Remember the Nigerian Prince who tried to scam everyone on the internet? You’d get an email or text message from a “prince,” saying that they needed a place to store some cash. They’d ask for your banking details so they could send the money to you for safekeeping. Anyone who fell for the scam would later find that their bank accounts had been drained.
Since the heyday of this legendary scam, online fraud has gotten more sophisticated and harder to detect. Statistics also show that it’s on the grow in Canada: The Canadian Anti-Fraud Centre reported that Canadian individuals and businesses lost $379 million to scams in 2021, up 130% from 2020. Keep reading as we go over the most common online scams and how you can protect yourself.
Main Types of Scams
Phishing: The victim gets an email that looks like it’s from a recognized company or government agency. The email includes a link to a web page that asks for personal information such as a social insurance number, account password, or credit card number.
Spearfishing: Similar to phishing but more individualized. The fraudster collects information about a trusted person or organization. This information might include the language they use in communications, their relationship with the victim, and so on. The fraudster then sends the victim an email that sounds like it comes from the trusted person and tells them to send a payment to a fake vendor, make a donation (in the case of a charity), or supply financial information.
Emergency/Grandparent Scams: The scammer contacts a family member claiming that their grandchild or another close relative needs help because they’ve been in an accident, been arrested, or need money for some other reason. The fraudster then collects the money and disappears.
Extortion: The fraudster tells the victim that they owe money to a government agency, that their social insurance number has been blocked, or that a package is being held at the border until an import fee is paid. They ask the victim for money to resolve the problem.
Investment Scams: A person claiming to be a friend, family member, or other trusted individual offers to invest funds for the victim. Increasingly, these investments are in fake cryptocurrency.
Catfishing: In this variation on some of the scams already covered, the fraudster pretends to be someone they’re not and tricks the victim into a romantic relationship. After gaining the victim’s trust, they ask them for a loan or use their personal information to defraud them.
How to protect yourself
Recognizing scams is the best way to keep them from happening to you. Here are the top tips for spotting fraud:
- Schedule time each month to update yourself on new scams.
- Be skeptical: If it seems too good to be true, it probably is.
- When someone you don’t know well asks you to do something right away, slow down and evaluate!
- Contact that person directly if a friend or trusted person asks you to do something over email or text. The same goes for banks and government agencies: hang up and call a verified number.
- Set up multifactor authentication for all your online accounts, make sure your computer protection software is updated, and change your passwords often.
- Never give out personal information to someone you don’t trust.
- Be careful about what you post on social media: any personal information could be used to trick you into thinking the scammer is an acquaintance. Some information like your date of birth could also be used to steal your identity.
- Research any companies you’re considering investing in.
So you’ve been scammed—what do you do now?
First, don’t be embarrassed. Online scams can happen to anyone and have happened to many smart, savvy people. Contact your financial institution or credit card company right away to see if you should change your accounts or cancel your cards. Next, report the fraud to the police. People are often reluctant to do this, but if there’s a chance of recovering your losses in the future, it’ll be easier if you have a police report in hand.
At Star Quality Private Investigations, we’ve worked with many victims of scams, both offline and online, and we’ve also been instrumental in preventing fraud. If you’re worried about an offer you’ve gotten or a new person you’ve met, or you’ve already been defrauded, reach out to us. Using our computer forensics skills, surveillance methods, and information-gathering techniques, we will root out any bad actors trying to scam their way into your life. If there’s a possibility of recovering your funds or taking legal action against the scammer, we’ll collect the evidence you need to track them down and take them to court. Be confident in your decisions and investments by partnering with us for your online safety!