Top 5 Common Online Scams & How To Spot Them

Digital thieves are everywhere, lying in wait to scam money from you. They email you a plea for help or a promise to earn a lot of money if you pay some simple fees. But don't worry, we can help you beat them at their own game! Our banking experts reveal the top five most common online scams and how to avoid them.

5 Common Online Scams

Online scams are a growing problem. Cybercriminals have more sophisticated tricks and tactics than ever before to trick people into giving up their money and personal information. But with our guidance, you can keep an eye out for these top five most common online scams and feel confident in the security of your finances.

1. Charity Scams

Whether in person, over the phone, by e-mail or online, charity scammers get their name by asking people for donations. These scams sometimes play on your emotions and your desire to help less fortunate people. Always research a group before giving them money, know where your money is going, ask about registration and document your donations to ensure your security and confidence.

2. Phishing Scams

When you receive an email from what appears to be a reputable business requesting personal information, it's important to remember that this could be a phishing scam. Fraudsters may ask for sensitive details like your banking information, passwords or social security numbers, which they can then misuse. By being cautious and verifying the authenticity of such requests, you can protect yourself from falling prey to these scams.

3. Tax-Related Scams

Criminals may even impersonate IRS agents or other government representatives and trick you into sending them personal information or granting access to your tax refund. These scams are especially lucrative because not many people have experience dealing with the IRS.

4. Fake Kidnapping Scams

This type of scam typically starts with a phone call saying your family member is being held captive. Fake kidnapping scammers will normally provide specific instructions to ensure a safe return of the family member and ask you to stay on the line until the money is wired. Always be cautious of incoming calls from an outside area code and callers who go to great lengths to keep you on the phone.

5. Credit Card Scams

The increase in credit card and online payment usage has also led to an increase in payment-related scams. These scams, such as skimming, application fraud and account takeover, are increasingly common as scammers take advantage of the rise in remote payments and online sales. It's important to be vigilant and prepared, as understanding these scams is key to protecting yourself from falling victim to these ploys.

How To Recognize Phishing

Phishing scammers often update tactics to keep up with the latest news or trends. Our experts highlight the common signs of a phishing scam you can look for to avoid the “phish hook”:

• Urgent or threatening call to action
• Email address doesn’t match the sender name
• Message is from a first-time, infrequent or unknown sender
• Spelling and grammatical errors
• Generic greetings
• Suspicious links or attachments

Avoid Online Scams By Proceeding With Caution

Using caution is the number one way to recognize and avoid online scams. If an offer seems too good or bad to be true, it probably is. Learn more about how online scams happen to prevent fraud, and get more tips from our experts at Rivers Edge Bank on how to avoid identity theft.