Recent research from the University of Portsmouth reveals that online fraud costs over $5 trillion globally. As technology continues to evolve, so do the tactics used by fraudsters. Vulnerable groups, including the elderly, people with disabilities, and those in debt, are particularly at risk, but anyone can fall victim to cybercrime.

How to Protect Yourself

Elyssa Abdullah, Vice President of Security at Mastercard, advises adopting a skeptical mindset: "Yes, be suspicious—stop for a moment and think." For a more detailed approach to safeguarding yourself against fraud, consider the following insights.

Common Tactics Used by Fraudsters

Fraudsters often exploit fear, urgency, and money to deceive victims, according to cybersecurity expert Petros Efstathopoulos. When contacting potential targets via phone or email, they create a sense of impending crisis that requires immediate resolution. For example, a scam email might claim there's an issue with your tax return that must be fixed urgently.

Many scammers also use financial incentives, posing as tax experts or government officials offering unexpected refunds contingent on sharing personal information or making payments.

Common Types of Fraud

Have you ever received a call or text from an unknown number asking you to act quickly or persuading you to provide information? If so, it’s best to hang up immediately and avoid engaging with such messages, advises James Lee, COO of the Identity Theft Resource Center.

Scammers often impersonate authorities, such as tax collectors or debt collectors, and may even pose as family members in need of immediate financial help. Lee recommends contacting the relevant organization directly using official channels.

Romance Scams

Romance scams typically target individuals feeling isolated or lonely. These scammers can take their time, sometimes up to a year, to build a relationship before defrauding their victims. Kate Kleinart, a 70-year-old American, lost tens of thousands of dollars to a romance scammer who posed as a handsome individual online. She advises caution when accepting friend requests on social media and suggests involving a younger person to verify identities.

Job Scams

In job scams, fraudsters pose as recruiters or company representatives, aiming to steal money or personal information. They often use the name of a legitimate company and create attractive job listings that offer high salaries for minimal qualifications. Some may even approach job seekers directly through social media or text messages.

Eva Velasquez, president of the Identity Theft Resource Center, states that legitimate employers will only ask for your skills, experience, and contact information at the beginning of the hiring process. Any further details should be shared only after securing the job.

Investment Scams

Investment scams are rampant, including schemes involving cryptocurrency. The Federal Trade Commission (FTC) advises researching any company that approaches you with investment offers, particularly by searching for the company name followed by "scam."

Social Media Quizzes

Seemingly innocent social media quizzes can be dangerous. Scammers may use these quizzes to gather personal information to answer security questions for your accounts. The FTC recommends avoiding online quizzes altogether.

Technology as a Shield

Experts suggest not answering calls from unknown numbers and never sharing your bank account passwords, as legitimate banks do not request this information. Use your phone’s features to block scam calls and unwanted messages, and take advantage of email filtering options.

Employ a password manager to ensure you use complex passwords that are difficult for scammers to guess. Regularly check your credit report and bank statements to identify any unauthorized activity, and enable multi-factor authentication for your social media and banking accounts. If in doubt, always seek help.