Thankfully, data protection laws mean companies are greatly restricted in what they can do with this data. However, if you make some of this information available, on social media for example, or if one of these companies suffers a data breach, you can turn into an easy target for scammers using advanced fraud tactics.

In 2021, the FTC reported that it had received over 2.8 million fraud reports, with consumers losing up to $5.8 billion. In this article, we’re going to explore what the most common types of online fraud are, as well as how you can best protect your identity when using the internet, so you don’t become part of these statistics.

The Basics of Online Fraud

 What is online fraud?

Fraud is any attempt to solicit money, goods, or gain from individuals or organizations by using deception. Online fraud then, is a fraud that is committed using various means of connecting with people on the internet.

Why do fraudsters use the internet?

 Arguably, with how simple it is for anyone to construct an entirely false identity online, as well as the sheer amount of information we share about ourselves publicly, the internet has made committing fraud easier than ever.

Why is your online identity valuable to fraudsters?

Sometimes, fraud will result in scammers gaining access to your online accounts or email address, which they will then use to scam others who trust you. This identity theft is a huge concern online because it can result in you losing important documents and data, as well as your reputation, and the (sometimes very large sums of) money needed to reclaim your identity.

The Warning Signs of Advanced Online Fraud

Below are some tactics that online fraudsters employ to get your details or money. Familiarising yourself with these warning signs will help you spot scams from the moment fraudsters make contact.

Creation of Urgency -Fraudsters need to push you into a corner, to get you to give them what they want as quickly as possible. Emotional manipulation and social engineering are frequently employed by scammers. Any legitimate business or contact will understand that you need to take your time if payment is concerned.

Too Good to be True - One of the early warning signs of fraud is being offered a prize or price that is irresistible. Fraudsters know that if they offer you something you want, you’ll be much more likely to fall into their trap. The same goes for an overwhelming amount of positive reviews on a site’s products or services. Remember, if something seems too good to be true, that’s probably because it is.

Cash in Gift Cards - Any cash transactions you make can often be traced and recalled by your bank. This is why fraudsters who are attempting to solicit payment from you will often ask you to send it to them in gift cards. As soon as someone asks you to send payment through gift cards, cease all communication.

Links in Emails - Many fraud attempts will originate in your email inbox. Any email that requires you to click on a link should be regarded with suspicion. It may seem harmless, but sometimes a single click can give away very personal information about yourself. Only open links or attachments from senders whom you trust, and block any that you don’t recognize.

What Are Some Advanced Fraud Tactics?

One of the easiest ways to protect yourself from online fraud is to familiarise yourself with the most common scams that individuals fall victim to. Below we’ve listed the 5 most reported frauds in the US, as well as how you can spot and stop them.

1. Imposter Scams

These fraud attempts involve a scammer taking on a false identity, chosen specifically to make you more likely to trust them and give them what they want. For example, a common imposter scam involves receiving a distressing phone call or email from a long-lost family member who has found themselves in an emergency, that will only be solved if you pay up.

You should be wary of any correspondence from people who you don’t immediately recognize. If this is truly someone close to you asking for help, they will be willing to wait while you double-check the information provided.

2. Job Opportunity Scams

These fraud attempts target those of us who are looking for employment, by advertising ‘dream’ jobs, usually on job boards and listing sites. By hosting a fake interview, the fraudsters gain a lot of valuable information on your identity that they can use against you in the future.

Be sure to scrutinize any information about the company and interviewer you are provided with, and be wary about any interview that is conducted remotely, over instant messenger, or through phone calls.

3. Shopping Scams

Fraudsters who use online shopping scams will create fake stores, filled with products at discounted prices, and often with a whole host of 5-star reviews. It can seem even more legitimate if you have visited a fake store through a social media ad. By purchasing from these fraudulent stores, you give away not only your money but incredibly important information such as your card details.

Use third-party sites such as Trustpilot to check independent reviews on any store you have concerns about. You should also make sure that the URL for the site begins with ‘HTTPS’, as these sites will encrypt any data you give to them. Finally, if you do choose to purchase from an online store you’re a little skeptical of, be sure to use a payment method with consumer protection.

