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The Best Cybersecurity and Fraud Prevention Tips

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The Best Cybersecurity and Fraud Prevention Tips
Cyber Security

Frauds, scams, and identity theft have existed since long before the internet. However, with most of the world now online, these threats have become much easier to carry out, harder to spot for potential victims, and all the more damaging. Since resolving issues caused by online fraud can be time-consuming and rarely successful, preventative cybersecurity is a must.

We all know the standard cybersecurity tips - change passwords regularly, avoid suspicious links, don’t answer emails promising you billions of dollars, etc. But online fraudsters are constantly evolving with each new cyber-security measure. As they become increasingly sophisticated in their methods, it’s up to us to improve our cyber-security and protect ourselves from fraud.

In this post, we’ll detail the warning signs of fraud and scams that you should look out for when using the internet, little-known but effective cybersecurity tips, and exactly how you can avoid falling victim to common online fraud.

Common Types of Online Fraud and How to Prevent Them

There are countless scams that fraudsters undertake, with the aim of getting anything from your account passwords to your life savings, or even ruining your personal or professional reputation. Knowing about the kinds of frauds that are out there can help you spot a scammer from the very first time they contact you.

Here are some of the most commonly used and harmful online scams that you should look out for:

  1. Online Shopping Scams

According to the FTC’s Consumer Sentinel Network, in 2022 online shopping scams and frauds were the number one cause of monetary loss in every age group. Using enticing ads and fake websites, fraudsters can effectively pose as genuine online stores. These stores often look genuine, with very few obvious red flags. Once you’ve made your ‘purchase’, the fraudsters have your money and your payment details.

How to Spot: A new store with prices that are unbelievably low, no privacy policy, and a necessary payment to get a voucher or deal may be an online shopping scam. Online shopping scams also tend to capitalize on holidays such as Christmas and Valentine’s Day or offer merchandise for a current and popular movie or artist.

Prevention Tips: Although it’s nice to patronize small businesses, this can lead unsuspecting victims to be scammed. Rather than clicking on a link in an ad, navigate to the store using your web browser. If you’re suspicious, check out reviews on a third-party site. Finally, if the site asks you to create an account, use a strong and unique password. If in doubt, it’s always better to lose out on a potentially fraudulent product or service, rather than lose your money.

  1. Imposter Scams

In 2021, 17.2% of all reported frauds were impostor scams, making them the second most reported fraud that year. These frauds are so-called because the scammer will approach you and solicit details or money by pretending to be someone else. This is a common tactic used in a number of other fraud attempts, too. The most common impostor scams include romance, tech-support, and investment scams, however, scammers may also pose as your family members or other vulnerable individuals in need.

How to Spot: If you receive a scam call, email, or text from an individual posing as a company you do business with, your bank, your family, or a government agency such as the IRS or Medicare, it will usually come with a sense of urgency. For example, they may tell you your account has been hacked or funds have been stolen from you. Be wary of any attempt to solicit your money or details over the phone, and any attempt to get you to pay up faster than you’re comfortable with.

Prevention Tips: Never give out personal or financial details over email or on the phone. Never pay for a ‘prize’ or bonus up front, and never send payment via pre-paid cards or gift cards. If the potential scammer has called you, inform the caller that you will hang up and call them back on the customer service line listed on that company’s or organization’s official site. Any genuine caller will be more than happy for you to do this.

  1. Investment Scams

Investment scams will involve a fraudster contacting you, seemingly out of nowhere, to invest in a new company or product. These investment opportunities are fake, and once the scammer has your ‘investment’, they will likely cease all contact.

How to Spot: Unsolicited emails, calls, or texts from an individual or business with very little information on search engines asking you to invest in something should always be approached with caution. Any promise of definite profit or success, or attempts to rush payment from you can also be warning signs.

Prevention Tips: Investing can be a great way to make some passive profit. However, you can prevent yourself from becoming a victim of investment scams by calling FINRA at (800) 289-9999 and checking that the individual is licensed. You should also check that the investment opportunity is registered by calling your state’s securities regulator.

  1. Loan Scams

This type of advanced-fee fraud is becoming increasingly common. Scammers will contact you with an ‘approved’ loan, which will be transferred to you on receipt of a hefty upfront fee. Once they have this fee, scammers will cease all contact. If you’ve applied for a loan online, you may be more susceptible to loan fraud.

How to Spot: Any request to quickly pay an upfront fee in return for a larger sum of money, especially through unusual methods such as gift cards or vouchers, could be an attempt at loan fraud. A genuine loan service will not contact you up front with an offer, and will never ask for fees to be paid before you receive the loan.

