Scammers are getting increasingly sophisticated every day. With new scams popping up all the time, it's more important than ever to be vigilant and know how to avoid being scammed. Let’s look at some of the most recent scams that you should be aware of and what you can do to protect your personal information.
Cryptocurrency Scams
Cryptocurrency scams are a relatively new form of financial fraud that has grown in popularity in recent years. They take advantage of the hype surrounding digital currencies such as Bitcoin, Ethereum, and others, and often involve promises of high returns for minimal investment. One common type of cryptocurrency scam is the fake exchange scam. These involve creating a fake cryptocurrency exchange website, which looks legitimate but is actually a trap designed to steal your money.
Another common cryptocurrency scam is the ICO (Initial Coin Offering) scam. This involves creating a new digital currency, promoting it as the next big thing in cryptocurrency, and then soliciting investments from unsuspecting investors. Unfortunately, the promised returns never materialize, and the investors are left with worthless digital tokens.
To protect yourself from cryptocurrency scams, it's important to do your research before investing in any new digital currency or cryptocurrency exchange. Always look for reputable companies with a history of success and be wary of any investment opportunities that promise unrealistically high returns.
Peer-to-Peer Payment App Scams
Peer-to-peer payment apps like Venmo, Zelle, and PayPal have become increasingly popular in recent years due to their convenience. Unfortunately, scammers have found ways to take advantage of these apps and defraud users. One common scam involves the seller sending a request for payment to the buyer via the app, but then never delivering the promised goods or services.
Another scam involves the scammer creating a fake profile and then posing as a seller. They will send a payment request, and the buyer will pay, but then the scammer will disappear with the money. To protect yourself from these scams, it’s important to only use trusted payment apps and to only send money to people you know and trust. If you are buying something from a stranger, make sure to do your research and read reviews to ensure they are a legitimate seller.
Student Loan Forgiveness Scams
One of the latest scams involves promising student loan forgiveness. The way this scam works is that the scammers will contact an individual, often by email or phone, claiming that they can provide student loan forgiveness or reduced payments. They will request an upfront fee, typically a few hundred dollars, to process the application. The scammers may even claim to be affiliated with the Department of Education, making it seem like a legitimate offer. However, in reality, there is no such thing as a student loan forgiveness program that requires an upfront fee.
Legitimate loan forgiveness programs are run by the government and are free to apply for. Always verify the company’s legitimacy by researching online, checking with the Better Business Bureau, or contacting the Department of Education directly.
Social Media Scams
Here are some common social media scams you should be aware of:
- Fake Profiles: Scammers create fake profiles with stolen pictures to gain your trust and befriend you. Once they gain your trust, they ask for money or sensitive information.
- Clickbait Scams: These scams lure you into clicking on a link that takes you to a fraudulent website or a site that installs malware on your device. This could result in identity theft or data breaches.
- Fake Promotions: These scams claim to offer free or discounted products in exchange for your personal information, like your name, address, and credit card details. Once you provide this information, scammers use it for identity theft or to make fraudulent purchases.
Protect yourself by always verifying the identity of the person before accepting a friend request. Be wary of clicking on links from unknown sources or those with a suspicious email/username. Do not share your personal information or login credentials with anyone on social media, and be cautious of unsolicited messages, even if they come from people you know.
Charity Scams
These types of scams usually involve scammers posing as legitimate charities and requesting donations from unsuspecting individuals. One common way scammers try to trick people is by creating fake charity websites or using social media platforms to solicit donations. They may use photos or stories of real charity work to make their requests seem more genuine.
Another tactic scammers use is to impersonate well-known charities, such as the Red Cross or UNICEF. They may also create fake fundraising events or charity drives to convince people to donate money.
To avoid falling victim to a charity scam, it's important to do your research before making any donations. Look for information about the charity, such as their registration and tax status, and verify their legitimacy by checking with a charity watchdog group.
Gift Card Scams
The most common gift card scam involves the scammer asking the victim to buy gift cards and then providing the scammer with the card number and PIN. The scammer may claim that the victim owes money or is in trouble with the law, and they need the gift cards to settle the issue.
Another gift card scam is the “gift card exchange” scam, where the scammer will offer to buy the victim’s gift card for less than its value. The scammer may say that they need the gift card quickly or that they are buying it for someone else.
To avoid gift card scams, never provide gift card information to anyone who asks for it over the phone or through email. Be cautious of unsolicited requests for gift cards, especially if they are asking for a specific brand or denomination. Only buy gift cards from trusted retailers and be wary of offers that seem too good to be true.
Stay Aware of These Latest Scams and Stay Safe
It's important to stay on top of the latest scams and cyber threats so you can protect yourself and your personal information from criminals. By understanding what kinds of scams are out there, you'll be better equipped to recognize them and protect yourself and your data.
If you feel that you have fallen victim to a scam:
- Contact your financial institution immediately upon suspecting or discovering a scam. Explain that your identity or personal data may have been compromised. The more information you provide, the more they can help you.
- Contact law enforcement and file a police report.
- File a complaint with the FBI’s Internet Crime Complaint Center.
- Report an identity theft incident to the Federal Trade Commission.