Other Types of Scams
When we think of fraud today, the terms ‘forex scam’, ‘broker scam’, or ‘bitcoin scam’ come to mind. However, the reality is that the total number of other types of scams is larger. Although many of the scams mentioned below are perpetrated online, some are still done through phone or even snail mail.
Since the media and online conversation is focused on staying safe from forex and crypto scams, people often forget to use the same level of caution with other online and offline activities. For instance, we may be off our guard when someone calls us claiming to be from a government office, and asks us for sensitive information.
It’s important to be aware of the types of scams idenetified below and to take precautions. Assume that anyone who texts or calls may be an imposter and always validate and check their identity. Avoid giving sensitive information over the phone.
Beware of any links and downloads. The best thing you can do is to take the time and do some research. Never allow yourself to be pressured to give data or make a purchase right away. It can always wait a few minutes until you check who you’re dealing with.
If you’ve been told that you’ve won a prize, your first reaction may be excitement. However, keep your wits about you. Think carefully whether you’ve entered a sweepstakes. If you haven’t, then you haven’t won the sweepstakes.
Perhaps the scammer will claim you are entitled to a free gift because you purchased something. Remember that it is most likely a scammer who hacked your transactions and found out your bought something. Ask for validation of some kind.
The trick of the whole thing, of course, is when they ask you for some kind of advance fee. Understand that no giveaway will ask you for these fees. They will deduct them from your winnings.
PayPal, for instance, doesn’t ask you to pay an advance fee to receive money. They deduct it from the total amount sent. There is no reason why legitimate sweepstakes or company can’t do the same.
This is one of the cruelest forms of fraud. Criminals often target the elderly who may not have the technical sophistication to spot benefits scams. They may call them and ask them for validation and info before they can collect social security. The scammer may even claim they have a debt and say their social security is held up until they pay it. With the information, the scammer robs them of social security payments or other benefits.
There are at least two types of loan scams. Both types target desperate people who are in debt and offer a quick loan. Anyone who says that bad credit doesn’t matter is probably lying. Bad credit always matters when applying for a loan. Although you can get a loan with bad credit, rates are usually higher. However, loan scammers won’t tell you this.
One type of loan scam involves charging a fee for ‘finding’ a loan. Once the target pays a fee, the scammer either disappears or at least makes an excuse about not finding them a loan because of their bad credit.
Another type of loan scam is actually debt collection. Someone may have hacked your information and discovered you have a debt. They will then pretend to be a debt collection agency or bank and will threaten to garnish your wages, put a lien on your bank account, or come over and take your possessions if you don’t pay immediately.
Debt collectors always give a certain amount of time, for instance, 10 days or a month. Check and confirm that there is a debt collection agency after you. Often these are scams.
Phishing scams are basically any kind of scheme to get information from someone without their knowledge. You may receive an email or text claiming to be from a payment platform asking to have an account confirmed. They may be from a government agency demanding information. Don’t give away sensitive information without checking the request is genuine.
Like debt collection scams, someone may contact you claiming to be from the ATO. They may say you have a tax debt and may end up in jail. This is to pressure you to pay quickly. Again, confirm this comes from the ATO and you will most likely find it’s fake.
It’s easy to compromise your data and devices with just one click or download. Before buying software or apps, be careful and check that you are obtaining them from a legitimate site. However, also be aware that just because something is downloaded from an App store can still be fraudulent. Do the research and due diligence before getting new apps and software.
How to Avoid Scams
- If someone is asking for sensitive information, verify that the request is genuine and give the data through a safe method, for instance, a secure website.
- Avoid clicking on a link or downloading something if you haven’t verified the source.
- Be aware that you could be speaking, texting or emailing an imposter – check the email address
- If you didn’t enter a sweepstakes, you haven’t won anything. Period.
- If you have won something or have been awarded benefits, no one will ask you to pay an advance fee. If there is a fee, it will be subtracted from the amount that is sent.
- If someone claims to be a debt collector or from the ATO and threatens extreme action against you, don’t give them any information. Take a deep breath and confirm with the organisation through an additional phone call or checking a website.
- Buy apps and software only through legitimate sites and app stores. Always research before you click or download.
- Install high-quality anti-virus and spam detection software.
Have You Lost Money to a Scam?
Talk to Us?
Fundrecovery Australia professionals are the people to contact if you suspect you’re dealing with a scam broker or another type of fraud. We have the expertise and the technical solutions to unmask information about scams. We will launch an investigation and create a report that will boost your claim and assist you with fund recovery.
