What are scams?
Scam, con, fraud, swindling, extortion, blackmail, ripoff: These are all synonyms for when someone uses dishonesty to obtain someone else’s money.
Scams have been around a long time, and methods have evolved to meet people where they are most vulnerable. Today, most scams occur online, often run by complex and illegal operations. Scammers are very good at what they do, and anyone can fall victim to a scam!
What kind of scams are common?
There are many kinds of scams going around today, and the names used to describe them refer to the method scammers use to extort money or resources from their victims. Any interaction involving personal information or financial information has the potential to be used for a scam. Scammers may target individual victims, or they may target companies.
Did you know? Romance scams and investment scams are the two most common methods of fraud today.
Romance scams (ask for money, personal information, incriminating images, etc.)
Investment scams (cryptocurrency, bitcoin, pyramid schemes, etc.)
Phishing (fraudulent emails)
Vishing (fraudulent phone calls or voice messages)
Advance fee fraud, pension scams, online shopping, etc. (require payment before services)
Lottery or competition scams (claim you’ve won something)
Computer hacking (malware, monitoring)
Banking or credit card scams (related to phishing)
Job and employment scams (ask for personal information or may use you for money laundering)
Insurance scams (false insurance companies or false individuals)
Identity theft (use of personal information for criminal purposes, such as insurance or romance scams)
How does it work?
Often scammers are criminal organizations based in a different country. They will work in teams with a script off of a spreadsheet with personal information about their victims.
In most cases, the scammer will create personas and approach the victim first, but not always. Sometimes they will make false accounts and wait for victims to reach out to them. Once connected, they are very friendly, emotionally vulnerable, and connect with the victim very quickly. Or, they may pretend to be another company and claim to require more information or money from the victim to complete their “services”. Time frames for the scam can vary depending on the scam type, from minutes to weeks, or even several months.
Regardless of the method, at some point, the scammer will invent a convincing and seemingly genuine reason for requesting money or a money equivalent. The money sent to them will not be recoverable. If successful, the scammer may exploit the victim’s vulnerability and repeat the process to collect as much money from their victims as they can until they get caught.
What’s the language that scammers use?
They will connect very quickly and very intensely with their victims, which may be a red flag. If they use broken English or use the wrong name for you, that is another red flag.
They may seem to always be online and they will tend to use visceral language rather than logical language. This language is intended to invoke an intense emotional connection for the victim, such as saying “I’m worried sick,” or “the spirit has moved me,” etc. This is another red flag.
In romance scams, scammers will tailor their profile to fit their victim’s interests. They fall in love quickly and seem too good to be true. Another red flag! When their victim is emotionally invested in the scammer’s story, then they use information that they introduced at the beginning of the relationship (being overseas or in the military are common guises) to explain why they need money. This is a tactic comparable to domestic abuse.
The scammer grooms the victim over a period of time to go along with the scheme. They work to introduce context and involve the victim in the story. They isolate the victim from resources that might expose them, such as friends and family. Once the topic of money is introduced, a short deadline is given. This is a tactic used to induce panic in their victims so that the victim is unable to think clearly and is more likely to follow through on giving them money. Friends and family have not been exposed to the scammer’s grooming techniques, and are more likely to recognize the scam for what it is. If someone you haven’t met in person requests money and implies or requests that you should not tell your friends or family about it, consider this the biggest and final red flag. Take time to investigate the validity of the claim before you move forward.
What should I do?
To avoid scams or to reduce the impact of scams, be aware of how scams work and follow basic internet safety.
Never send money to someone you don’t know. This includes cash, cheques, e-transfer, money transfer, wire transfer, cryptocurrency, electronics for resale, etc. Additionally, if someone asks you to send or receive money or its equivalent for them, DO NOT ACCEPT. This may be money laundering, which is illegal and will render you complicit in a scam.
Don’t give out your personal information. Check to see what information you have on social media or on the internet. How public is that information? Could that information be used for any of your security questions? Take care to shred any physical documentation with personal information, such as bills or prescription bottles. Watch out for your friends and family as well, and avoid sharing their personal information even if you think the platform is private. Remember, the more personal information a scammer can collect, the easier it is for them to misuse that information.
Change your passwords. If you suspect your account info has been leaked or you’ve been hacked, change your passwords. Use stronger passwords and avoid repeating them across sites. You may also enable 2-factor authentication to help reduce the ability of scammers to hack into your accounts.
Be aware of how scammers work. They collect as much information about you as they can, they get you invested emotionally, and then they ask for money. They provide the links, etc. to send them money directly, or they may collect enough personal information about you that they can commit identity theft or fraud using your information.
Always verify the seller/person before you send any money, especially online. Time sensitivity is a red flag. If you feel rushed or like you’ll be judged for sending money to someone, consider that a severe red flag. Talk to a friend or family member. Look up the account and resource the seller is offering you through your browser or on the official accounts. Don’t send money unless you’re certain it checks out. Peace of mind is worth the extra few minutes, and real people and businesses will understand your caution.