Prevention Tips: Aside from the usual financial safety tips of checking your bank account and statement regularly, other ways to prevent loan scams include avoiding sites that guarantee a loan before you have given them your details. Find out whether lenders are registered by contacting your state’s bank regulator.

  1. Romance Scams

Another kind of impostor fraud is, romance scammers will create a fake online identity for ‘catfish’ victims by providing them with attention and affection. Once these scammers have gained your trust, they may ask for gifts, money, or even personal details such as your social security number or passport.

How to Spot: These impostors will have fake or very few images on their dating profiles. Romance scammers may also use ‘love-bombing’ to secure your trust. They will praise and compliment you, quickly deeming what you have together as special to emotionally manipulate you. Any attempt to get you to send personal or financial details, gifts, or money to someone you have never met should be regarded with extreme caution.

Prevention Tips: Finding love on the internet is one of the joys of the 21st century, so there’s no need to avoid trusted dating sites. However, you should be on the lookout for fake profiles. Be mindful of what you post on your profile, as these scammers will likely do extensive research to find ways they can manipulate you. If in doubt, reverse image search the pictures they provide you. Never send inappropriate photos of yourself or your financial details to someone whose identity you have not verified.

  1. Job Scams

Employment fraud happens when a scammer poses as a head-hunter, or recruitment agency, or places a fake ad on job sites or forums. By interviewing you for a fake, and too-good-to-be-true, position, the scammers solicit personal details and eventually money from you.

How to Spot: Usually these scammers will approach you for a job you have not applied for. The advertisement may be vague and poorly written. They will likely ask to interview you over instant message, never in person or over the phone.

Prevention Tips: Research any company that offers you a position with them, especially if the pay does not line up with your experience or expertise. If your research comes up lacking, it is likely a fake company/job. Scrutinize any company email addresses or URLs for slight misspellings or mistakes. Call the genuine company on the number listed on their site, and check that the potential scammer actually works there.

  1. Tech Support Scams

Yet another common impostor scam, these are some of the most harmful online frauds, especially among those who are not digitally literate. The fraudster will pose as an employee of a tech company such as Apple, Microsoft, or your chosen anti-virus software. They will inform you there is an issue that can only be rectified by giving the scammer control of your device or sending them an advanced fee.

How to Spot: If there is genuinely a problem with your computer, it is incredibly unlikely that the manufacturer will contact you by phone, email, or text. Similarly, if you receive a security pop-up, if it is a genuine article it will simply be a warning, and will not solicit you to click links or call a number. Unprofessional speech or writing may also be a warning sign that you are in contact with a scammer.

Prevention Tips: Never follow links or call numbers that appear in pop-ups. Never download any software that is sent to you by an unsolicited caller and never consent for them to take control of your device. If in doubt, call the genuine company that the fraudster is posing as using the phone number on their website.

  1. Spam Email Scams

Finally, spam email fraud attempts are something many of us are familiar with, but they still catch people out regularly. These malicious emails are often attempts to get you to divulge your personal and financial information in return for a prize or to avoid a crisis. They may impersonate an individual or popular company to get you to click a link. In the worst-case scenario, this link may infect your device with malware.

How to Spot: Spam emails usually come from senders you have never come into contact with before. Their email addresses may be long strings of seemingly random letters or numbers, or set up with less-than-reputable email providers. If the email contains links, or attachments, or has an urgent or scary tone, it is likely a spam email.

Prevention Tips: Make sure your email provider has a dedicated spam folder that can filter out any suspicious emails or phishing attempts. If ever a suspicious email makes its way into your main inbox, mark it as spam and block the sender immediately. Never click on links or open attachments in emails unless they are from trusted senders whom you have consented to receive emails from.

General Cyber-Security Tips

 Now that you know how to prevent fraud, here are some general cyber-security tips to add another level of protection online.

Use Secure Sites - If a website doesn’t have HTTPS at the start of its URL, take extra care to guard your data, or avoid the site entirely. This ‘S’ stands for secure, and means any data sent between your browser and the site’s server is fully encrypted and inaccessible to fraudsters.

Use a VPN - This tip is especially important if you regularly use public wifi. A VPN will protect your internet traffic and it’s worth using one at all times if possible.

Block and Report - Blocking the sender is an immediate way to stop possible fraud attempts. Whether it be social media messages, phone calls, text messages, or emails, simply block the potential scammer. If possible, report the threat as well.

Protect Your Email - Your personal email is likely what you use for almost every site you have an account with. This is why it’s so valuable to fraudsters looking to know more about you. Change your email password once every 3 months, and use two-factor authentication.

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Denise Grier

Denise Grier is a freelance writer, pro blogger, SEO and WordPress expert.

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