We’ve reported on the threats poised by AI-driven deepfake scams, as well as a recent crypto scam that cost billions in losses globally. But have you heard about the new tech support scams? How about smishing (a version of phishing)? Or free trial scams? These are just a few examples of how the tactics of cyber crooks are constantly evolving.
In fact, online scams affect millions of Americans each year, with potential losses exceeding $12.5 billion in 2023, according to the FBI. During that same period, scams targeting people over 60 were responsible for over $3.4 billion in losses —an increase of approximately 11% from the year prior. And these numbers may be a significant undercount, according to some experts, since embarrassment or lack of awareness sometimes keeps people from reporting.
So what are the recent scams you need to know about? We’ll unpack it all for you here.
Tech Support Scams: The most widely reported cyber crime among older Americans in 2023, these schemes involve fraudsters posing as tech support representatives from well-known companies like Microsoft or Apple. They claim that the victim’s computer is infected with viruses and trick them into granting remote access or purchasing unnecessary software. These scams are particularly prevalent and costly, according to the FBI.
Government Impersonation Scams: Scammers pose as officials from government agencies such as the IRS, Social Security Administration, or Medicare. They use threats or urgent messages to convince victims into providing personal information or making payments.
Investment Scams: Older adults are often targeted with fraudulent investment opportunities. These scams promise high returns with little risk and can involve Ponzi schemes, fake bonds, or fraudulent certificates of deposit. Investment scams were the most costly type of elder fraud in 2023, leading to over $1.2 billion in losses.
Smishing Scams: Similar to phishing – where con artists use fraudulent emails and websites to deceive people into sending Money, revealing sensitive information, or installing malware – smishing usually involves fake text (or SMS) messages that trick recipients into providing personal information or clicking on malicious links. These messages often appear to come from legitimate sources like banks or service providers.
Romance Scams: Scammers create fake profiles on Dating sites and social media to build romantic Relationships with their victims. Once trust is established, they request money for various fabricated needs such as Travel expenses or medical emergencies. Romance scams are highly lucrative for fraudsters and can be emotionally devastating for victims.
Free Trial Scams: In this scheme, con artists offer “free” trials of products or services, but require a credit card for shipping or processing fees. Victims are then charged hidden fees or enrolled in expensive subscription services without their consent.
Fake WiFi Hotspot Scams: You may want to consider skipping the free hotel or coffee shop WiFi. For this scam, cybercriminals set up fake WiFi hotspots in public places. When users connect, crooks can intercept personal information and login credentials, leading to identity theft or financial fraud.
Scareware Scams: This old scam is still making the rounds. It involves pop-up messages that warn users their computer is infected with a virus. The message prompts them to download software or call a phone number for help, leading to financial loss or malware installation.
Charity Scams: It’s always a good idea to do your diligence before you donate, especially when you consider that fraudsters routinely create fake charity websites or send emails to solicit donations for “disaster relief” or other causes to steal money and personal information.
Google Voice Scam: Scammers trick victims into sharing a Google Voice verification code, which is then used to create a new Google Voice number linked to the victim’s phone. They can also access personal information, like contacts and messages, which can be used for further scams and fraudulent activities.
Contests and Lottery Scams: Victims are told that they have won a large sum of money or a prize, but they must pay fees or taxes upfront to claim their winnings. These scams often request payments via untraceable methods like gift cards or wire transfers, making it difficult to recover the money once sent.
We’ve all heard of these tips before, but it bears taking another look.
Use Strong, Unique Passwords: Create strong passwords for each of your online accounts, using a mix of letters, numbers, and special characters. Consider using a password manager to generate and store complex passwords securely.
Enable Two-Factor Authentication (2FA): Adding an extra layer of Security, such as a text message code or an authentication app, can significantly reduce the risk of unauthorized access to your accounts.
Be Cautious With Emails, Texts and Links: Avoid clicking on links or downloading attachments from unknown sources. Verify the sender’s identity and be wary of emails that create a sense of urgency or ask for personal information.
Regularly Update Software: Ensure that your operating system, browsers, and applications are up-to-date to protect against vulnerabilities that cybercriminals can exploit.
Monitor Financial Accounts: Regularly check your bank statements, credit card bills, and other financial accounts for any suspicious activity. Report any discrepancies immediately.
Review Privacy Settings: Regularly review and adjust the privacy settings on your social media accounts and other online services. Limit the amount of personal information you share publicly and be cautious about who can see your posts and personal details. Many platforms offer settings that allow you to control who can view your profile, posts, and contact information.
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A version of this story was originally published in July 2024. It has since been updated.
