How to Avoid The Most Common Types of Internet Fraud

When most people think of internet fraud, the first thing that comes to mind is the Nigerian letter scam. However, internet fraud takes many different forms and can be as simple as receiving an email from a fake shopping website.

In this blog post, we will explore the most common types of internet fraud, how to report them, and what you can do to avoid falling victim to them.

What is Internet Fraud?

Internet fraud is any type of fraudulent activity that takes place online. This can include anything from phishing scams and fake shopping websites to fake health organizations and tech support scams. Internet fraud can also take the form of disaster relief or COVID-19-related scams.

The most familiar type of internet fraud is online dating scams, which accounted for over $200 million in losses in 2018. Phishing scams are also recurrent, accounting for more than $450 million in losses in 2018.

The bottom line is that internet fraud is a growing problem, and it’s important to be aware of the different types and how to avoid becoming a victim.

The Most Common Types of Internet Fraud

Online Dating

This is the most common type of internet fraud, and it usually involves a scammer creating a fake profile on a dating website or app. They will then use this profile to contact potential victims and build relationships with them. 

Once they have gained the victim’s trust, they will ask for money, often under the guise of needing help with travel costs or medical expenses.

If you are using a dating website or app, be sure to do your research before meeting anyone in person. Be wary of anyone who asks for money early in the relationship, and never send money to someone you haven’t met.

Phishing

Phishing is a type of internet fraud that involves scammers sending fake emails or texts that appear to be from a legitimate source, such as a bank or credit card company. 

These messages usually contain a link that leads to a fake website, where the victim is asked to enter personal or financial information. This information can then be used to steal the victim’s identity or commit financial fraud.

To avoid becoming a victim of phishing, never click on links in unsolicited emails or text messages. If you are unsure whether an email is legitimate, contact the company directly using a phone number or email address you know to be real.

Fake Shopping Websites

These websites appear to be legitimate online retailers but are created by scammers to steal payment information. These websites may sell fake or counterfeit items, or they may not send anything at all after the victim has made a purchase.

Remember to only shop on websites that you know and trust. Check for spelling and grammatical errors, as these can indicate that the website is not legitimate. Always pay with a credit card, as this offers better protection than debit cards if your information is stolen.

Disaster Relief

This type of internet fraud usually surfaces after a major disaster, such as a hurricane or earthquake. Scammers will set up fake websites or social media accounts purporting to be from a legitimate relief organization and will ask for donations. 

These donations are often made through untraceable methods such as cryptocurrency or prepaid debit cards.

To avoid becoming a victim, only donate to well-known and reputable relief organizations. Be sure to research before giving any money, and never donate through an untraceable method.

COVID-19 Online Scams

Since the outbreak of COVID-19, scammers have been taking advantage of people’s fears to commit internet fraud. This has included everything from fake websites selling bogus COVID-19 cures to phishing emails claiming to be from the World Health Organization.

1. Fake Health Organizations

There have been numerous fake websites and social media accounts claiming to be from the World Health Organization or other legitimate health organizations. 

These websites and accounts will often share false information about the COVID-19 pandemic, such as bogus treatments or cures. They may also try to collect personal information from people who are seeking help.

2. Fake Government Sources

There have also been fake websites and social media accounts claiming to be from government sources. These scammers will often share false information about the pandemic, such as changes to government policy or benefits.

3. Fake Non-Profit Financial Requests

Scammers have also been targeting non-profit organizations with fake requests for financial assistance. These scammers will often pose as a member of the organization’s staff or board and will ask for money to be sent to them via wire transfer or cryptocurrency.

Tech Support

Tech support scams are internet frauds involving scammers pretending to be from a legitimate tech company, such as Microsoft or Apple. These scammers will often contact people directly, either by phone or email and try to convince them that their computer is infected with a virus. 

They will then offer to “fix” the problem for a fee. In reality, these scammers do not have any way to fix the problem and may even infect the victim’s computer with malware.

To avoid being victimized by this scam, never give out personal or financial information to someone you don’t know. If you are contacted by someone claiming to be from a tech company, hang up or delete the email. You can also report the scam to the Federal Trade Commission.

