The current pandemic has given fraudsters and scammers more opportunities to trick people in many new ways. Now that majority is spending time at their homes to follow safety protocols and avoid getting the deadly virus, our online presence—whether it's for work, online shopping, or socializing—has become more active as well.
That said, it's essential to know the latest online scams this year so you can avoid them.
APP fraud is currently one of the fastest-growing scams today. According to statistics, millions were already lost because of it. This scam happens when a fraudster tricks people into making bank transfers or sending a huge amount of money to them by posing as someone from your bank or a well-known organization. Many people fall for this trick because of how complex and convincing it is.
Another common scenario is a fraudster pretending to be an online seller and tricking someone into purchasing goods that don't really exist.
Luckily, there are simple steps to take to avoid APP fraud.
An account takeover fraud occurs when a fraudster gets access to the victim's login credentials and uses it to steal money or information. Fraudsters usually target financial bank accounts through different methods like phishing and malware. They can take over existing accounts such as bank or credit card and eCommerce. They typically get personal information such as email addresses, passwords, card numbers, and more from data breaches or purchasing it on the Dark Web. This information is used mainly for financial gain and often leads to fraudulent transactions and unauthorized shopping.
ATO can be challenging to detect as many fraudsters have adapted and changed their ways to hide their identity and avoid suspicious behavior. You can consider the following to prevent it:
Like account takeover fraud, scammers use stolen credentials to bypass identity verification checks to open a new bank, credit, or loan account, then borrow money and disappear, leaving debts to the victim. New account fraud is also sometimes used to launder money.
NAF is challenging to spot since fraudsters use legitimate information from consumers and sometimes combine different identities and information to make another one.
Some ways to avoid NFA are:
Transaction fraud happens when a fraudster makes a transaction using stolen payment information. The most often used information used is the 16-digit debit/credit card, the card's validity, and the Card Verification Value or OTP that they send to the registered mobile number. This information is gained through phishing attacks, and with more of us in quarantine and have been relying primarily on online transactions, fraudsters have found more opportunities to con people.
You can protect yourself from phishing attacks by doing the following:
Synthetic identity fraud is one of the most recent and fastest-growing financial crimes. Fraudsters create fictional personas using different personal information from many victims to make sure it's believable enough to pass a company or organization's identity check. After passing the identity check, the fraudster might use this identity to open accounts and make transactions.
While there are no specific victims under this fraud, the use of your personal information may still affect your credit file. Avoid getting your personal information used for SIF by:
Many countries are starting to distribute vaccines, and rapid COVID-19 testing has become more accessible, Experian expects that fraudsters will find this as a way to trick vulnerable customers and businesses by offering them vaccines, test kits, and fake medicines.
Experian predicts that hackers and scammers will turn to automated methods to make cyber attacks and account takeover frauds this year and will continue to thrive unless the industry stops relying on usernames and passwords.
Make your everyday online activities and transactions hassle-free with fast internet! A reliable internet connection means you can easily track your card activities, delete suspicious emails, and update passwords.
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