Internet fraud is alive and well, and it’s costing victims thousands of dollars. In fact, the FBI’s Internet Crime Compliant Center (IC3) received nearly 300,000 complaints of online fraud in 2015—that’s an average of almost 800 per day. Equally startling is the fact that almost half of these victims reported financial loss, which averaged $8,421 per person.
Anyone can become a victim of online crime, but older adults tend to be more at risk. According to the IC3, almost 40% of all internet crime victims are over the age of 50. Sadly, this group also reports the greatest number of victims who lose more than $100,000.
We don’t expect you or your loved ones to unplug from the internet, but we do want you to stay safe online. So familiarize yourself with these common internet scams and the proactive measures you can take to avoid them.
Scam: Fake Credit Report Websites
By law, you’re entitled to a free copy of your credit report once every twelve months. AnnualCreditReport.com is the only government authorized website for ordering your free annual credit report, but the internet is full of imposter sites. These websites claim to offer “free credit reports,” but oftentimes they’re trying to collect personal information, like your Social Security number or date of birth, that can be used to steal your identity. Other websites might offer “free” credit monitoring, but then charge a fee to your credit card after a trial period.
SafeWise recommends checking your credit report at least once per year. If you find unauthorized activity and think you’ve been a victim of identity theft, place a fraud alert on your credit report.
How to Avoid This Scam
Don’t respond to emails, pop-up ads, or social media ads that offer a free credit report. Go through AnnualCreditReport.com instead. Be aware that some fake credit report websites have URLs that are very similar to AnnualCreditReport, so type the address in your search bar carefully and verify you’re on the legitimate site before entering any information.
Scam: Online Romance
Dating websites can be great for meeting new people, but unfortunately, romance fraudsters also use these sites to find their victims. And, according to the FBI, romance scams result in greater financial loss than any other internet-facilitated crime, with the average victim losing over $100,000.
This type of fraud takes on many different forms, but typically it starts with the scammer developing a supposed online romance with the victim. Once the scammer gains the victim’s trust, they’ll ask for money. They often claim to need money due to a personal emergency or to buy a plane ticket to visit the victim. Romance scammers have even gone so far as to persuade their victims to give them access to private financial accounts. It’s also not uncommon for these conniving criminals to convince their victims to commit financial fraud on their behalf.
How to Avoid This Scam
Older adults should be especially cautious using online dating websites, as some romance fraudsters specifically target older citizens. What’s more, women are victimized at a much greater rate than men. No matter what your age or gender, review our tips for dating online safely to help minimize the chance you’ll get duped. Don’t hesitate to break contact with anyone who tries to scam you, and you should always report them to the dating website.
Scam: Bogus Pop-Up Security Warnings
This scam preys on consumers’ fears. A bogus pop-up warns the user that their computer has just been infected by a virus, and directs them to download security software immediately.
Sometimes, the goal of this scam is to make money by tricking the victim into purchasing rogue software. Other times the supposed security software is free, which helps encourage the victim to download it. Once installed, the software takes control of the victim’s computer, where it can wreak havoc or burrow into your private, stored information. Even experienced internet users can be fooled by this scam, as many phony pop-ups look like legitimate messages coming from Windows or a leading computer security provider.
How to Avoid This Scam
One of the most effective ways to help avoid this scam is to protect your computer with genuine anti-virus software from a reputable security company. A good option is Norton AntiVirus, which helps defend your computer against scams as well as viruses and phishing attempts.
What to Do If You’re Scammed
Cyber criminals are always thinking of new ways to fool people, so use caution anytime you’re on the web. If you fall for a cyber scam (or think you may have), don’t be embarrassed. Gather any relevant information about the incident and then file a complaint with the IC3. An analyst from the IC3 will review and research your complaint and send out information about the incident to the appropriate law enforcement or regulatory agencies.
Talk to your loved ones about these common online scams, and encourage them to tell you if they think they’re being scammed. Whether they’re being scammed or have narrowly missed being scammed, recommend reputable antivirus software for their use and protection. Particularly if you have kids, make them aware of these and other potential online dangers before they encounter them. SafeWise also recommends using parent control software to help protect your kids from cyber criminals. With your friends and family properly warned and informed, you can rest at ease knowing the people you care about are cared for.