Financial scams are prevalent on the internet. Every day, there are more internet users falling victim to these scams. Those who have been scammed are left to face the consequences on their own. In some cases, people lose some money, and it ends with that.

Others aren’t that lucky and end up facing both financial and legal repercussions. Online scams are growing, and they currently pose one of the biggest threats to internet users. Since fraudulent activities have increased, internet users have become increasingly aware of these threats.

Naturally, they want to know what they can do to prevent getting scammed. With that in mind, let’s talk about the most common financial scams online and how to protect yourself against them.

Investment scams

Many investment scams start with low and irresistible interest rates to attract potential investors looking for higher returns. However, scam investments are just perfect for websites and adverts offering incredible financial opportunities with excellent rates of return.

The worst thing about them is that you’ll find scam investment offers on most social media and search engines. Online advertisement is swarming with such fake opportunities offered by fake companies. A recent story on NBC News reports that such social media scams have allowed criminals to steal $285 million in 2021.

Brand cloning

Brand cloning is on the rise, and people have increasingly fallen victim to this type of online scam. Cybercriminals and hackers target popular financial brands, tech and IT companies, gaming developers, and marketing websites to clone their services and produce fake websites, documents, and adverts.

The scammers rely on cloned price comparison websites and targeted online adverts to attract potential victims looking for products such as the latest games, free software tools, ISAs, pensions, loans, etc.

That tricks internet users into following fake links and ultimately sharing their personal and financial details with fraudsters. Cybercriminals often use brand logos or protected badges to deceive internet users into believing that they are dealing with legitimate and genuine brands.

Some scammers impersonate certified financial services that deal with online scams and offer victims compensation for losses they never experienced. They trick internet users into paying a small fee for claims they won’t process.

Pension scams

Seniors approaching retirement are perfect targets in the eyes of cybercriminals. They have accumulated funds over the years of employment, making them ideal for pension scams. Everyone approaching retirement is at risk of becoming the victim of an online scam. The problem is that these victims have little to no chance of recouping their financial losses.

Other cyber threats you should know about

While the scams we mentioned here are on the rise, there are other cyber threats to worry about. The most common online scams include:

• Phishing
• Shopping scams
• Cryptocurrency and bitcoin scams
• Fine print scams
• Fake debt help
• Digital kidnapping
• Fake antivirus tools and harmful downloads
• Online dating scams
• Fake lotteries
• False surveys
• Fake subscriptions and account failure
• Fake charities
• Free-stuff scams
• Pre-approval scams
• Digital greeting cards

Aside from these common online scams, there are many other cyber threats to keep in mind. Fortunately, you can avoid almost all of them if you know how to do it.

How to protect yourself from online scams

Using common sense and simple logic is the best way to avoid scams. If anyone or anything offers you something for free, it’s most likely a scam. Avoid following suspicious links and clicking on ads. Always visit reputable sites with HTTPS URLs.

If you’re required to leave your details, verify contact information. If a phone number or email on a website doesn’t work, it’s probably a fake website or a brand clone. Install the latest antivirus and anti-malware protection and keep your mobile phone security up-to-date with the latest updates.

Avoid public Wi-Fi and use a VPN if you use a public connection. A VPN download lets you encrypt your traffic and protect you from revealing data to hackers via unsafe HTTP websites. Some VPN products also offer protection against known phishing sites, which might help you evade many fraudulent websites.

Do some research on the latest data privacy and protection policies to know your options in the worst-case scenario. Avoid oversharing your personal details on social media and online dating sites and only give out your private information when you absolutely must.

If you're unsure if you can trust a brand, Google their website and see what users say about them. Never click on links or attachments in emails, pop-up windows, or suspicious texts.

Conclusion

Although a practical and fun place, the internet can be extremely dangerous for the uninitiated. Scams are all over the web – there's nothing you can do about it. You can learn to recognize suspicious behavior and what to do if you run into an online scam.

Cyberthreats are real, and they come in many different sizes and shapes. The more the internet technologies advance and develop, the more cyberthreats advance with them. Do some research on the typical online scams and create habits that will protect you from cybercrime.