4. Sweepstakes and Lottery Scams

Have you ever visited a site and received a pop-up telling you that you’ve won a new iPhone? Then you’ve come across this type of fraud before. By informing you that you’ve won a prize, these fraud attempts draw you in with the promise of something valuable. However, it turns out that you can only claim your prize by giving away your details, or even by paying a deposit.

You should ignore any prize for a competition that you have not entered. This goes for pop-ups on sites and emails. To add to this, any lottery that requires you to pay out for the prize is almost always illegitimate.

5. Technology Support Scams

These frauds originate with a pop-up, email, or call informing you that a virus or fault has been found on your device. The scammer may try and impersonate someone from your device’s manufacturer to come across as trustworthy. Then they’ll ask you to download some software that will allow them to fix the issue, but in reality, they will take control of your device and have access to everything stored on it.

Your device’s manufacturer will rarely if ever, reach out to you first if there is an issue with your device. If you do receive correspondence of this kind, do not give out any information, and instead reach out to your chosen tech support using official emails and phone numbers found on their website.

Determining Your Online Identity

To best protect yourself from fraud on the internet, you should know when and where you have and are currently sharing information about yourself online. Once you’ve got a hand on these sites, you’ll be far better equipped to protect your online identity.

Most websites will have access to your IP address, which can also give them your location, as well as details about the device and browser you’re using. To protect this information, a paid VPN is a useful tool.

Any site on which you have an account has access to your email, so it can be worth trawling through them and deleting your accounts on sites you no longer use. On top of this, there are services you can use that will identify which of your accounts may have been compromised. Once you know this, you can change your password.

As for social media, putting your accounts private or limiting the people who can view your profile will protect any personal information you decide to share. Moving back to basics, you should never share your address, current location, contact details, or place of work on your social media.

How to Protect Your Online Identity 

Protecting yourself from fraud attempts online isn’t a difficult or time-consuming undertaking. In fact, with a few simple tweaks in your behavior, you can ensure that online fraudsters will not be able to find out enough about you to initiate a scam.

1. Use different usernames and passwords for each account

If you use the same password across a range of websites, once fraudsters have access to this password, all of these accounts are compromised. It can get tricky to remember such a range of passwords, so be sure to utilize a password manager to keep them stored and safe. This trick also means it’ll be much harder for fraudsters to track you between sites.

2. Change passwords regularly

Even if you’re using different passwords for each site, one can still become compromised through data leaks. This is why it’s important to change your passwords for your most regularly used accounts at least every 3 months.

3. Use a different email for work and personal correspondence

Access to your email can give fraudsters a huge amount of information on your identity, as well as allow them to use your identity to scam those in your contacts list. A useful tactic to limit the sites that have access to your email is to use different addresses depending on what you’re signing up for. For any important correspondence, a separate email address with a strong password that is regularly changed will help protect your online identity.

4. Keep any device software up to date

Using out-of-date software opens your device up to attacks from those looking to commit fraud. Completing software updates as and when they become available will help protect your devices with the latest anti-virus from your device’s manufacturer.

5. Block suspicious emails or accounts

Any account or email address that you don’t recognize that reaches out to you should be regarded as suspicious. For the best protection, block these contacts and accounts straight away. Most email servers will have an automatic spam filter, but if one of these fraudulent emails does make its way into your inbox, avoid any links and block the sender.

 Sources

https://www.ftc.gov/news-events/news/press-releases/2022/02/new-data-shows-ftc-received-28-million-fraud-reports-consumers-2021-0

https://www.experian.com/blogs/ask-experian/most-common-types-of-fraud/

https://www.arborfcu.org/blog/10-warning-signs-its-fraud

https://www.webroot.com/gb/en/resources/tips-articles/how-can-i-protect-myself-from-identity-theft-online

https://www.esafety.gov.au/young-people/protecting-your-identity

https://www.globalsign.com/en/blog/what-data-is-collected-about-you-online

https://www.pewresearch.org/internet/2015/05/20/americans-views-about-data-collection-and-security/

https://www.met.police.uk/advice/advice-and-information/fa/fraud/online-fraud/cyber-crime-fraud/

The post Protecting Your Online Identity in the Age of Advanced Fraud Tactics appeared first on MoneyThumb.

