Watch Out for These Top Internet Scams

Internet scams are constantly evolving. The FBI documented a record of more than $10.2 billion in losses due to internet crimes in 2022. Right now, con artists around the world are likely targeting a computer or mobile device near you. Here's a look at the most common internet scams and what you can do to safeguard your personal information and wallet.

Disaster Relief Scams

When disaster strikes so do fraudsters, whether it's a pandemic or weather-related. Hiding behind the guise of an actual aid organization, scammers typically use a tragedy or natural disaster to con you out of your money. By thinking you’re donating to an emergency relief fund, you unwittingly provide credit card or other e-payment information.

• How to Avoid Them: Only give to established, legitimate organizations. Visit GuideStar or Charity Navigator to verify the validity of any charitable organization you are considering supporting before you donate.

Phishing Scams

You receive an email from a seemingly familiar enterprise that you deem legitimate, such as your bank, university, or retailer you frequent. The message directs you to a site—usually to verify personal information such as email addresses and passwords—that then steals your information and exposes your computer to attack by scammers.

Phishing scams are some of the most common attacks on consumers. According to the FBI, 300,497 people fell victim to phishing scams in 2022. Collectively, they lost $52.1 million, or about $173 each.

According to the Federal Trade Commission (FTC), phishing emails and text messages frequently tell stories to trick people into clicking on a link or opening an attachment. Phishing attempts may:

• Say they've noticed suspicious activity or log-in attempts on your account
• Claim there's a problem with your account or payment information
• Say you need to confirm or update personal information
• Include a fake invoice
• Ask you to click on a link to make a payment
• Claim you're eligible to sign up for a government refund
• Offer a coupon for free goods or services
  

• How to Avoid Them: Never click the links provided in emails you can't independently confirm. Doing so will make your computer and personal information vulnerable to viruses and malware. Although the sender may seem legitimate, which is exactly what the scammer wants you to believe, no reputable institution will ask for your password or other key personal information online.

Grandparent Scams

With grandparent scams, a fraudster poses as a panicked grandchild who needs cash right away for some emergency—to get out of jail, to leave a foreign country, or to pay a hospital bill. The COVID-19 pandemic made it even easier to sell compelling lies: "I'm in the hospital with COVID. Please send money right away."

• How to Avoid Them: Resist the urge to act immediately. Scammers pull at your heartstrings and rely on you to respond quickly—before you've had a chance to think things through. Verify the caller's identity and ask questions that a stranger wouldn't be able to answer. Confirm the story with other family members or friends, even if (or especially if) the caller says to keep it a secret. And never send cash, gift cards, or money transfers.
  

Tech Support Scams

With this scam, you receive a phone call, email, or pop-up warning indicating your computer is infected. The scammer then:

• Prompts you to download an application that allows them to control your computer remotely
• Downloads an actual virus or otherwise makes you believe that something is wrong
• Tells you they can fix the problem for a fee

Another way to reach you is through search results: Tech support scammers work hard to get their websites to show up in online search results or they run their own ads. These scammers often ask you to pay using a bank wire, gift card, or money transfer app.

• How to Avoid Them: Ask yourself: How would they know anything about your computer? But if you happened to give a scammer remote access to your computer, immediately update your security software, run a thorough scan, and delete anything it identifies as a problem. And, if you shared your username and password, change those right away, too.

Fake Antivirus Software

Fake antivirus software ads and pop-ups try to make you believe your computer is infected with a virus (or dozens of them)—and that you can fix the problem by downloading their software. These ads are also called scareware. These scammers get you two ways:

1. They gain access to your credit card information.
2. They gain access to your computer. When you click the download link, you get a virus, malware, or ransomware instead of antivirus software.

• How to Avoid Them: Always be wary of ads and pop-ups that prompt you to take immediate action or ones that are hard to close. Be sure to install, update, and use real antivirus software to reduce the risk of scareware.

419 Fraud—Advance Fee Scams

Also known as the Nigerian letter scam, the 419 fraud is one of the most common scams on the internet. This is one you've likely seen in your own inbox. The advance fee scheme takes its name after the section of the Nigerian criminal code that outlaws fraud. According to the FBI, 11,264 people reported falling victim to advance fee scams in 2022. Collectively, they lost $104 million, or roughly $9,232 each.

The scammer usually claims to be a member of a wealthy Nigerian or another West African family, reaching out to you personally after the death of a loved one. They seek to relocate a large fortune out of the country for safekeeping purposes and into your bank account. The catch? You must submit small payments for fees in return for a large chunk of their cash cache.

• How to Avoid Them: You should never respond to these requests or volunteer your bank details. Any correspondence should be sent to the FBI, the U.S. Postal Inspection Service, the U.S. Secret Service, or the FTC.
  

Fake Shopping Websites and Formjacking

Thousands of fake websites offer great deals on well-known brands. These websites typically have URLs similar to the brands they try to mimic, such as Amaz0n.net. If you buy something from one of these websites, chances are you'll receive a counterfeit item in the mail or nothing at all.

