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Unfortunately, fraud is becoming increasingly common. Your money and your identity are valuable to fraudsters looking to steal both. Most scams used to be quite easy to spot. You’d receive a badly spelled email, claiming to be from your bank, or government official in another country, desperate to give you millions of dollars if you just hand over your bank details and a small fee.
The scammers are getting more sophisticated every day, so you need to be vigilant when it comes to protecting your details.
The serious consequences of scams
Being the victim of a scam can have a terrible impact on your life. The stress of the situation can negatively affect your mental health as well as your finances. There are even cases where the financial fallout of identity theft and scams have resulted in people experiencing extreme financial hardship or even bankruptcy. While this is certainly not common, it is worth it to learn more about what is bankruptcy and how to avoid fraud affecting your long-term financial future.
Common types of scams
There are many ways people try to gain access to your information. The repercussions of these scams can be life-changing as your finances and even credit ratings are affected. There have even been cases where people have had to file for bankruptcy.
These are some of the most common to be on the lookout for.
Dating scams
Online dating can be a minefield at the best of times. But there is a certain type of scam where someone will start to a relationship with you for the sole purpose of accessing your money or personal information. If you start dating someone and they very quickly start asking for money for emergency situations or crises, be very careful.
These types of scammers know how to create situations that manipulate your emotions. They are very good at what they do.
Lottery scams
You’ve won the lottery. Hurray. But you never entered a lottery you’re being asked for personal details and a fee to release the money to you. This isn’t how lotteries work. First of all, you can’t win something that you didn’t enter in the first place. Even if you do win, it should never cost you any money to receive your winnings.
Online auction scams
While sites such as eBay do their best to remove disreputable sellers on the platform, there is still the potential to fall victim to a scam.
Scams on these platforms include not getting what you paid for or receiving goods of poor quality. Always check the reviews of the sellers before you buy them. If they have a lot of bad feedback, save your money. Or, if you suspect there are a lot of fake reviews, likewise, stay away.
Another method on these sites is to try and get you off the platform to do business. Sellers may message you to say that they have another item, or the original seller pulled out. Always conduct your business on the site as you won’t have any buyer protection if you don’t.
Online banking scams
If you receive a text or email from your bank, how do you know it’s genuine? Many scammers will tell you that there is an issue with your account and ask you to log in to verify your details. The emails and websites look convincing, but they’re just stealing your login details, which can then be used to access your account.
Never click on a link in an email or text. If you’re in any doubt at all, contact your bank directly and check.
Phishing scams
Phishing emails pretend to be from companies that you have some kind of relationship with such as online stores, Paypal, or Amazon. They can look pretty convincing and encourage you to click on a link. This link will then install malware on your computer, stealing your personal information and logins. Never click on links within an email unless you are absolutely sure they are from a legitimate source.
Employment scams
There are many legitimate work from home opportunities out there. There are also a number of scams designed to take advantage of peoples who just want to make an income. If a work from home opportunity looks too good to be true, then it usually is. Stay away from multi-level-marketing companies and those people who offer huge salaries and perks bur require a large payment upfront first.
It can be difficult to spot these scams as they often advertise through respected job sites and forums.
Charity scams
Giving money to charity and other good causes is a fantastic thing and should be encouraged. However, there are always people looking to take advantage of that goodwill. The internet has made it much easier to donate to good causes and can have a fundraiser up and running almost immediately in the event of a natural disaster.
When donating to a cause online, ensure that it is a valid account, set up by genuine parties and that the money is going to the right places.
How to protect your personal information
It might not always be possible to 100% secure your information. After all, some of the highest-profile companies in the world have been hacked. But there are some basics you can do to reduce the risk of it happening to you. While you should make it a habit to destroy any unwanted papers with sensitive information on, the truth is that most scams are conducted online, so you need to know how to protect yourself digitally too.
Never give out your pin number
No one should know your banking pin number except for you. Not even your bank does. Never give it out under any circumstances.
Be wary of unsecured networks
Our lives pretty much run on wifi these days. Connecting to free wifi when we’re out and about seems like a no brainer. But how do you know the free wifi you connected to belongs to the venue? Use secure networks or your own data plan whenever you can, especially if you’re using sensitive apps such as your banking apps.
Use a VPN
For complete anonymity when online a virtual private network (VPN). Installing a VPN on your computer and smartphone allows you to encrypt your connection to the internet so that your information and data is secure.
Practice good password security
The average person can have up to 50 logins for various online accounts. One of the worst things you can do from a security standpoint is to use the same password for multiple accounts. If your password is compromised with a particular company, then cybercriminals will try those details on a range of other accounts. If you’re using the same password for a lot of them, they can do some damage.
When you are picking passwords, don’t make them too short or easy to guess. Use combinations of letters, numbers, and symbols.
If you find it difficult to remember your passwords, get a subscription to a password manager such as One Password or Last Pass.
Enable two-factor authentication
If your online accounts have this function, make sure you enable it. Two-factor authentication means that you don’t just need your username and password to get into an account, you will also need a code that has been sent to your phone. By doing this, even if someone has managed to acquire your username and password, it’s very unlikely they have your phone too.
Two-factor authentication is especially useful on your email accounts. After all, what do you do when you forget a password? You reset it via a link sent to your email address. If someone manages to get access to your email account, they can request password resets for your other accounts too.
Check your financial transactions regularly
It’s easier than ever to see where your money is being spent (even though we sometimes might not want to). Most bank accounts and credit cards have apps which let you see account activity in real-time. No more having to wait for your statement at the end of the month.
Check your transactions regularly. If you see one you don’t recognize. Flag it immediately with your bank and freeze your card. Many accounts now let you freeze your card rather than cancel it. Really handy if you think you may have misplaced your card, only to find it in the bottom of your handbag or somewhere else in your house. You can then unfreeze it once you know it’s safe.
Set up credit alerts
With the right information, criminals can take out all kinds of loans and credit cards in your name. You can now sign up with various credit reference agencies to alert you if this happens. If you receive an alert but know that you haven’t applied for credit, you can act quickly to stop it.
Conclusion
It can feel daunting trying to protect your sensitive data from scammers and criminals. Yes, they are coming up with new ways to try and part you from your data, but your responsibilities are still the same. Many of these steps are just common sense advice, such as not using the same password for different accounts. Other areas you may find more challenging, especially as phishing scams continue to look more and more legitimate.
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