When the creativity of scammers, the goodwill of users, and weak security come together, it creates a risk of billions of dollars. According to data from the Federal Trade Commission (FTC), in 2021, US consumers lost about 6 billion US dollars due to fraud, a 70% increase compared to the previous year.
Sometimes it’s immediately apparent that something is wrong. You may have clicked on a phishing link and realized what happened a moment later. Or perhaps you handed your phone over to a tech support scammer who has access to your computer. However, sometimes the risk is not that obvious. For example, hackers can obtain your credit card information or personal data, such as social security numbers, through a third-party breach. They usually sell this information on a cybercrime market where scammers gather. The flow of stolen data into the underground cybercrime world continues at a rapid pace. In the US alone, there were more than 1,800 reported breaches in 2022, affecting 422 million consumers, a 40% annual increase.
Five signs that you are a victim of fraud
Unusual transactions and/or new credit card limits. If scammers have access to your data or financial information, they can use it for payment fraud. In this case, stolen card information or cards registered with stolen accounts are used without your knowledge. Alternatively, they can use your identity information to apply for new credit cards.
The purchased product did not arrive. E-commerce fraud is another growing problem. Scammers often try to sell expensive hardware online at very low prices to deceive buyers. However, these products are not in stock, and they demand payment through instant cash payment apps that do not offer buyer protection.
The person you were dating suddenly disappeared. According to the FBI, romance scams earned scammers more than 956 million dollars in 2021. Many cases go unreported because victims are too embarrassed to admit they were scammed. This number could be just the tip of the iceberg. A romance scammer usually establishes an online relationship with their victim before asking for money for fake requests. When they feel that the victim has nothing left to give, they disappear, never to be heard from again.
Account locked. If a scammer gets hold of your login information, they usually access your account and change your password. This can be anything from your social media to your Netflix account information. These can be collected for personal information, including registered credit card details. But it is also valuable in itself. According to a report, while 2 US dollars are paid for a social security number, each Instagram account is worth 45 US dollars. This is because such accounts can be used to send unwanted emails to other users following your profile.
Unable to withdraw money from crypto investment. Investment fraud is another high-earning method. This type of fraud, which earned about 1.5 billion dollars in 2021, is more common than all other cybercrime categories except business email compromise. Investors are often encouraged to deposit money and may even be shown fake returns on their investments. However, when you actually want to withdraw a portion of this money, you probably won’t find anyone to help you.
How to protect yourself from fraud?
To recover from an attack and build resilience against future cyberattacks, experts recommend the following:
- Use strong, unique passwords that are stored flawlessly and recalled by a password manager.
- Use two-factor authentication (2FA) to add a second layer of security on top of passwords to reduce the risk of phishing and account takeover.
- Keep devices and software updated with patches and the latest versions.
- Do not store your personal and financial information in an online account. Although entering details each time may be more difficult, checking out as a guest is safer.
- Ensure the security of all devices and computers with malware protection offered by a reputable vendor.
- Use a well-known security solution on all your devices.
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