And that’s exactly why fraudsters have developed ways to take advantage of it.

The internet can often be an unsafe space. This is most true for those with little experience dealing with scammers, who don’t know how to look after their devices or themselves. Thankfully, there is a range of fraud protection methods that are easy to apply online. But everyone has different reasons for using the internet and we all use it in different ways. How do we know what fraud protection we need?

What is Internet Fraud?

Internet fraud is a broad term used to refer to a range of internet-based crimes. Most often, these crimes involve scamming internet users, in one way or another, out of money or information. Some examples of fraud are:

• Phishing
• Data Breaches
• Business Email Compromise (BEC)
• Identity Theft
• Malware
• Ransomware

Many of these attacks will be launched with a range of techniques. Some internet fraud requires your computer to defend against software-based fraud attempts. Other types of fraud are based on social engineering. This means fraudsters will prey on your personality and manipulate your emotions to get you to hand over what they want. For the best protection, you should make sure your browser and trusted sites are equipped to defend against hacks, as well as learn about how to spot scammers’ techniques.

How to Determine what Kind of Internet User You Are…

 Determining what kind of internet user you are will help you work out which fraud protection best suits you. It’ll also prevent you from shelling out on expensive solutions that you don’t need.

An easy way to find out what type of fraud protection you need is to discern what you want to protect. The more sensitive the information you store online, the stronger your fraud protection will need to be.

A great question to start you off is how much could someone find out about you or your business, simply by looking at your search history and the information on your social media? Scammers will often use site data and your personal details to get the best of you. Any information that you wouldn’t want them to know is what you’ll need to protect.

However, chances are all this information is stored in a variety of different places strewn across the net. Collating what data you’ve shared and stored online, where you’ve stored it, and your passwords for these sites is a smart choice. Then, you’ll know exactly where and when to implement fraud protection and cybersecurity techniques.

Finding the Best Fraud Protection for You

Below, we’ve listed a few of the most common types of internet users. Find out which one best describes you to see what kinds of fraud protection you should implement on your devices. If you find yourself quite low on this list, you might also like to implement all of the suggestions for other internet users too, to ensure you have the highest level of protection from internet fraud.

 Casual

Who they are - Casual internet users will go online for basic internet searches, to look up information on frequently used sites, and perhaps to stream content through popular subscription services. But, they will rarely download anything onto their devices aside from basic apps. They likely use a lot of the most common social media sites and also use the internet to check up on the news. The casual internet user may shop online, but only from the most popular retailers. The casual internet user will likely also have an email account that they use to communicate as well as sign up to sites.

What they need - Even if you only use the internet for the bare necessities, you could still be targeted by fraudsters. The easiest way to protect yourself is to learn how to spot sites that might not be safe. To start, you should only ever access the internet through secure wifi (never public hotspots without a password), as fraudsters could also be targeting the connection. Next, make sure any sites you visit are secure by checking for the ’S’ in the link. A secure site’s URL will begin with the letters HTTPS://. Without this ’S’ for security, your data and accounts could be targeted by fraudsters.

Internet = Best Friend

Who they are - In our modern world, many of us fall into this category of internet users. This individual’s computer/phone has become one of the most vital gadgets needed to plan and organize their life. They use their devices for admin purposes such as online banking, checking emails, backing up important documents, and storing sensitive data about themselves, as well as sharing their innermost thoughts and partaking in hobbies. Not to mention, they love to stream videos, shop online and check their social media, and Google is the first place they go when they need to win an argument. Without the internet, they’d have to try very hard to keep themselves occupied.

