Are there times you get to some website and shake your head in disapproval after getting a business offer? Have you fallen for online lies and left wondering how you couldn’t notice the conmen’s captivating language?
This article will show and explain to you the most common online frauds that you can fall for despite the intensity of your wits.
Online fraud is a widespread case because consumers often believe what they read, whether legit or not. In this article, we will tackle some of the most common online frauds that consumers cannot get past them without being hooked on.
Types of online frauds
Online fraud is a criminal offense that a consumer falls for and is lied to about a purchase or a business opportunity, and they end up losing money.
Many cases are a result of online fraud like deception and conmen that sound valid when read. You can check the FATF grey countries list to know the countries that are considered a haven for online scams and money laundering.
The following are examples of major types of online fraud clever people can fall for.
1. Online scams that you will get an employment
Employment scam is the most common type of fraud that makes you stay glued to the screen, wondering about the payment. Everybody who is going through a financial crisis is bound to fall into this deception.
The liar will ask for some fee so that you get an appointment for an interview. Because of desperation, you will willingly send the money after they block you and delete the number or evidence.
You don’t need to be smart as a consumer to evade this type of fraud. It is the most convenient way to get employment. Whether you are a college graduate or still figuring out life, you need money.
Most sites have been considered a full predator zone with many scammers that have rendered many people hopeless to believe in blogs due to fraud. It is not easy to take these criminals to court, making it an easy pass for cheating.
2. Collection of tax fraud
A survey that has been conducted has comprehensive statistics that scammers are cashing in a huge percentage of cash in fraud of collecting tax.
When the tax season begins, most people are not hesitant to consult the best people to file their returns. They head to the internet, pay scammers the tax, and fall for the deception.
Whether you are wise or not, waiting until the last minute to pay your taxes can make you seek online services and eventually fall for the fraud.
The scammers are very good at this, where they threaten to arrest you or get your property taken for compensation. They ask for the money to be sent into their debit cards or gift cards, and you end up getting conned.
3. Online gifting like lottery wins
Lottery fraud is a prevalent scam where the scammer calls and demands a small payment to enjoy your money. You are lured into this scam and end up believing in them.
But come to think about it, who wouldn’t want such money like winning the lottery? The thought of getting such an amount of money for free is ecstatic, Right?
Many scammers have become so abundant in this because many youths are always on the internet. Research has shown that most people, approximately 60 percent have fallen into this trap, and 16 percent lost a lot of money.
4. An exchange of fake checks for cash
A fake check is revoked after some time. Bankers will not realize that they are handed a phony check until the system notices.
The online scammer will send the check to an online user, after which they will demand cash. Unfortunately, the person will be willing to deposit fully, and eventually, the verification is rendered null.
The scammer enjoys the benefits, and the online user, however smart they might be, won’t recover the cash.
5. Phony technology sites
These are electronic support sites that come at the ad part, assuring the user of an electronic that they have a virus and need debugging. They ask for some cash in exchange for the fake service.
The user falls for the trap because they imagine their expensive machine gets wasted. Several people have fallen for this trap by the scammers.
6. Online trading
Online scammers are smart people, too, but in deception. They will hack some crucial sites like Amazon or create similar trading sites.
Online fraudsters will mark the prices of items and promise free transportation if you make an order. You will conveniently pay the money, but they fail to deliver the item.
The scammers will claim not to have received any cash and apologize for not having an online connection like missed messages and calls.
They can also use the wrong check to compensate you. Adding the cherry on top, they will claim that they have sent extra cash and send them money. Due to your good morals, you fall for the trap.
7. Online scams as a result of phishing
This is a type of scam that is not common because they lie online by pretending to be a representative of an institution. They ask for very vital information, including a password to your debit card. You end up exposing all your credentials, and they withdraw all the cash.
However, this type of scam hasn’t been successful, and the percentage that falls for this cybercrime loses a hefty lump sum of money.
You don’t need to be a smart consumer to evade this online fraud because it sounds so legitimate.
8. Holiday Scams
Holiday scams exploit the festive season by preying on people’s generosity and excitement. These scams often involve fake charities, counterfeit goods, fraudulent online shopping deals, and travel scams.
- Fake charities: Fraudsters create bogus charities to solicit donations, often mimicking legitimate organizations. They may use emotional appeals or leverage current events to pressure potential donors into giving money.
- Counterfeit goods: Cybercriminals sell fake products, often luxury items or popular electronics, at discounted prices. These counterfeit items are usually of inferior quality and may not function as advertised.
- Fraudulent online shopping deals: Scammers create fake online stores or offer enticing discounts on popular products. Victims who fall for these scams may lose money without receiving the promised goods.
- Travel scams: Fraudsters offer fake travel deals, such as discounted flights or accommodations. Victims may lose money on non-existent bookings or fall victim to phishing scams designed to steal personal information.
9. Dating Scams
Dating scams occur when individuals create fake online profiles to deceive others into romantic relationships. The goal is often to gain financial advantage, steal personal information, or even engage in human trafficking.
10. Artificial Intelligence Scams
The rapid advancement of artificial intelligence (AI) has unfortunately opened new avenues for fraudsters. One of the most concerning developments is the rise of deepfake scams, where AI is used to create highly realistic fake videos or audio of individuals saying or doing things they never did. These deepfakes can be used for various malicious purposes, such as blackmail, defamation, or financial fraud.