Fake Antivirus Software

Similarly, fake antivirus software is internet fraud involving scammers selling fake security software to people. 

These scammers will try to sell people a “security package” that will supposedly protect their computers from virus attacks. However, these security packages are useless and may even contain malware.

Travel Scams

Travel scams are internet fraud that has become more common in recent years. These scams usually involve scammers claiming to be from a travel company and offering amazing deals that are too good to be true. 

To avoid being scammed, never send money to someone you don’t know. Be sure to research any travel deals before you book, and only book through a reputable company.

419 Fraud

419 fraud, also known as Nigerian prince scams, is a type of internet fraud that has been around for many years. 

This scam usually involves the victim receiving an email from someone claiming to be a wealthy person, such as a Nigerian prince, who needs help transferring money out of their country. The victim is then asked to send money to the “prince” to help with the transfer.

Grandparents Scam

The grandparents scam is a type of internet fraud that involves scammers pretending to be a grandchild in need of money. 

These scammers will usually contact the victim by phone or email and claim to be in trouble, such as being stranded in another country or arrested. They will then ask the victim to send them money.

If you receive a call from someone claiming to be a grandchild, hang up and call the grandchild directly to verify their story.

Pre-Approved Notice

The pre-approved notice is a type of internet fraud that involves scammers sending out fake emails or letters that appear to be from a legitimate company. These emails or letters often claim that the recipient has been “pre-approved” for a loan, credit card, or other financial product. 

The scammer will then ask the victim to provide personal or financial information or to send money to secure the “pre-approval.”

Debt-Relief and Credit-Repair

Debt relief and credit-repair scams involve scammers promising to help people improve their credit score or get out of debt. These scammers usually charge a fee for their “services” but will do nothing to help the victim. In some cases, these scammers may damage the victim’s credit score.

Never pay for someone to “fix” your credit score or get you out of debt. You can also report this type of scam to the FTC.

Lottery

Lastly, lottery scams are a type of internet fraud that involve scammers pretending to be from a lottery organization. 

These scammers will contact the victim and tell them they have won a large sum of money. The scammer will then ask the victim to provide personal information or to send money to “claim” the winnings.

How to Report Internet Fraud

If you believe you have been a victim of internet fraud, you should report it to the FBI’s Internet Crime Complaint Center. You can also file a complaint with the Federal Trade Commission. Follow the steps on their websites, and be sure to only speak with certified representatives of these organizations.

Tips on How to Avoid Internet Fraud

Changing Passwords Regularly

One of the best ways to protect yourself from internet fraud is to change your passwords regularly. This will help to prevent scammers from gaining access to your personal or financial information. 

You should also make sure to use strong passwords that combine letters, numbers, and symbols. Avoid using easily guessed words like “password” or your birthday.

Being More Private Online

Another way to avoid internet fraud is to be more private online. This means not sharing too much personal information on social media or emails.

You should also avoid clicking on links from unknown senders and be careful when downloading attachments from unknown email addresses. These attachments could contain viruses that could give scammers access to your computer.

Avoiding “Too-Good-To-Be-True” Offers

If an offer seems too good to be true, it probably is. This is especially true for offers that require you to pay money upfront or provide personal or financial information.

You should also be wary of any email or pop-up ads claiming you’ve won a lottery or contest you don’t remember entering. These are usually scams.

Regular Software Updates

Always keep your computer and other devices up-to-date with the latest software updates. These updates often contain security patches that can help to protect your devices from viruses and other malware.

You should also install a reputable antivirus program on your computer to help protect it from malicious software.

Online Security Options

There are several online security options that you can use to help protect yourself from internet fraud. These include two-factor authentication, which adds an extra layer of security to your online accounts.

You can also use a password manager to help create and keep track of strong passwords for your online accounts.

Final Thoughts

Internet fraud is a serious issue that can result in the loss of personal and financial information. It’s important to be aware of the different types of internet fraud and to take steps to protect yourself from these scams.

If you believe you have been a victim of internet fraud, report it to the proper authorities. You can also help prevent internet fraud by being more careful about what information you share online and keeping your computer and other devices up-to-date with the latest security patches.