Top 10 Most Common Online Scams

What are some of the most common online scams? — The internet has made it increasingly easy to connect with people and businesses around the world. Unfortunately, it has also made it simpler for scammers to target vulnerable internet users.

There are various types of scams, but some are more common than others. In 2020, the FBI reported there were more than $4.2 billion in losses from online scams, of which the leading types were phishing scams, non-payment/non-delivery scams, and extortion.

In this article, we will take a look at the top 10 most common online scams. Understanding these scams and how they work can protect you and your loved ones from becoming victims.

1. Phishing Scams

Phishing Scams are the most popular scam on the internet.

A phishing Scam is a type of scam where you receive an email that looks like it’s from a legitimate company or person, but is actually from a fraudster. The email will usually contain a link to a fake website that looks real, but is actually a way for the fraudster to collect your personal or financial information, such as your passwords or credit card number.

Phishing scams are the most popular online scams, accounting for over 50% of all online scams. These scams are becoming more and more sophisticated, so it’s important to be aware of them.

2. Online Shopping Scams

Shopping or eCommerce Scam is the second most popular online scam method used by fraudsters. Unfortunately, many still fall victim to them. Online shopping scams can take many forms, including fake websites, counterfeit goods, phishing emails, etc.

Usually, the best way to guard against online shopping is to look up reviews before making a purchase. However, these fraudsters are not ready to make things easy as they also flood the internet with fake reviews. Hence, it is important that you are extra vigilant when shopping online, and only shop on websites that you know and trust.

READ ALSO: Top 10 Countries With The Highest Number of Internet Fraudsters

3. Identity Theft

Man using a false identity to receive sensitive information from a woman over the phone.

Identity theft is a type of fraud that involves using someone else’s identity to steal money or gain other benefits. It is one of the most common types of scams, and it can happen to anyone.

The most common form of identity theft is when someone uses your personal information to open new accounts, such as credit cards. Then, they use these accounts to run up debt in your name.

In order to protect yourself against identity theft, ensure that your sensitive personal information is private and secure.

4. Real Estate Scams

Real estate scams can occur in various forms. The scammer may post rental ads and act as the vendor, then ask for upfront payment or deposits.

To protect yourself, always verify the real property owner(s) before negotiating rental terms. Also, it is wise to pay by cheque (not in cash) so you can have a copy of the receipt.

5. Lottery Scams

Who doesn’t dream of winning a lottery or sweepstakes? Fraudsters know of this desire, so they serve it as bait to get what they want. They reach out and say you won a large sum of money but in order to “claim”, you have to make a payment or give some sensitive information. Sadly, many fall victim to these scams.

READ ALSO: Top 10 Greatest Thieves of All Time

6. Romance Scams

Fraudster handing flowers to a lady over the computer.

Romance scams are one of the oldest and the most common online scams, thanks to the growing popularity of online dating and social media. It involves feigning romantic intentions towards a victim, gaining their affection (and trust), and then using that goodwill to commit fraud.

The scammer will usually create a fake profile on a dating site or social media site, and start communicating with their victim. They will gain the victim’s trust by pretending to be interested in them, then create a story and start asking for money.

7. Investment Scams

If it seems too good to be true, it probably is. Investment Scams often guarantee large payments, and quick cash, with little to no risk. The most common forms of investment scams are cryptocurrency scams, celebrity endorsement scams, Ponzi schemes, etc.

As a general rule, always do thorough research, and seek independent financial/legal advice from a registered financial advisor before you invest. For highly volatile markets such as cryptocurrency, only invest what you can afford to lose.

8. Travel Scams

Travel scams may come in different forms such as an all-expense paid vacation, a discounted flight reservation, or a visa processing fee. Then, you will be asked to fill out a survey asking for personal information or pay a deposit. Don’t fall for it. Be vigilant. Remember, if the offer is too good to be true, it probably is.

9. Charitable donations

Whenever there is a disaster, there are always kind-hearted, charitable people who are willing to give what they can to help the victims. Unfortunately, criminals take advantage of this kindness, organize outreach and then make a run for it with donations.

10. Weight Loss Scam

This list would be incomplete without mentioning weight loss scams. Research shows that most adults and teenagers are discontent with their physical looks and are constantly on the lookout for ways to make things better. Just like any legitimate entrepreneur, fraudsters also see this as a business opportunity. Only in their case, it is illegitimate as they do not deliver on their promises.

Most online weight loss scams promise easy and fast results to entice internet users who are unhappy with their bodies. Note that there are no fast, healthy means of losing weight; eating a well-balanced diet, good fruits, and regular exercise can aid in weight loss.

Summary

The internet has made the world smaller, making it easy to connect with people across the globe. However, it also has its disadvantages; one of which is fraudsters preying on unsuspecting internet users.

Unfortunately, the elderly are the most vulnerable to online scams. You can refer to this great article to learn how to keep elderly loved ones safe from online scams.

To wrap things up, here is a recap of the top 10 most common scams on the internet.

Most Common Online Scams

1. Phishing Scams
2. Online Shopping
3. Identity Theft
4. Real Estate Scams
5. Lottery Scams
6. Romance Scams
7. Investment Scams
8. Travel Scams
9. Charitable Donation Scams
10. Weight Loss Scams