Common online financial scams to keep an eye out for
Written on the 11 April 2018 by Arrow
They say that crime never sleeps, and neither does the internet especially when it comes to money-related scams, including identity theft, fake financial schemes, and more.
The good news is that improved research and information-sharing between international agencies is already helping us catch up. Now that 2018 is well underway, we're starting to see a lot of really interesting data come in from regulators and researchers on 2017's worst financial scams and identity theft crimes. Their reports are full of insights and tips that could save you from falling victim to a scam in the near future.
Here are two of the most common and damaging scams
Remote access scams are when someone phones you pretending to be from your phone company, internet service provider, or a software provider. They might claim that your computer is "sending out error messages", or that they've "detected a hack". Then and this is where the 'remote access' part comes in they say they need remote access to your computer to fix the issue for you. This may involve you downloading software or clicking a link they send you.
The main thing to remember about these calls? Major telcos and software companies are well aware of remote access scams. Which is why they'll almost never call you to report something. And they'd certainly never ask for personal details, let alone payment. If you're concerned and think a notification call may be genuine, hang up and call back the main 13 number your phone or internet provider has given you. Once you've completed the usual security checks, a customer service agent will generally be able to tell you if the company has genuinely tried to contact you.
Card not present
The simplest way to avoid becoming a victim of CNP fraud is not having your important card details physically written down anywhere. Don't even text or email your card details to your spouse or kids; you never know who could be intercepting messages. Consumer advocates CHOICE also recommends checking your account regularly for suspicious activity.iii Many banks and card providers have systems set up to detect unusual activity, such as random purchases on the other side of the world minutes after purchases at home. But they don't always pick up scammers' activity if it's local. For example, someone who's stolen your card details could be making small purchases around your city that don't look odd to a bank's security algorithm. What's more, multiple small transactions may be less likely to trigger a security response. Logging in to your banking app and checking the last few transactions every day or two could help prevent a string of frauds depleting your account.
Remember, if you're concerned about fraudulent activity or access to your account, call your bank immediately. You can report scams to the police, to ScamWatch, or to your state/territory's consumer affairs authority.
For more information about other ways to avoid scams and stay safe online you can visit: https://www.tal.com.au/security.