How to Protect Yourself Against Online Scams: Five Tips for Outsmarting Scammers
Online scams are everywhere. According to the Federal Trade Commission (FTC), consumer losses from fraud jumped 70% over the previous year to reach $5.8 billion in 2021. Online fraud accounts for a large portion of that number. Data breaches, hacked passwords, hacked social media, unauthorized money transfers, love scams, and identity theft represent some of the most common online scams the average person can easily fall prey to when guards are down. Is giving up the Internet the only way to avoid digital scammers? Not at all. While risks are everywhere, the average person can stave off online scammers without logging off forever. Take a look at five ways to protect yourself against online scams.
1. Check Your Credit Report
Many victims of online fraud aren't even aware that accounts have been opened under their names. The best way to get an overview of all credit activity is to check your credit report through Equifax, Experian, or TransUnion. This fraud-protection step doesn't have to cost you a dime because every person is entitled to a free credit report every 12 months from each of the three major reporting companies.
2. Take Advantage of Opportunities to Fortify Your Password Security
Do you do a fair bit of shopping online? Most online retailers build password safety into their checkout systems. The trick is that you have to actually enable the right settings to take advantage of it. If you notice that a retailer is offering dual-factor authentication, jump at the chance to utilize it. This feature allows you to receive a unique code via text or email that must be entered before you can access your account. Many banks, financial institutions, and service providers that accept payments online offer dual-factor authentication. Most people glaze over this feature because they see it as an "extra step." Be the one that understands its value instead!
3. Do Detective Work Before Buying From an Unfamiliar Company
Are you about to purchase something from an online retailer you've never used before? Many people get lured in by online retailers offering "unbelievable" deals. However, even retailers that appear to be offering "normal" prices can still be fake. Start with some detective work before you enter your credit card information. Simply search the name of the company in conjunction with the word "scam" to uncover any poor reviews or warnings from other customers. This can save you from the headaches of sharing your payment information with a retailer that's not what it claims to be. It's also smart to dig around the retailer's website to do some vetting. Is there a refund policy? Does the company post a physical address and phone number? These are the questions to ask to determine if a business is legitimate.
4. Be Skeptical About Hiring Managers Wanting "Too Much Information"
Unfortunately, some scammers target people looking for jobs online. There are some classic signs that a job offer is really a scam. First, scammers usually advertise vague job descriptions with "flexible hours" when trying to lure in victims. Any job application that asks for a Social Security number, your bank account information, or payment for training supplies is a red flag. Scammers will use this information to steal from you before disappearing into the night. In some cases, scammers will actually send their victims "paychecks" to lure them into having a false sense of security. The scammers will then claim that they need some of the money back because they accidentally overpaid. Once the victim sends the money, they are left with a "bounced check" from the fake employer.
5. Don't Believe Sweepstakes Emails
"You've just won $500,000 dollars!" Who wouldn't get excited after seeing this subject line in their inbox? Many scammers use fake lottery or sweepstakes prizes to extract money from their victims. They'll claim that you "just need to pay the taxes and fees" on your prize before you can collect it. Unfortunately, many scammers are also using fake government loans and credits to scam their victims. If you have a reason to believe that a sweepstake or government payment is real, always confirm it with the appropriate agency before providing any personal information.
You Can Outsmart the Scammers
There's a new scam brewing every day. Scammers and hackers are counting on the fact that most people are too busy to put up the right safeguards. While scammers are savvy, online users who build up digital fortresses around all of their online activity are savvier. The big takeaway when it comes to protecting yourself and or your business against online scams is to be skeptical, pay wisely, and closely monitor your personal accounts for signs of unauthorized activity. Contact us, and we can help you develop a cybersecurity system that is right for your business.