Our ever-evolving world is bringing about newer methods of fraud by the day, so it’s important to stay alert, writes Jason Osborne
An advertisement I saw recently on the internet suggesting that I could “double” my Bitcoin got me thinking about how a scam like this would make no sense to someone even 20 years ago. We live in an ever-changing world, and those changes have brought both good and bad.
A year into the Covid-19 pandemic and one of the changes for the worse has been a jump in the many types of fraud, fuelled by our increasing reliance on the internet, phones and other forms of depersonalised communication.
If you’re to manoeuvre these potential minefields successfully, awareness is your best bet. You ought to be aware of the many ways in which modern fraudsters and scammers attempt to reach you, and you ought to be aware of what to do if they do, or if you think you’ve been the victim of fraud.
Types of fraud
Whereas once upon a time, the most obvious way to scam someone was to call to their door and try to sell them something faulty, there are unfortunately many more ways to do so today:
– Email fraud
– Phone fraud
– Card fraud
– Online fraud
– Investment fraud
These are but a selection of some of the tools at the modern fraudster’s disposal, and there are undoubtedly more. The key is to be aware that not every phone call you get, email/message you receive or advertisement you chance upon is to be trusted. A general truism is that if it looks too good to be true, it probably is.
Email fraud
Email fraud is one of the most common ways that potential victims are targeted, with malicious actors sending fake emails that look like they’re from reputable sources or come with good intentions. Oftentimes, they will ask you to click on a link or send on personal and financial details. Many times, they lead you to websites that look genuinely professional, asking you to fill in your details for a refund, credit or an unexpected lottery or cash prize win. Unexpected job opportunities provide popular sources of potential fraud, too.
Even if you click into a link without inputting any personal or financial details, there is the potential danger that the link, when clicked on, downloads malware (malicious software) to your computer or device, some of which allow a fraudster to track your online activity, and therefore pass your financial, personal or security information along. This could result in your cash being stolen or your details being used in criminal activities.
The best guidelines to follow when dealing with email scams are: don’t respond to emails asking for any sort of personal or financial information without independently verifying that the email came from the company it claims to be from; never give away security details, such as your pin code or passwords, online to anyone; be suspicious if asked for card or security details via email – banks and card-issuers will never ask for security credentials by email.
Phone fraud
Another regular way scammers try to fool people is via phone – contacting you and pretending to be from a reputable company or a bank, and thereby tricking you into giving them your personal, financial or security details. These calls are often accompanied by a sense of urgency, asking you to “verify”, “update” or “reactivate” something. They won’t want to give you time to research or verify their authenticity.
It’s a good rule of thumb not to assume a caller is genuine just because they have some details or claim to represent an organisation you’re familiar with”
Again, simply being wary of unsolicited phone calls or voicemails goes a long way to combatting this risk. Secondly, never divulge personal information until you have verified that the caller is a genuine representative of the organisation that they claim to be calling from.
You can do this by taking the caller’s number and telling them that you’ll call back once you’ve verified their identity, or by looking up the organisation’s number and making contact directly with them instead. If the caller is genuine, they’ll understand.
Another thing to watch out for is that fraudsters may already have some basic information about you – such as your name, address, or account details – that they’ve gathered by various means. It’s a good rule of thumb not to assume a caller is genuine just because they have some details or claim to represent an organisation you’re familiar with.
Card fraud
The key with cards is to keep both them and your pin number safe at all times. By doing so, not leaving your card lying around for example, you go a long way towards mitigating the fraud that can be carried out using your card.
If your card does go missing, lost or stolen, the most important thing to do is contact your bank immediately and report it as such.
Checking your statements is also an important step in the fight against card fraud. Constant vigilance will allow you to determine if your card’s activity matches up with how you’ve been using it. If you notice any inconsistences, it’s time to contact your bank or card provider and say so.
Online fraud
With the exponential increase in online activity since the beginning of the pandemic, there has also been a similar increase in instances of internet fraud, the Gardaí raising continual awareness of the issue since early last year.
The internet is more interwoven with our daily lives than ever before, with shopping, socialising, banking and work all carried out virtually in many households around Ireland. Bringing many opportunities with it, the online world also provides criminals the chance to attempt crimes from a distance, which reduces their chances of being caught.
In order to protect yourself against this particularly prevalent form of fraud, a couple of guidelines to keep in mind:
– When shopping or banking online (or making any kind of monetary transaction) make sure your internet access is secure – the beginning of the website address should change from ‘http’ to ‘https’ before a purchase is made, indicating a secure connection.
– Do not use unsecured public wi-fi networks to make a purchase or access your online banking; opt for a 3G or 4G connection instead.
– Ensure the padlock icon is present to ensure that the retailer has an encryption certificate. This appears next to the website address in the search bar.
– Use privacy settings on your social media profiles, as information is valuable to fraudsters too.
– Do not click on pop-ups or ads in general, but especially with offers that appear to be too good to be true.
– Develop strong passwords – alpha-numeric passwords are the best, which use both numbers and letters.
These steps will ensure that you stay protected against what is a booming form of fraudulent activity.
Investment fraud
According to the Gardaí, investment fraud has increased by 120% during the Covid-19 pandemic, with common investment opportunities such as shares, bonds, cryptocurrencies (such as the Bitcoin one I mentioned earlier) and rare metals being offered to people from many different directions.
Investment fraud is where criminals pose as investment managers, promising quick returns with high rates of return – before simply stealing your money.
The guards report that nearly all recent investment scams have been related to virtual currencies such as Bitcoin and other cryptocurrencies. Losses start at €1,000 in many cases, with the majority being in excess of €40,000, representing a person’s pension or life savings.
Many of the previous pieces of cautionary advice apply here, but another one to keep in mind is that independent financial or legal advice is a must before making an investment.
If you would like any more information on ways to identify fraud or scams, and how to deal with them, the websites www.garda.ie and www.fraudSMART.ie have a plethora of resources on the topic.