Formjacking is another retail scam. This happens when a legitimate retail website is hacked, and shoppers get redirected to a fraudulent payment page where the scammer steals your personal and credit card information.

• How to Avoid Them: To avoid this scam, double-check that the URL on the payment page is the same as the website where you were shopping. Cybercriminals may change the URL very slightly. They may do this by adding or omitting a single letter from the URL. Be sure to take a close look at the URL before you enter your payment details.
  

Travel Scams

One travel scam involves social media. Scammers post enticing photos on sites like Pinterest, X platform (Twitter), and Instagram to dupe even the savviest of travelers. Upon clicking the image, which lures clicks through the promise of a free trip or plane tickets, you will be prompted to either complete a survey rife with personal information or open your computer up to secretly malicious software.

Scammers started selling phony COVID-19 travel insurance policies when travel became difficult. These policies claim to cover losses for any reason at no extra charge. Buyers found out the hard way that these policies didn't provide the protection they expected. In general, claims due to "known, foreseeable, or expected events, epidemics, government prohibitions, warnings, or travel advisories or fear of travel" are not covered by travel insurance policies.

Although some of these scams may have died down since the pandemic has been controlled, there's still a chance that they may be operating. The following table highlights some of the most common COVID-19 scams that began appearing online:

• How to Avoid Them: Make sure the social media page you’re on is an accredited account. All major airlines and travel sites link directly to their social media handles from their respective web pages. 

Pre-Approved Notice

You receive a letter or an email declaring that you have been pre-approved for either a credit card or a bank loan. Those experiencing financial strain may fall victim to this scam, which promises instant approval and appealing credit limits. The catch? You must pay an upfront fee when you sign up. While credit card companies do charge annual fees, they will never ask you to pay them when you apply.

• How to Avoid Them: Be wary of any offer that has a 100% guarantee, requires any upfront fees, or requests payments in cash, money transfers, or gift cards.

Debt Relief and Credit Repair Scams

Individuals who are down on their luck can easily fall for an email claiming to relieve their debt or repair bad credit. This scam makes the false promise to negotiate with creditors to either consolidate or settle debts or to remove negative information from your credit report.

According to the FTC, "These operations often charge cash-strapped consumers a large up-front fee, but then fail to help them settle or lower their debts—if they provide any service at all."

• How to Avoid Them: Steer clear of any debt relief company that asks for fees in advance, before it settles any debt. Likewise, avoid any company that guarantees it can eliminate or reduce your debt by X amount by X date. Research any debt relief or credit repair service you are considering. It's a good idea to check with your state's attorney general and consumer protection agency to learn about the company's reputation.

Lottery Scams

Congratulations! You’ve won the lottery or some other large amount of money! Except you haven’t. This bogus email comes to you out of the blue—usually claiming to be a part of an international sweepstakes—stressing that you’ve won big and that you just need to send over a processing fee or get in touch with someone who can process your winnings.

• How to Avoid Them: Unless you have entered some legitimate lottery, chances are you haven’t won the jackpot. When you win the lottery, you contact the appropriate retailer—not the other way around.

Fake Check or Money Transfer Scams

You list something on an auction-based website, and the winning bidder offers to pay you more than the offered purchase price via cashier’s, corporate, or personal check. Upon receiving the scammer’s counterfeit check, you are conned into sending the difference back through bank wire. Then you have to pay the bank back in full once the fake check bounces.

• How to Avoid Them: Never accept payment for more than your selling price. Additionally, you should opt for a secure form of e-payment, such as PayPal or Google Wallet, to ward off scammers.

How to Avoid Internet Scams

Now that you know some of the most common internet scams, it's important that we go over some of the main tips that can help keep you safe.

• Never give out your personal information to anyone you don't know. If you're unsure, ask questions and get details about the person's identity. No one from a bank or government agency will ever ask you for your personal or financial information over the phone or online.
• Keep your phone, computer, and digital tools secure. This includes using strong passwords that are difficult to guess. Never allow anyone remote access if you don't know them.
• Update and change your passwords regularly.
• Arm yourself with virus protection from a legitimate source.
• Do not click on links in emails or text messages, especially those that are unsolicited. Emails sent by scammers may look and seem legitimate, but look at them with a careful eye. They may contain grammatical errors and/or typos. The email address may also seem suspicious.
• If it's too good to be true, then it generally is. Giveaways, lotteries, and promises of free money are scams.
• If you receive a phone call from someone, don't engage with the caller and hang up.

If you believe you received a scam email or phone call, or if you think you've been scammed, contact your local authorities, the FTC, or the FBI and file a report.

The Bottom Line

It’s safe to assume that if anyone is asking for your bank or personal information, you’re being scammed. You should never give out personal information to anyone on the internet who contacts you directly. If you have to make a financial transaction online, make sure you’re doing so on a secure server and through a reputable site.

If you believe you’ve been scammed, immediately change all of your passwords and delete any malicious software you may have downloaded, and call your credit card company, if necessary. Contact your local law enforcement authorities to report the scam and get help with the next steps. You can also report the scam to the FBI, the FTC, the U.S. Postal Inspection Service, and your state attorney general's office.