Another AI-powered threat is the sophistication of phishing attacks. AI can be employed to create highly personalized and convincing phishing emails, making it more difficult for victims to detect the scam. AI-driven chatbots can engage in realistic conversations with potential victims, building trust before attempting to steal sensitive information.
11. Password and Data Theft
Password and data theft is a pervasive cybercrime where malicious actors steal sensitive information such as usernames, passwords, credit card numbers, and social security numbers. This data is a valuable commodity in the underground economy, allowing criminals to commit a wide range of fraudulent activities.
Cybercriminals employ various techniques to acquire this information, including phishing attacks, malware, hacking, and data breaches. Phishing involves deceiving individuals into revealing their credentials through fraudulent emails or websites disguised as legitimate entities.
Malware, such as keyloggers and spyware, can secretly capture keystrokes and monitor online activities to steal sensitive data. Hacking involves exploiting vulnerabilities in computer systems or networks to gain unauthorized access and extract information. Data breaches occur when organizations fail to adequately protect their databases, leading to the exposure of large amounts of personal information.
The consequences of password and data theft can be devastating for victims. Identity theft, financial loss, and reputational damage are just some of the potential repercussions. Criminals can use stolen information to open new accounts, make fraudulent purchases, and assume the victim’s identity. This can have a significant impact on your financial well-being and emotional state.
12. Digital Kidnappings
Digital kidnappings, also known as ransomware, are cyberattacks where malicious actors encrypt a victim’s computer files and demand a ransom to decrypt them. These attacks can have devastating consequences, including significant financial loss, data loss, and disruption of critical operations.
Ransomware attacks often involve sophisticated techniques, such as phishing emails containing malicious attachments or links, exploiting vulnerabilities in software, or infiltrating networks through compromised credentials.
Once the malware is installed, it rapidly spreads through the victim’s system, encrypting files and rendering them inaccessible. The attackers then display a ransom note, demanding a payment, usually in cryptocurrency, to provide the decryption key.
Victims of ransomware attacks are faced with a difficult decision. Paying the ransom does not guarantee that the attackers will provide the decryption key, and it also funds their criminal activities. On the other hand, losing critical data can have severe consequences for individuals and businesses alike.
13. Pharming
Pharming is a sophisticated cyberattack that redirects users to fraudulent websites without their knowledge or consent.
This is achieved by manipulating the Domain Name System (DNS), which translates website addresses into IP addresses. Attackers can either compromise the DNS server or infect a user’s computer with malware to alter the DNS settings, causing the user’s web traffic to be rerouted to a fake website.
These fraudulent websites are designed to mimic legitimate ones, such as banks, online retailers, or email providers. The goal is to deceive users into entering their personal information, including login credentials, credit card numbers, and social security numbers.
Once the attacker has obtained this information, they can use it for various malicious purposes, such as identity theft, financial fraud, or account takeover.
Pharming attacks are particularly dangerous because they can be difficult to detect. Users may not realize they are on a fake website until it is too late. Pharming attacks can target a large number of victims simultaneously, making them a highly effective tool for cybercriminals.
14. Credit Card Reward Point Fraud
Credit card reward point fraud is a type of financial fraud that involves the unauthorized use of reward points accumulated on a credit card. These points are essentially digital currencies that can be redeemed for various goods and services, making them a valuable target for cybercriminals.
There are several ways in which credit card reward point fraud can occur. One common method is through data breaches. When a company that stores customer credit card information experiences a data breach, the stolen data may include reward point balances. Cybercriminals can then use this information to access and transfer reward points to their accounts or sell them on the black market.
Another way credit card reward point fraud can happen is through account hacking. If a cybercriminal gains unauthorized access to a credit card account, they may be able to transfer reward points to another account or use them to make fraudulent purchases. This can be particularly damaging for victims, as they may not realize their reward points have been compromised until it is too late.
Credit card reward point fraud can also occur through fraudulent transactions. In some cases, fraudsters may use stolen credit card information to make purchases and accumulate reward points on the victim’s account. Once the fraudulent transactions are discovered, the victim’s reward points may be forfeited or reversed, leaving them with nothing to show for their spending.
Conclusion
Fraud is a common type of crime that has left a lot of people grieving due to losses. You need to be careful especially if you need a loan.
Understanding these types of online fraud is crucial for protecting yourself and your personal information. Always exercise caution when sharing personal details online, be wary of unsolicited messages, and keep your software and devices updated with the latest security patches.
The above points are the most common types of online fraud cases to avoid when you master them. You don’t need to be smart to escape the wrath that comes with online scammers. A lot of people on the net act blindly, and they become victims of these cybercrimes.
I am Adeyemi Adetilewa, an SEO Specialist helping online businesses grow through content creation and proven SEO strategies. Proficient in WordPress CMS, Technical Site Audits, Search Engine Optimization, Keyword Research, and Technical Writing (Portfolio).
I help brands share unique and impactful stories through the use of public relations, advertising, and online marketing. My work has been featured in the Huffington Post, Thrive Global, Addicted2Success, Hackernoon, The Good Men Project, and other publications.
