Online scams are a big business. Billions are lost because swindlers can reach millions through email and social media.
Scamsters are often focused on stealing personal financial information through identity fraud, which they resell to other criminals or use to pilfer credit and bank accounts.
According to Biocatch, “identity fraud losses totaled a combined $43 billion; $23 billion from scam losses and $20 billion from traditional methods of identity fraud.”
How do you avoid being swindled? Raj Dasgupta, Senior Director of BioCatch, suggests:
- Don’t ever rush a payment, especially on social media. 22% of respondents in a recent report shared they frequently made purchases via various social media marketplaces, making them vulnerable to scams. Be wary of any account or user trying to rush you into making a payment, and always double check that you are buying from a verified seller. Urgency is almost always a red flag!
- Verify URLs and domain addressed. Criminals are currently hyper-focused on the e-commerce channel, with 28% of scam victims experiencing fraud through e-commerce. These scammers will make websites that look exactly like the real ones, but with a slightly different URL (ex: Targett.com vs. Target.com).
- Always be wary of any deal that appears too good to be true before entering any personal information. Fraudsters tend to trick consumers into visiting websites through online ads, promising huge sales and discounts to “create an account” with all their personal information. Once created, the scammers will then use their information to open bank accounts to launder money, take out loans and credit products that damage their victim’s credit without them being aware of it.
- Be cautious before purchasing from an individual. With Facebook marketplace scams on the rise, it is vital for consumers to be extra-cautious while making any payment, particularly via faster payment methods like Zelle®, to people who they don’t personally know or have seen in person. If somebody is selling something online or on social media, the buyer needs to make sure it is a reputed, well-known platform before they ever send over any money.
If something is unsolicited or just looks sketchy, it probably is, so be vigilant. Taking your time will save you from being swindled.
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