If you’re one of those people who has never fallen victim to financial online scams or has never even heard of them, then you’re in the “lucky” category. During the first quarter of 2023 alone, some Americans lost more than $7 billion to fraud, representing a 5% increase from 2022.

Scammers use sophisticated tools and techniques to lure their victims. They also know where to push emotionally, making people send money or even share sensitive information without questioning anything.

According to Kathy Stokes, the director of fraud prevention programs with AARP, “They have the money, they have the time, and they’ve got the playbook to get you into that heightened emotional state. It’s us against them.”

But what are some of the most common financial online scams to be aware of? And how to protect yourself and your loved ones? Let’s discuss below.

4 Financial Online Scams to Stay Away From in 2024

Here are some of the financial scams you don’t want to become a victim of and ways to safeguard yourself from them:

1. Phishing Scams

Scammers send approximately 3.4 billion phishing emails each day, with their primary goal being to steal as much money as possible. Sometimes, they prey on people’s personal information, which can eventually be used to steal even more money.

But what is phishing exactly? It’s the practice of sending fraudulent emails or text messages to trick people into revealing their sensitive data. There’s even vishing, where scammers call individuals instead of texting.

How to protect yourself from phishing scams:

• Don’t click on suspicious links in emails or texts, and don’t download any attachments.
• Never disclose your personal information, such as credit card details or Social Security number, to individuals you meet for the first time. No legitimate organization will ever text or call you with such requests.
• Reverse search unknown phone numbers and email addresses on Nuwber to learn who stands behind them.

2. Romance Scams

Romance scams aren’t unheard of these days. They are everywhere: on dating apps, social media, messaging apps like Telegram and WhatsApp, and even email.

In 2022, according to the Federal Trade Commission, 70,000 Americans lost $1.3 billion to romance scams. Here’s how romance scams work: a cybercriminal creates a fake account to lure unsuspecting women or men online. They try to rush the relationship and start discussing falling in love almost immediately. They then ask for money, receive it, and the victim never hears from them again.

How to protect yourself from romance scams:

• Check the account of the person you’re in contact with for any warning signs. It could be an AI-generated photo, a lot of posts with barely any or no likes, or even no posts at all.
• Never send money to someone you’ve only talked to online, especially if you only texted.
• Be aware of the warning signs, such as requests for specific payment methods, unusual communication with grammar errors, and refusal to video chat.

3. Charity Scams

If you’re a kind person who loves to help everyone without first fact-checking the details, then there’s a high probability that you can become a victim of a charity scam. These scams target individuals who are responsive, compassionate, and easily suggestible, often those who don’t hesitate to help a child in need or a stray cat.

According to estimates, charities lose 5% of their revenue to fraud every year. Little do some people know that, instead of donating to a legitimate charity, their hard-earned money often ends up in the pockets of scammers.

Charity scams often occur after natural disasters, during holiday seasons, and during tax season. Awareness months (e.g., Breast Cancer Awareness Month) are also no exception.

How to protect yourself from charity scams:

• Always verify the charity before donating, even if the person on the other end of the line pleads for donations. It’s better to take 5 minutes of your time to at least Google the charity’s name than lose money.
• Don’t succumb to emotional manipulation to help people in need or save a dog. High-pressure tactics, lack of information, and suspicious payment methods are some of the giveaway signs of charity scams. If you really want to help, find the list of charities online and reach out to the one that you want to donate to.

4. Employment Scams

Job seekers are especially vulnerable to scams nowadays. Such a simple task as finding a job can cost you thousands of dollars if you don’t know what you’re dealing with.

In 2023, fake job scams were one of the fastest-growing types of scams in the US, with 15,000 people losing $52 million to them. Some common giveaways of these scams include too-good-to-be-true offers, upfront fees, interviews conducted via messaging apps, requests for money or personal information, and generic job descriptions, among other things.

In some cases, scammers impersonate real companies. They use the names of well-known organizations or businesses and create spoofed email addresses to appear legitimate to job seekers. Unfortunately, some individuals fall for this, which results in them not getting the job, even in the best-case scenario.

How to protect yourself from employment scams:

• Research the company that contacted you. Check their official website and contact information, and make sure to pay attention to reviews on Indeed and Glassdoor to see what people have to say about the company.
• Verify job postings for detailed descriptions of responsibilities and qualifications. If the description is vague and has terms like “fast money”, “earn fast”, “no experience necessary”, or “unlimited earnings”, it’s better to proceed with caution.
• Check for professional communication. If emails or messages are unprofessional, with a lot of grammatical or lexical errors, there’s a high chance that you’re dealing with a fake job offer.

Let’s Sum Up

Financial online scams are prevalent these days, with scammers employing their most effective techniques and tools to deceive individuals into sending them money or sharing personal information. Thankfully, some signs give them away, and an increasing number of people are learning how to protect themselves.

Phishing scams, romance scams, charity scams, and employment scams are some of the most widespread rip-offs in today’s America. The only solution is to educate yourself and be aware of what’s out there in the digital space.

Photo by SumUp; Unsplash