What are Scams and How do you Protect Yourself from Being a Victim?

Scammers and fraudsters use various tactics to steal your personal information. From someone coming to your door to an unexpected email or phone call, the internet opens up other ways for scammers to target you. Chances are high that you’ve come across the most common type of scams: the spam email from a Nigerian prince, pretending to be from HMRC (HM Revenue & Customs), or even your bank. However, not all mail scams can be quite easy for people who spot them and avoid them at first glance like the ones previously listed. Some are more sophisticated cases that require more time invested in figuring out what the deal is. Here’s more about scams, types of scams, and how you can avoid becoming a victim.

What is a Scam?

Scammers use dishonest schemes to take money or something of value from people. They are con artists who deceive their victims into handing over their money by way of a quick-profit scheme that is in fact a trick. The victim, if they were taken in by the scammer, loses his or her hard-earned cash as soon as the scammer takes it away. Scams can be words on paper too: another word for scammers is conmen. Conning somebody out of what’s theirs happens often with these guys and this means that there’s no shame, even when it comes to scams like email fraud and phishing.

Types of Scams

You can protect yourself from scams by knowing what to look out for and taking the necessary steps. Some of the most common types of frauds and scams are listed below:

Debt Settlement and Debt Relief Scams

Debt settlement or relief companies will often promise to renegotiate, settle, or change the terms that individuals have in their debt. Dealing with these types of service providers can be risky and could leave you more heavily in debt.

How to Avoid The Scam:

When we’re facing debt, it’s easy to be tempted by those companies that promise they can settle your debts. Avoid doing business with a company that guarantees they can settle their debts or charges you up-front fees before performing any services. Instead, work with a free or nonprofit credit counseling program that will help you work with your creditors instead of paying someone else to do so for you.

Charity Scams

A charity scam is an act of deception when a thief poses as a real charity or makes one up that sounds real, in order to get money from you. Charity scams often increase during the holiday season and around natural disasters and emergencies (such as storms, wildfires, or earthquakes). Be careful if any charitable organization calls for donations, especially ones that ask about previous donation pledges that you’ve never made.

How to Avoid The Scam:

Ask the charity for their address and phone number. The best way to ensure that they are a legitimate organization is by checking them out through their website or with a trusted third-party source.

Romance Scams

A romance scam is a ruse that happens when someone you’re interested in tricks you into falling for them and they are really just after your money. Romance scams can happen in various ways, usually online. Scammers may also spend time really getting to know you before asking for any loans or access to your finances.

How to Avoid The Scam:

The internet can be a great resource to use in order to find love, but be smart about who you connect with and what information you share. You don’t want to give out your sensitive personal data like bank or credit card numbers or your Social Security number.

Wire or Money Transfer Scams

Scams, like the “grandparent scam,” use money wire transfers to steal your cash. One example of a wire transfer fraud is posing as a grandchild and saying they are in a foreign country, needing help with getting funds transferred to them. Once the sender picks up on this scam, it’s very hard to get their money back.

How to Avoid The Scam:

Remember to never transfer money to someone you are not familiar with. If you have transferred money and it turns out the person is a scammer, contact your bank or company immediately and ask if it can be reversed.

How To Generally Protect Yourself from Scams

There are a number of steps you can take to prevent unwanted calls and texts. You can block them or filter them out before they reach you.
Do not give your personal information in response to any request that was unexpected because the legitimate organizations will never call, email, or text asking for it.
A legitimate business will give you time to make a decision. Anyone who pressures you to pay or give them your personal information is a scammer and should be avoided.
Scammers can be smart. They always want you to pay with some kind of gift card or a money transfer service. Never send them any cash and never deposit their checks- that’s just how they get people!
Report scams to the FTC (Federal Trade Commission)

Common Scams to be Aware Of

References

EIAN, I. C., YONG, L. K., LI, M. Y. X., QI, Y. H. & FATIMA, Z. 2020. Cyber attacks in the era of covid-19 and possible solution domains.
ESAFETY 2022. Online scams and identity theft. eSafety Commissioner.
IRSHAD, S. & SOOMRO, T. R. 2018. Identity theft and social media. International Journal of Computer Science and Network Security, 18, 43-55.