Buzz
Shopping on the web requires diligent attention to avoid falling victim to potential email scams. © Photographer: Tyler Olson | Agency: DreamstimeMost people with an email account have probably received a message promising an unbelievable financial opportunity. Whether it’s from supposed African government officials or notifications claiming you've won a lottery you didn’t even enter, these emails often seem too good to be true — and they usually are.
Email fraud and online scams are among the top complaints of internet users today. These deceptive messages often blend real information with false promises to lure in victims, and they can put your financial security and credit rating at risk. These fraudsters might attempt to steal your money directly by obtaining your bank or credit card details, or they may target your identity to rack up charges in your name. According to Money Magazine, over 93 million personal records have been lost or stolen since February 2005.
No one is immune. In July 2007, the FBI issued a warning about a growing number of email scams where criminals posed as the FBI to pressure victims into surrendering personal information. A similar scam targeted taxpayers, appearing to come from the Internal Revenue Service, claiming they had an unclaimed tax refund.
Email fraudsters act swiftly. In November 2007, CNN reported that scammers were sending emails asking for donations to help victims of the California wildfires. Similar scams were also seen after Hurricane Katrina in 2005.
A recent report from Symantec, a provider of Internet security software, revealed that cybercriminals are shifting focus from viruses and malicious software to financial exploitation through fraud. According to the report, both government entities and private citizens in the U.S. contribute to more than half of the internet activities that could lead to identity theft.
Email scams and online fraud are widespread and costly. The FBI estimates that cybercrimes, including virus attacks, identity theft, and other types of fraud, have caused losses of $400 billion in the United States. The Internet Crime Complaint Center, a partnership between the FBI and the National White Collar Crime Center, recorded its one millionth complaint in the summer of 2007.
In this article, we will explore email scams and online fraud—how to identify them and how to safeguard yourself against them.
How to Avoid E-mail Scams
Email scams like phishing involve sending deceptive emails.
Image credit: AntiPhishing.orgEmail scams are constantly evolving as fraudsters find new ways to deceive. However, avoiding these scams and online fraud is often a matter of staying informed about the methods used by scammers. Below are several common types of email scams, along with tips to help you avoid becoming their next victim:
- Phishing: In this scam, criminals send fake emails, create fake websites, or use chat rooms and other platforms, impersonating reputable financial institutions to trick victims into sharing sensitive personal information like credit card numbers or social security details.
- Money Laundering: In this scam, criminals recruit individuals to act as 'money mules,' transferring stolen funds through their bank accounts before sending it abroad, minus a cut. These scams often start with emails like "I need your assistance," claiming to be from an overseas government official looking to move assets securely.
- Advance Fee Fraud: This scam involves a person being contacted by someone pretending to be a Nigerian official, offering a large reward for helping to hide an overpayment on a government contract. Ultimately, the victim is convinced to pay a large upfront fee to continue the deal.
- Lottery Scams: Victims are informed by email that they’ve won a large sum in a foreign lottery. To claim their prize, they’re typically asked to provide an upfront fee, or personal details like their bank account or social security numbers.
- Online Auction Scams: In this scenario, fraudsters target individuals bidding on sites like eBay or Craigslist. They contact the bidder via email to arrange a deal outside the auction platform, often requesting an upfront payment in cash.
Experts agree that the best defense against email scams and online fraud is using common sense. If something seems too good to be true, it probably is. Be cautious when you receive an email from an unfamiliar sender. Many recent email fraud attempts are highly targeted, as scammers often select individuals through various methods. These emails may include details designed to attract your attention. Don’t fall for it.
Never click on any links in such emails, as they may lead you to websites that try to infect your computer with malicious software. If someone offers you something for free, like software downloads, it’s wise to be suspicious.
Above all, NEVER share personal or sensitive information, such as your social security number, bank account details, or credit card numbers, in response to unsolicited emails.
Vincent Weafer, an internet security expert at Symantec, recommends that users take full advantage of patches provided by browser developers, which fix security vulnerabilities discovered after the software’s release, as reported by CNN.
Money Magazine spoke to several identity theft experts about how they protect themselves. The experts identified the following key steps:
- Obtaining free credit reports three times a year
- Regularly monitoring online banking and brokerage accounts
- Opting to use cash or credit cards (instead of debit cards linked to your bank account) when possible
- Instructing banks and other financial institutions not to share your personal information with third parties.
Consumers should be cautious with their social security number and avoid responding to emails or other solicitations requesting sensitive personal information. In the next section, we'll discuss how to report email scams.
How to Report E-mail Scams
The FBI monitors email scams and issues alerts.
Image credit: FBIIf you're a victim of a traditional scam, most people know what to do: File a police report with the appropriate authority if it's a criminal issue, or hire an attorney. However, Internet fraud and email scams occur in the virtual realm of Cyberspace, where it's not always easy to find a law enforcement officer. So, what should a victim do?
There are clear steps to follow when reporting email scams and Internet fraud. Several federal agencies, responding to the growing number of scams, have created divisions to receive reports and investigate these incidents. Reporting email scams benefits everyone in the online world.
The FBI, in collaboration with the National White Collar Crime Center, operates a website dedicated to online crime called the Internet Crime Complaint Center. Visitors can explore more about Internet crime, browse a "Frequently Asked Questions" section, and examine examples of email fraud and online scams. The site offers numerous tips on how to avoid specific scams and provides a link to file complaints against third parties suspected of defrauding or attempting to defraud you.
The U.S. Department of Justice also runs websites where you can report Internet fraud and email scams. These sites contain links to documents detailing how to report various types of fraud. For example, it highlights that agencies like the U.S. Secret Service, U.S. Postal Service, Bureau of Alcohol, Tobacco and Firearms, and U.S. Immigration and Customs Enforcement all contribute to investigating and prosecuting email scams and online fraud, depending on the specific nature of the crime.
Numerous private websites also offer advice and tips on what to do if you suspect an Internet or email scam. Sites like Scamdex and Hoax-Slayer are just a few examples.
History shows that email scammers and online fraudsters will keep adapting with technology, continually testing security measures for vulnerabilities and seeking new victims to deceive. A recent shift in tactics has seen these scammers move away from broad, mass email campaigns and towards more targeted, personalized attacks. Users of the internet should always exercise caution when receiving emails from unknown senders and avoid clicking on any links provided. Experts recommend using the delete key as the best option. If you believe you've fallen victim to a scam, be sure to report it to the relevant online authorities.
