a stop on the card until it arrives or cancel it altogether.
There is one way to stop your cards being stolen from the mail. Ask the bank to hold the card at a branch where you can pick it up after you have shown adequate identification. Or have the bank send the card registered mail where you have to pick it up from a post office after you have shown identification.
Avoid Online Credit Card Fraud
The Unexpected Tax Refund
There are many clever frauds where the scammers like to make their victims think they are receiving money.
Scams work like this. You receive an email from a government agency advising you of a tax refund. All you need to do is click the link to your bank and enter your account details.
These are fake emails that copy government and bank websites. Never click the links and never give any bank information through these links. The criminals are simply trying to collect your banking information.
If you really believe you have a tax refund, contact the tax agency through their real channels of communication.
The Friend Asking for Urgent Money
The scam looks like this: You receive an email or text message from a friend, family member or senior staff member telling you they need urgent access to funds. They may be stuck interstate or overseas and their credit card in not working. The email address and phone number look real and they are stuck for money. They ask you to transfer them some funds which they will pay back later.
What’s really happening: The scammers have hacked the email account or stolen the phone. They have looked up the contact list and are pretending to be the owner of the email address or phone. You would be transferring your money straight into the scammer’s bank account.
Never transfer any money to someone without independently verifying who they are really. Call their phone and check who answers. If no one answers don’t send money. Reply to the email and ask a question that only the owner would know. Ask the email owner to phone you.
The Parcel Pickup
The scam looks like this: A postal services company sends you an email telling you that you have a parcel for delivery. To collect the parcel you need to print off a label to redeem your package.
What’s really happening: Rather than printing a label, you’re actually downloading a computer virus or ransomware. Once it’s installed, scammers can use it to take control of your computer, lock files and even delete files. The scammers will demand money to take back control of your computer.
Ensure you back up your computer regularly and use a firewall. Always use virus protection software on your computer.
The Speeding or Parking Fine
The scam looks like this: A government body or law enforcement agency, emails you to tell you that your vehicle has a speeding or parking violation. You need to download the photo they’ve taken to confirm you’re the owner of the vehicle.
What’s really happening: The link you click on downloads a virus or ransomware to your computer. You’ll have to pay the fraudsters to get back control of your computer.
The Overseas Job Placement
The scam looks like this: A recruitment business posts an advertisement for a job in another country. You apply for the job and receive the job. The employer is going to pay your travel costs, but you will need to pay the recruitment business for your passport, visa, other associated expenses first.
What’s really happening: You will be making payment to a fake recruitment business. There is no job. The scammer collects your personal information and money.
The Computer Problem & Solution
The scam looks like this: You receive a call or email from your internet service provider. They’ve detected a virus on your computer and it’s sending error messages back to their network. The good news is that they can fix it. They request you give them remote access or download a file that will fix the problem.
What’s really happening: You’ve handed control of your computer to a scammer or downloaded a virus. They may try to steal your personal data or hold your computer to ransom until you pay.
Avoid scams and fraud by blocking spam emails and independently verifying emails from your internet service provider.
Free Public WIFI
The scam looks like this: You’re at the airport, hotel or some public space and need to connect your computer or mobile to the internet. When you search for a connection, you find a free WIFI connection right nearby.
What’s really happening: You’ve actually just connected to a fake network. There is usually a log on process where you have to enter some personal data. The fake connection allows a scammer to intercept all your network traffic and steal more of your personal information.
Avoid scams and fraud by only connecting to a WIFI that you know is real. Ensure you use anti-virus software and your firewall is on.
The Store Voucher
The scam looks like this: A social media account for a well-known brand posts that it’s giving away free gift or discount vouchers. To claim your free voucher, all you need to do is like the post in Facebook.
What’s really happening: This is a ‘like farming’ scam. The media account is fake and is set up by a scammer who’s trying to get as many likes as possible. They’ll on-sell these likes – and your profile – to other scammers. You may receive spam posts trying to trick you into giving your credit card data.
The Amazing Job Offer
The scam looks like this: An advertisement promises you’ll earn good money from working from home as an ‘accounts administrator’. The job involves setting up a bank account and forwarding money onto another account. You receive a percentage of each transaction as a commission.
What’s really happening: Criminals are using you to launder money through your genuine bank account. The money will be from the proceeds of crime and you could be charged with money laundering which is a very serious crime.
Avoid scams and fraud by not taking up these stupid job offers.
Avoid Scams and Fraud with Knowledge
There are so many new scams surfacing every day. There are fake call centers in overseas countries that hire staff to sit at computers all day and follow processes to scam victims all over the world. Many of these staff are desperate for a job and will do the job to earn money. The real scammers are the managers of the fake call centre. There are many lone-wolf style scammers who steal personal data and try to profit from scamming victims.
As technology becomes more sophisticated, the scammers develop more ways to perpetrate their crimes. So remember, the criminal mind never sleeps and will always be there to try to steal your money. The best defense to avoid scams and fraud is knowledge.