Be informed of how sales and payment methods actually work. Government agencies have agency-specific portals to communicate private information. Banks wait for you to come to them. Computer software will simply run out. Most agencies will send an email or a paper letter requesting you to log into your account (do so through your browser, not the link provided) to access private information. They will not call you, nor will they ask for personal information like passwords or PIN numbers in their correspondence.
Check for conflicting information. When talking to someone new to you, does their profile information line up with what they’ve told you? If you do a reverse image search of your person of interest, what shows up? In emails, does the sender’s email address make sense? Are you expecting email or correspondence from this agency? Are the logos and links legit? When clicking links, does the domain look correct? If at any point you notice red flags, proceed with caution.
Avoid clicking on links you’re not expecting. If they reached out to you, the links may not be legit and may contain malware or viruses. You can use your mouse to hover over links to see what the address is. For extra security, make a habit of typing company links yourself in your web browser, rather than clicking on the link from the chat or the email source.
Monitor your apps on your phone and computer and watch for sudden lags, spikes of data usage, etc. that might indicate someone else may be accessing your device. Scammers can access your device through fraudulent apps, or by getting you to click on fraudulent links. Use anti-virus software whenever possible and keep your devices up to date.
Use a burner email address for social media or dating sites. That way if your account is compromised, it won’t be connected to your bank or personal information.
I didn’t catch it in time. What do I do now?
If you suspect you’ve been scammed, your top priority is not to worry about the scammer but to recover your safety.
Stop talking to the scammer. Don’t let them collect further information about you and don’t let them pressure you into changing your mind. Take this opportunity to collect as much information about the scammer as you can. Collect screenshots, IP addresses, photos and “personal” information, contact information like phone numbers or emails, etc. Do not tamper with this evidence, but the more information you can collect, the more information investigators will have to work with.
Report the incident to your local police and your federal anti-fraud agency. In Canada, you’ll report it to the Canadian Anti-Fraud Centre; in the US you’ll report it to the Federal Trade Commission. The case jurisdiction will be based on the victim’s location, not the scammer’s or the agency they claim to represent. You can report the scam in someone else’s stead, but information from the victim will be the most valuable for investigators.
If you sent money and/or your personal information was compromised, report it to the relevant organizations. If you shared your bank information, contact your bank. If you shared credit card information, talk to the credit card company. If they collected your phone number, contact your phone company. If the scammer knows your email address or your social media info, change your passwords. If you sent money via PayPal or Western Union, etc., contact those companies and see if the transfer can be canceled before completion. Contact the platforms you communicated on to alert them that the account is a scam account. All of these agencies and companies are well versed in dealing with scammers and personal information, and they will have procedures in place to help you recover your safety.
Consider reaching out to victim services. Scams can be emotionally or financially devastating and it can be hard to know how to cope or what to do next. Romance scams have the additional devastation of heartbreak to deal with as well. Gathering resources and support earlier in the process can help make recovery more complete in the long run.
Unfortunately, most scammers are difficult to catch. However, reporting scams can help empower victims as well as enable agencies to gather and collaborate information about scams and eventually catch scammers. Scammers may be working across international lines, so combatting scams requires international collaboration. Many international agencies are working together to collect and corroborate information, such as police forces working with federal forces, and federal forces working with their international counterparts. Whenever possible, cyber forensic experts may be enlisted to look for digital footprints, data breaches, etc. Regardless, when reporting scams, victims will want to be able to give as much information as possible about the type of crime, the source of the attack, the date the scam occurred, and as much information about the scammer as possible.
Falling for a scam is not an indication of intelligence, but an indication of a hole in the system that the scammer is exploiting.
Stay informed, stay up to date, and stay connected. Sharing your story means that someone else won’t have to go through the same heartache.
Resources:
“Report Fraud and Cybercrime” by the Canadian Anti-Fraud Centre. https://www.antifraudcentre-centreantifraude.ca/report-signalez-eng.htm
“FTC Report Fraud” by the Federal Trade Commission. https://reportfraud.ftc.gov/#/
“Distort, Extort, Deceive and Exploit: Exploring the Inner Workings of a Romance Fraud” by Elisabeth Carter. The British Journal of Criminology, Vol. 61, Issue 2, pages 283-302. March 2021. https://doi.org/10.1093/bjc/azaa072.
https://academic.oup.com/bjc/article/61/2/283/5959932
“What You Need To Know About Romance Scams” by the Federal Trade Commission. June 2019. https://consumer.ftc.gov/articles/what-you-need-know-about-romance-scams
“Your Phone Number is Out There? What Can Someone Do With Your Phone Number” by David Lukic. ID Strong. March 23, 2021. https://www.idstrong.com/sentinel/your-phone-number-is-out-there-what-can-someone-do-with-your-phone-number/
“How to Avoid Online Scams” by Norton. No date. https://ca.norton.com/internetsecurity-online-scams.html