The Rise in Internet Scams with the use of AI Highlights an Increasing Need for Vigilance
In recent years, the prevalence of internet scams has surged, posing significant threats to individuals and businesses alike. Unfortunately this is something we see in our field all too often. As digital technology advances and more of our daily activities move online, scammers are employing increasingly sophisticated tactics to exploit vulnerabilities. Understanding common scams and knowing what to watch out for can help protect against falling victim to these schemes.
The Growing Threat
The Federal Trade Commission (FTC) reported that Americans lost nearly $8.8 billion to internet scams in 2022, a significant increase from previous years. This rise is attributed to a combination of factors, including the increasing amount of time people spend online, the growing sophistication of scam tactics, and the economic impact of the COVID-19 pandemic, which has created new opportunities for fraudsters. AI has increased the ability of scammers making more legitimate/believable looking scams, and 5 countries have made an industry out of scamming: Nigeria, China, North Korea, Russia, and Mexico (the Cartel).
Common Internet Scams
Phishing Scams: Phishing remains one of the most widespread types of internet fraud. Scammers send emails or messages that appear to be from legitimate sources, such as banks or popular websites, to trick individuals into providing personal information like passwords or credit card numbers. These messages often contain links to fake websites designed to capture sensitive data.
Tech Support Scams: Fraudsters pose as tech support representatives from well-known companies, claiming that a virus or malware has been detected on the victim’s device. They convince the victim to grant remote access to their computer, ostensibly to fix the problem, but instead steal personal information or install harmful software.
Online Shopping Scams: With the rise of e-commerce, online shopping scams have become increasingly common. Scammers set up fake websites or listings on legitimate platforms, offering high-demand items at low prices. Once the payment is made, the goods are never delivered, and the scammer disappears with the money.
Catfishing/Romance Scams: These scams typically occur on dating websites or social media platforms. Scammers create fake profiles to establish romantic relationships with their targets. Once trust is built, they fabricate a crisis and ask for money, often disappearing once the funds are transferred.
Investment Scams: Fraudulent investment opportunities, particularly in cryptocurrencies, have seen a sharp rise. Scammers promise high returns with little risk to lure in investors, who end up losing their money. Ponzi schemes, where returns are paid to earlier investors using the capital of new investors, are also prevalent.
Red Flags to Watch Out For
Unsolicited Contact: Be wary of unexpected emails, messages, or phone calls from unfamiliar sources, especially those requesting personal information or payment.
Too Good to Be True Offers: If an offer seems too good to be true, it probably is. Be cautious of deals that promise substantial returns with minimal effort or investment.
Urgent Requests: Scammers often create a sense of urgency to pressure victims into making hasty decisions. Be suspicious of any communication that demands immediate action or payment.
Unusual Payment Methods: Legitimate businesses rarely request payment through unconventional methods, such as gift cards, wire transfers, or cryptocurrencies.
Grammar and Spelling Errors: Many scam messages contain noticeable grammar and spelling mistakes, which can be a red flag.
Email Addresses: We cannot reiterate enough that the biggest indicator of a scam email purporting to be from a legitimate person or business is the email address they use!
Protective Measures
To safeguard against internet scams, individuals should adopt several protective measures:
Enable Two-Factor Authentication (2FA): Adding an extra layer of security can help protect online accounts even if passwords are compromised.
Regularly Update Software: Keeping software up to date ensures that security vulnerabilities are patched.
Use Strong, Unique Passwords: Avoid reusing passwords across multiple sites and use complex passwords that are hard to guess.
Verify Before You Trust: Always verify the authenticity of unsolicited communications by contacting the company or individual through known and trusted channels.
Educate Yourself and Others: Stay informed about the latest scams and share information with friends and family to help them stay safe online.
Never Send Money Online Without VERIFYING All Details of the Transaction. Don’t ever send money to anyone without doing your due diligence.
Trust Your Gut and Beware of any Potential Red Flags: If it seems suspicious, it likely is!
As internet scams become more sophisticated, vigilance and education are key to protecting oneself from falling victim. By recognizing common tactics and red flags, individuals can better navigate the digital landscape and avoid the costly consequences of online fraud.