Diamond Shield Management Korea Report: How To Avoid These Scams In 2022
Just like 2020, 2021 was a bust year for scammers. With so many people still working remotely, online scams skyrocketed. Internet scams have been the most prolific. However, con artists didn’t steer clear from other strategies either. Door-to-door sales, donation, or text scams made the headlines in 2021.
Moreover, many such scams are likely to make news this year too. Fraudsters are relentless and adaptive. They constantly find new ways to deceit people. Often, they reinvent old but highly effective tricks. The best way to avoid them is to stay informed.
So, here are some of the most common 2021 scams. We’ll probably see them in 2022 too.
Major Online Scams
E-commerce Scams
According to the BBB, these were the highest-ranking scams in 2021. Furthermore, they were in the top slot for the second consecutive year. The explanation is easy to grasp. The pandemic changed the face of shopping. Online purchases were mostly popular among youngsters before 2021. However, the pandemic brought all age groups to the eCommerce carousel.
People stayed at home for significant periods due to Covid-19 restrictions. Thus, online sales skyrocketed. So did online purchase scams. These took myriad different forms, including:
- Fake websites
- Copycat websites impersonating famous retailers
- Counterfeit products
- Fake offers
- Fake trials
- Defective products customers couldn’t return
Phishing Scams
Phishing is a constant threat for online users. Yet, this is a danger that’s not likely to go away in 2022. Phishing goes hand in hand with identity theft. And there are plenty of reasons why scammers want personal data. Selling it on the dark web is one of them.
Personal information is highly valued on the dark web. It can include:
- Names
- Addresses
- Social security numbers
- Bank account numbers
Fraudsters need this information to impersonate honest citizens. And get away with crime. To avoid such scams, exercise caution online. Phishing usually involves a subscription. Therefore, be cautious when:
- Filling in online forms
- Subscribing to a company’s trial or newsletter
- Registering as a member on a new website
Most phishing scams take place on fake websites. But can you distinguish them from real ones? Yes. By looking for red flags such as:
- Frequent spelling errors
- Unnatural wording
- Missing terms and conditions section
- Missing privacy policy
- Limited contact details (usually just email addresses)
- Email addresses that don’t include the company’s name
- No physical company address
- URL names that with spelling mistakes or missing letters
Identity Theft Scams
Account Takeover Scams
This is a type of identity theft. Hackers hijack another person’s account. The purpose is to impersonate them. The scam can take myriad forms. Sometimes, scammers access people’s e-Commerce accounts. Amazon is the most sought-after platform.
First, these individuals steal someone’s login credentials. Then, they make purchases on that person’s behalf.
However, other account takeover scams are more severe. These involve bank accounts. Scammers are often after banking data. Bank account numbers or internet banking credentials are common examples. Then, with this information, fraudsters transfer money from the victims’ accounts into theirs.
Fraudulent Loan Accounts
These are just as dangerous as bank account takeovers. A hacker can get hold of your personal information. Afterward, they can open accounts in your name. With your identity, they bypass online verification steps. Thus, they can easily apply for a bank loan, for example.
After a while, you start getting notifications from lenders. Why? Because your impersonators made loans. Therefore, you now have debts. And lenders expect their money back. To avoid such critical situations, be vigilant.
Avoid sharing sensitive data with unknown people. Also, check websites’ authenticity. Especially when you shop online. Many phishing scams happen on copycat eCommerce websites.
Synthetic Identity Scams
These are the fastest-growing online frauds in the US. As the company McKinsey suggests. Synthetic identity scams are also a form of identity theft. But they don’t rely on impersonation alone. Scammers need a series of personal details. They can quickly get it from the dark web. Here, they can buy:
- Addresses
- Names
- Contact information
- Social security numbers
- Driver license numbers
Then, they combine this information with fictitious one. Thus, they create user profiles. Afterward, they can open accounts. For instance, they can open a debit account. They can use your address but a fake name for this.
Synthetic identity fraud may be less dangerous for consumers. In the end, there is no victim. This is possible because scammers craft new identities. However, these frauds are highly detrimental to businesses. They are hard to spot. Moreover, they can lead to substantial financial losses.
The Bottom Line
2022 will probably be as challenging as 2021. At least in terms of online fraud prevention. Scams, especially online ones, are hard to track and eliminate. Stay cautious. It’s every consumer’s responsibility to be vigilant. Therefore, think twice before handing over personal information.
Post By Diamond Shield Management Korea.
