According to the CPA Canada 2021 Fraud Study, 73% of individuals surveyed have received fraudulent requests. Email (44%) and telemarketing (33%) are the most popular targeted strategies. As a result, 33% of the population has been a victim of some kind of fraud at some point.

According to the Canadian Anti-Fraud Centre, the amount of money that Canadians lost to fraud in 2020 was $106.4 million. This figure represents an increase from the approximately $96 million that was lost in 2019.

Scammers are getting more creative, thinking of new ways to deceive you into handing them your money, which is contributing to the huge increase in the amount of money that is being lost to cyber scams. The most effective strategy to protect oneself from falling victim to a scam is to educate oneself about the strategies currently being used by the perpetrators.

Common Red Flags of Scam Activity Online

If you are able to recognize the key characteristics of an online scam, you will be able to learn how to spot one much more quickly. 

Makes an Effort to Earn Trust

It’s common for scams online to try to get you to trust them in some way. It’s likely that it’s posing as coming from a trustworthy source, such as the government, a respected business, your employer, or a relative of yours. Take some time to confirm the sender’s identity before responding to an email that seems to come from a reliable source, such as PayPal, your bank, Amazon, a member of your family, or another reputable organization.

Doing a search on Google for the firm’s contact information is often preferable to clicking a link or calling a number that is provided in an email or text message. This is often the case. You will be protected from the majority of phishing and catfishing schemes online if you take just one simple step.

The Use of Emotion-triggering Messages

Scammers operating online will frequently attempt to elicit fear, rage, or excitement in their victims in the hopes of prompting them to take immediate action. A message like “Your PayPal account is suspended” can convince potential victims of a scam to think twice before taking any action.

If you receive a text message or email claiming that your account has been suspended or that your phone is about to be disconnected, you should delete the text message or email, find the correct contact information online, and make contact with the appropriate party to verify the claim before you take any action.

Fake Mobile Applications

In September 2021, it was reported that Apple’s app store, which is known for its high level of security, had been breached. It appears that some app developers had been using a phony version of Xcode (thus the name Xcode Ghost) to build their applications, not realizing that the version contained malware that was designed to steal passwords and carry out other malicious activities.

Apple claims that it has removed all of these harmful apps from its store. However, this doesn’t rule out the possibility that it may occur once more. You should always read app reviews before downloading them, and only choose apps with a solid track record and a large user base. Also, you can reduce the likelihood of being spied on by limiting an app’s access to your location by altering the privacy settings on your mobile device.

You are Overpaid

One of the scams that occur most frequently on the internet is when a person overpays for an item and then requests their money back. For instance, one type of overpayment fraud involves you winning a monetary prize or receiving payment upfront for a project related to your company.

However, it appears that the client or the company made an error and overpaid you as a result. They want the remaining sum refunded to them (say they sent you $2,400 when they only intended to pay $2,100). Could you try sending the additional $300 that was sent? The check that they sent back turned out to be fake, unknown to you. You have now transferred $300 worth of genuine money, leaving you in possession of $2,200 worth of counterfeit money.

It Entices You With a Great Offer

If you don’t know the person making the claim and the thing they’re promising you sounds like it’s too good to be true, you should assume it’s a scam. For example, they buy something you’re selling on Facebook Marketplace for twice as much as your price.

Once they have you perform some action, such as giving over personal information like an email address, they have accomplished their goal. Always be on the lookout for too-good-to-be-true offers.

How to Protect Yourself From Being Scammed

Even though online scams are devious, it is simple to avoid falling victim to one. Follow the instructions below to avoid falling victim to most types of email, text, or phone scams.

1. Keep an eye out for signs of fraud, such as misspelled words or improper grammar. Organizations that are legitimate pay careful attention to these details.
2. Do not click on links contained in SMS or emails.
3. Never access your account by logging in through an e-mail or a text message.
4. Never dial a number that you find in an email. Instead, you should look it up.
5. Protect your online accounts by utilizing a secure connection as well as a two-factor authentication system.
6. Make your payment with a credit or debit card. They have safeguards in place to ensure that your money is returned to you.

Bottom-line

Online scammers are getting smarter and cheating unsuspecting people. However, protecting oneself from fraudsters on the internet is not difficult. The key is to exercise extreme caution around anybody who comes up to you. If you cannot independently verify the source, under no circumstances should you ever give information or pay money.

Greed can also make people fall for scams, and they can’t be blamed as they might be having financial difficulties. If your debt is racking up and you are overwhelmed, you will likely be vulnerable to scams. You can speak with one of our debt experts at EmpireOne Credit for advice on your best options for debt relief.  Consultation is free, friendly, and non-judgemental.