How to avoid Online Fraud

In this article, we take a look at some of the most common types of online fraud today.

The internet has given people all over the world an opportunity to stay connected, stay well informed, and to make a lot of money as well.


It has also, unfortunately, given an opportunity for fraudsters to come up with various internet scams to rob people off their hard earned money.

Work at home opportunities

Some websites say that they have a list of incredibly profitable work at home opportunities that pay anywhere from $2000 to $10000 per week. You got to be kidding me, right!!!


They say that you could get access to that information by paying a small fee of $100. However, when you pay the fee, you will find that the information is not worth $10, leave alone $100.

This is one of the most common types of online fraud today.

Let me be the first to say that, there are some legitimate ways to earn money from home.

Pyramid schemes

A lot of scammers masquerading as network marketing companies devise pyramid schemes that are both unsustainable and illegal. These schemes usually have an entry fee.


Once you join, you will be promised that you will be paid whenever you bring in new members. Since there is no product or service to sell, the only way to make money is to keep introducing new people to the company.


Once the scammer makes enough money, he will simply vanish from the scene. Unfortunately, this type of internet fraud has made people doubt even legitimate network marketing companies.


Identity theft

This is probably the most common internet fraud today. Identity thieves usually look to steal your personal information like credit card number, social security number, and bank details.


They usually use Trojan horses that contain key logging programs to get such information. Once they get all the details, they can steal all your money or use your identity for illegal purposes.


Lottery

Lottery scams are perhaps as old as the internet itself. Scammers usually send emails congratulating people on winning a lottery.

The emails usually say that you have won $1.2 million and need to pay a small amount as legal fees, fund transfer charges, or processing fees.


Once you send the money to the scammer, he will simply disappear. A surprisingly large number of people have fallen prey to this type of internet fraud.


Phishing

This is a very sophisticated fraud. The scammer usually designs a clone site which looks exactly like your online banking site and sends you an email that contains a link to the same site.


The email usually says something like ‘you need to update your account information’, ‘you need to change your net banking username and password’, etc. Once you click the link, you will be taken to the clone site, where the information you enter will be stolen by the scammer.

Every year, people lose hundreds of millions of dollars to phishing related internet scams.


Advance fee fraud


Popularly referred to as the ‘Nigerian banker scam’, advance fee fraud is extremely widespread. The scammer usually sends an email asking your assistance to retrieve a large amount of unclaimed money or gold from a bank.


The email usually says that the third party is a bank employee who needs your help as he cannot access the funds directly. In most cases, you will be asked to send a certain amount of money along with your personal information to open an account with the bank.

The fraudster usually sends the same mail to a lot of people, defrauds them, collects a hefty sum of money, and disappears. This again is one of the most well known internet scams today.


Tips to avoid online fraud

• Never click the links in emails sent by strangers.
  
  
• Never download anything from websites if you are not sure of their authenticity. This is one of the simplest tips to avoid internet fraud.


• Never reveal your credit card details or social security number unless you are making a purchase or applying for employment or credit.


• Before you join an online business network, research its history and try to find as much information as possible.


• Install a good antivirus program and a firewall program to safeguard your PC from viruses, Trojan horses, spyware, malware, and other such malicious programs. This is one of the best ways to avoid internet scams.




Online Fraud (marketing)

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