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Common Scams and How To Protect Yourself

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common scams

The internet has transformed our world, but it also comes with heightened risks like online scams. From phishing scams to offers that are too good to be true, the online environment has its share of shady operators. Learn about common online scams and how to avoid them.

THE ADVANCED FEE SCAM

Have you received an email promising you a large sum of money in exchange for a small upfront fee? This is the advanced fee scam. The scammer claims you’ve won a prize or inherited money, but there’s a catch: you need to pay a fee to unlock the funds. Unfortunately, the payout promised almost never exists, and recovering your money is nearly impossible. Ignore these emails and remember, if it sounds too good to be true, it probably is.

GUARANTEED ACCEPTANCE FOR A CREDIT CARD OR LOAN

The guaranteed acceptance scam promises a guaranteed credit card or personal loan approval without asking much financial information, but requires an upfront fee, club membership or other payment. Once you pay, you’ll never hear from the scammer again and your credit card or loan will never materialize. This scam targets job seekers, students and people with bad credit. Always be cautious of unsolicited offers and remember that legitimate lenders require detailed financial information and identity verification. Don’t disclose sensitive information over the phone to unsolicited callers.

LOTTERY SCAMS

Lottery scam emails promise you’ve won a foreign lottery and require an upfront fee to receive the funds. After paying the fee, you won’t receive any winnings. Remember, every lottery requires you to buy a ticket to win. Special offers to buy guaranteed winning numbers are also scams. Always buy lottery tickets through official channels to avoid scams.

PHISHING

The phishing scam is a sophisticated type of fraud that can be perpetrated through a fake website and email address. Typically, the scam begins with an email that appears to be from your bank, online broker, or PayPal. The email usually tries to scare you into thinking that your account security has been compromised and that you must update your details immediately.

Once you click on the link in the email, you’ll be directed to a fake website that looks similar to the official company website. After you enter your details, the scammer will use them to access your real account and drain every last cent. It’s important to note that your bank, broker, or PayPal will never email you asking you to confirm your account details. If you do receive a suspicious email, first verify the official email address, and then give them a call to confirm that it was really sent from a legitimate person. Finally, if you’ve fallen victim to identity theft, report it at identitytheft.gov.

OVERPAYMENT SCAM

Watch out for the overpayment scam if you run an online store or have posted items for sale on sites like Craigslist. Scammers will send you money first and then claim they overpaid by mistake, asking you to refund the difference through an untraceable payment method. Once you make the payment, you’ll realize their original payment was fake. This scam doesn’t work on eBay or Amazon as the exact amount due is charged at checkout, making it impossible to overpay. Be suspicious of any buyer who claims to have overpaid.

CAREER OPPORTUNITIES

Job seekers are often targeted by scammers who offer high-paying jobs for a fee. Be wary of offers that require very few skills, such as envelope stuffing or assembling low-quality products. The career opportunities scam typically requires an upfront fee, which may be called a finders’ fee or membership fee. Once paid, you’ll realize the jobs don’t exist or have already been filled. Remember, legitimate companies typically pay recruitment fees, not job seekers. Always be cautious when asked to pay upfront.

CHARITABLE DONATIONS

The spirit of giving is a beautiful part of human nature, and millions of people are in need of benefit from charitable donations each year.

Unfortunately, scammers are extremely active in the online charity space. Accordingly, you’ll always want to verify before you donate.

  • If you receive an email asking for charitable donations, check the name of the charity carefully. It could be a scam.
  • You can check the legitimacy of a charity through give.org, the Better Business Bureau’s Wise Giving website. Simply enter the name of the charity to find out if it’s a scam or not.
  • Be especially careful of emails that feature “tearjerker” stories about poor children or families in developing countries and ask you to donate to anonymous persons.

To ensure that your charitable donations reach people who are truly in need, it’s best to donate to well-known charities with long track records of transparently supporting successful projects.

FREE VACATIONS

Everyone loves a relaxing vacation and getting one for free sounds like a dream come true. Unfortunately, chances are that an offer like this could be a scam.

  • The free vacation scam always starts by giving you exciting news – you’ve won a free trip! However, to claim it, you’ll need to join a club or pay a fee.
  • Once you’ve paid, not only will you never receive the free trip, but you’ll also have given your credit card information to the scammer which could result in serious financial harm.
  • In the rare case where the scam does provide a free trip, it will usually involve extra fees, cheap flights and substandard accommodation – you could even arrive at your hotel only to find that your reservation was fake or cancelled at the last minute.

If you’d like a chance to win a free vacation, the best strategy is to enter a competition hosted by a well-known airline, booking site or tourism business. It’s always better to be safe than sorry.

MAKE MONEY AT HOME USING YOUR COMPUTER SCHEMES

The final scam is probably the sneakiest of all. In this age of freelance work and remote jobs, there’s nothing unusual about making money at home using a computer.
Scammers are taking advantage of this to hide their fraudulent schemes in plain sight.

  • The work from home scam usually involves something like posting reviews on unknown websites, sending out mass emails to unknown people, or other simple tasks.
  • You’ll be promised big earnings – usually thousands of dollars per month – for doing menial tasks. This is a big red flag.
  • Almost all of these scams will ask you to pay a signup fee or a training fee before you start working. Once you’ve paid this, you’ll realize that your earnings are tiny or nonexistent.

To avoid being scammed like this, it’s best to always seek online work through legitimate companies or freelance sites.

STAY SAFE, STAY LEGITIMATE, AND NEVER PAY UPFRONT

Online scams are always evolving, but they always feature common traits; an offer that’s too good to be true, a time limit that’s going to expire soon, and an upfront payment.
By avoiding online offers that exhibit these characteristics and sticking to well-known websites and organizations, you’ll be able to stay safe online and enjoy the great entertainment and career opportunities that the internet and social media have to offer

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