What they need - If you’re using the internet to complete financial transactions through online shopping or banking, you’ll want to ensure your bank and any other site you use to transfer funds is completely protected, too. Sites will not store your card details without permission. To stay safe it’s often better, though slightly more time-consuming, to enter your card information each time. However, if you do plan on saving your card information on an e-commerce site, make sure that they are PCI compliant and will encrypt any saved card data. Regularly change your passwords to frequently used sites, and perhaps consider purchasing a trusted password planner to encrypt/store this data and make sure you never forget a new password. Finally, you might also like to try a paid VPN service to protect you from fraud if you must browse on unsecured wifi networks.

Streamer/Influencer

Who they are - Streamers and influencers don’t just use the internet to enhance their lives - it’s their entire livelihood. The variety of social media accounts these public figures use will have several followers that may have taken months or years to build up. Influencers work to streamline these money-making accounts and turn their personality into their online branding. As well as sponsorships and partnerships, influencers and streamers will reach out to each other and make business connections using these accounts and their dedicated site. They may also use their site to sell merchandise or other subscription services. This makes these accounts incredibly valuable both for influencers and online fraudsters.

What they need - Despite popular belief, fraudsters are bold enough to target those in the public eye. Part of being an influencer is putting yourself out there for your followers or subscribers. However, you should still be very careful with what personal information you share on your popular accounts, so make sure to keep track of all the details you share. Learning how to spot suspicious private messages will ensure you know when a fraudster is trying to target you. You should also report and block any comments that look like they could be scams, to protect yourself and your followers. To add to this, if you market merchandise to your followers then you must ensure your site is fully compliant with data protection regulations where you’re based.

Remote Worker

Who they are - Many remote workers will use a company intranet that automatically protects them, and any work they do, from fraud. However, there are lots of types of remote workers, such as freelancers, who need to get online to complete their work. They might also use websites to formulate their diary and schedule, as well as store lots of information about customers as well as colleagues. Their email accounts are very valuable to online fraudsters looking to get in with a company through a naive employee.

What they need - Before you accept a job as a remote worker, make sure to ask your potential employer about what protections are in place to ensure your data will be safe. As a remote worker, your company or business may also provide you with fraud protection, such as a VPN, to use on your work devices. If you’re a freelancer or don’t have a separate device for your work, you might want to consider VPN protection for your phone or computer. Make sure to follow any guidelines your IT team or management has set out when it comes to where information can be stored and how often passwords must be changed. You should also alter the visibility and privacy of any social media you use that lists your place of employment and contact details, such as LinkedIn.

Small Business Owner/Manager

Who they are - Depending on the size of the small business, there may be a team of employees working under them or it might just be the small business owner. The small business owner will not only manage and maintain an eCommerce site. They may use the internet to send, submit and store invoices and financial records, as well as employee and customer data. They will likely have a digital marketing and branding plan that spans a vast range of social media sites, as well as a blog filled with SEO content. The public nature of the business and the breadth of their information spread across the internet makes small businesses easy targets for fraudsters.

What they need - Small businesses, no matter how small, can fall victim to almost all of the internet frauds listed above because they have the most to lose, thus fraudsters have the most to gain. The more people that work for your business, the more vigilant you need to be when protecting your staff, as well as ensuring they are not fraudsters themselves. A rigorous vetting process for your employees, as well as a thorough guide to how to use the internet at work, is the best practice for fraud protection from within. When it comes to financial protection, if you have the funding and resources, you might like to hire more than one accountant, so that no individual has access to all your financial data. Only online banks with trusted business accounts, and make sure you keep the numbers for fraud protection lines handy and easily accessible, just in case anything should happen. Finally, make sure business bank statements are mailed to a separate address from where your business is registered, perhaps directly to your home.

Sources

 https://www.fortinet.com/resources/cyberglossary/internet-fraud

https://www.bannerbank.com/financial-resources/blog/tips-to-prevent-online-fraud#.Yxnxxi8w3BI

https://www.bajajfinserv.in/insights/10-ways-to-safeguard-yourself-from-online-frauds

https://www.zdnet.com/article/online-security-101-how-to-protect-your-privacy-from-hackers-spies-and-the-government/

https://www.lifelock.com/learn/internet-security/safe-online-shopping

https://www.builderfly.com/is-it-safe-to-store-credit-card-details-on-ecommerce-sites/

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