According to the FBI’s internet crime records, at least 422 million people were impacted by cybercrimes in 2022, while the annual cost of cybercrimes is projected to top 10 trillion dollars by 2025.
Given the growing threat, the importance of educating and protecting yourself against fraud, identity theft, and online scams – in both your personal and professional online activity – can’t be overstated. Let’s take a look at common types of scams, how to spot them, and what you can do to avoid falling victim to them.
Phishing attack
It’s estimated that 80% of reported cybercrimes are attributed to phishing attacks. In a phishing attack, the criminal’s goal is to steal money, gain access to sensitive data, or to install malware on the victim’s device. While there are different categories of phishing attacks, this type of cybercrime typically involves a fraudulent email or text message solicitation with the perpetrator masquerading as a legitimate business or reputable person as well as a link to malware. To protect yourself from phishing:
- Pay attention to the details. When you receive an email that appears to be from a reputable brand or business at first glance – be sure to check the sender’s email address – especially the domain name. If one or more characters are off in the domain name, it’s a telltale sign it’s a phishing email. Additionally, phishing emails typically claim to be contacting you about:
- an invoice you don’t recognize
- a problem with your account or your payment information (often with a link to make a payment)
- a suspicious activity or log-in attempt
- a coupon or discount offer
- confirming personal or financial information
- your eligibility to register for a government refund
- If you’re unsure about a link – don’t click it! Never click a link from an unverified sender.
- Make sure your security software is up-to-date. Set your computer and mobile phone software to update automatically– these updates could give you critical protection against security threats.
- Use multi-factor authentication (MFA). Some accounts offer extra security by requiring two or more credentials to log in to your account. This is called multi-factor authentication. The extra credentials you need to log in to your account fall into three categories.
- Back-up your data using an external hard drive or cloud.
Business email compromise (BEC)
Business email compromise (BEC) scams target businesses by tricking employees into transferring funds or sharing sensitive information under the guise of legitimate requests from other persons or departments within the company. To protect yourself and your business from BEC scams:
- Implement multi-factor authentication (MFA). Require MFA for accessing company accounts and sensitive information to add an extra layer of security.
- Verify requests. Independently verify any financial or sensitive information requests made via email, especially if they seem urgent or unusual.
- Train employees. Regularly educate your employees about BEC scams and teach them to recognize suspicious emails or requests.
Money mule scam
Money mule scams typically involve fraudsters recruiting individuals to facilitate illegal money transactions. In this type of scam, the victim is used as an intermediary to move funds which may have been obtained by illegally obtained through criminal activities. To avoid falling for a money mule scam:
- Stay informed: Be wary of job offers that promise easy money for minimal effort, especially if they involve transferring funds internationally.
- Research employers: If you’ve received a job offer, make sure you do your due diligence on the company. Scan their website for red flags, read review sites, and make sure their contact details check out.
- Never share personal information. Never provide your bank account details, social security number, or other sensitive information to unknown parties.
- Trust your gut. If an opportunity sounds too good to be true, it probably is. Trust your instincts and avoid getting involved in suspicious financial activities.
Impersonation scam
Impersonation scams involve criminals pretending to be someone you trust – such as a family member, friend, coworker, or even a government official – in order to manipulate you into providing personal information or money. To protect yourself against impersonation scams:
- Verify requests. Before you act on any request for money or personal information, verify the person’s identity through a separate communication channel. For example, if they emailed you or reached out on social media, try calling or texting that contact.
- Don’t share sensitive information. If you’re asked to provide personal or financial information via email, social media, or text message, use caution.
- Educate your close contacts. Teach your friends and family about the dangers of impersonation scams, especially those targeting vulnerable individuals.
Online purchase scam
Oftentimes, online purchase scams involve fictitious websites or sellers offering products at extremely low prices. Again, if something seems too good to be true – it probably is. Typically, the scammers will take your money without delivering the promised goods. To avoid online purchase scams:
- Shop on reputable websites. Still to well-known online marketplaces and retailers with a trusted track record.
- Check website security. Look for https:// in the website URL and a padlock icon in the address bar, indicating a secure connection.
- Read reviews. Before you make a purchase, read reviews from other buyers to ensure the legitimacy of the seller and the product.
- Use secure payments methods. Whenever possible, use secure payment methods like a credit card or PayPal, which offer some level of buyer protection.
Staying vigilant
Unfortunately, the convenience and connectivity offered by the internet comes hand-in-hand with the exposure to scams and fraud. Laurel Road will never ask you to share personal identifying information such as your Social Security Number via email. Use the tips above to educate yourself and continue to stay vigilant about protecting yourself from scams, fraud, and identity theft in your online life.
