The FBI recently reported that online crime more than doubled from 2008 to 2009. Total consumer losses leaped from $264.6 million to $559.7 million, with business losses in the billions. With new scams appearing daily, it's important to stay current and learn to spot the signs of bogus opportunities and dishonest deals.
Here are some you need to watch out for:
The "Army Love Scam"
Con artists from countries such as Nigeria and Ghana will often pose as U.S. soldiers looking for dates or mates, while using phony photos and personal information as bait. When they've won their victim's trust, they ask for funds for laptop computers ("to keep in touch while I'm in Afghanistan"), medical treatment, travel expenses, or to meet some other sympathetic need.
The scam became so widespread that the Army's Criminal Investigation Command (CID) recently issued an alert. Victims may file a complaint with the CID at http://www.cid.army.mil.
Craigslist "Low-Priced Vehicle" Scams
A growing number of "low-priced vehicle for sale" scams have victimized many would-be buyers on Craigslist. Here's how the scam works: An attractive car is offered at an irresistibly low price. The seller gives a convincing reason why the car must be sold so cheaply -- he's leaving for duty in Afghanistan, or she recently got a divorce and must raise money, or a parent died and the car must be disposed of.
The catch is that funds must be wired so the car can be shipped to the buyer. But once the funds are sent, they're gone for good. The car never appears, and the seller disappears.
"Scareware" Scams
If you land on a website and a pop-up alert tells you your computer is infected and you must scan it now to clean it, chances are you're looking at scareware.
Typically, you'll be asked to pay for "anti-virus software" (usually less than $100) to take care of the alleged virus. But the software contains malicious code to steal financial information from your hard drive, or log passwords as you use your keyboard. Instead of taking care of the virus, it takes you to the cleaners.
Scareware is a big industry worldwide. In fact, it's grown so much that the FBI has reportedly embedded agents in countries such as Ukraine to help stamp it out. Until then, you can protect yourself with free or low-cost tools such as Malwarebytes' Anti-Malware.
Work-at-Home Scams – "Auction Listing Specialists"
Scammers often recycle their most profitable con games, after waiting a bit for a fresh "victim pool." One such scam, seeking "eBay Auction Listing Specialists," is making the rounds now. The scam offers home-based "jobs" to those willing to pay for "training and mentoring." In reality, the "jobs" are for self-employment as affiliate marketers, and you'll be required to pay for advertising, too.
Some Scam-Spotting Tips
Con artists often snare their victims with phony testimonials, dressed up with generic or "stock" photography. (We assisted ABC News 20/20 in exposing "testiphonials" in their segments on work-at-home scams last year.) To see whether testimonial photos are authentic, use free tools such as TinEye.com, which can tell you where photos come from online. (Many scam photos are taken from iStockphoto.com.)
Beware of recurring credit card fees, too, frequently hidden in bleached-out text at the bottom of web pages. These texts may also include fees stated in words rather than numerals, to make them harder to spot. For more tips and alerts on scams, see our Rat Race Rebellion Scam Alerts page.
Here are some you need to watch out for:
The "Army Love Scam"
Con artists from countries such as Nigeria and Ghana will often pose as U.S. soldiers looking for dates or mates, while using phony photos and personal information as bait. When they've won their victim's trust, they ask for funds for laptop computers ("to keep in touch while I'm in Afghanistan"), medical treatment, travel expenses, or to meet some other sympathetic need.
The scam became so widespread that the Army's Criminal Investigation Command (CID) recently issued an alert. Victims may file a complaint with the CID at http://www.cid.army.mil.
Craigslist "Low-Priced Vehicle" Scams
A growing number of "low-priced vehicle for sale" scams have victimized many would-be buyers on Craigslist. Here's how the scam works: An attractive car is offered at an irresistibly low price. The seller gives a convincing reason why the car must be sold so cheaply -- he's leaving for duty in Afghanistan, or she recently got a divorce and must raise money, or a parent died and the car must be disposed of.
The catch is that funds must be wired so the car can be shipped to the buyer. But once the funds are sent, they're gone for good. The car never appears, and the seller disappears.
"Scareware" Scams
If you land on a website and a pop-up alert tells you your computer is infected and you must scan it now to clean it, chances are you're looking at scareware.
Typically, you'll be asked to pay for "anti-virus software" (usually less than $100) to take care of the alleged virus. But the software contains malicious code to steal financial information from your hard drive, or log passwords as you use your keyboard. Instead of taking care of the virus, it takes you to the cleaners.
Scareware is a big industry worldwide. In fact, it's grown so much that the FBI has reportedly embedded agents in countries such as Ukraine to help stamp it out. Until then, you can protect yourself with free or low-cost tools such as Malwarebytes' Anti-Malware.
Work-at-Home Scams – "Auction Listing Specialists"
Scammers often recycle their most profitable con games, after waiting a bit for a fresh "victim pool." One such scam, seeking "eBay Auction Listing Specialists," is making the rounds now. The scam offers home-based "jobs" to those willing to pay for "training and mentoring." In reality, the "jobs" are for self-employment as affiliate marketers, and you'll be required to pay for advertising, too.
Some Scam-Spotting Tips
Con artists often snare their victims with phony testimonials, dressed up with generic or "stock" photography. (We assisted ABC News 20/20 in exposing "testiphonials" in their segments on work-at-home scams last year.) To see whether testimonial photos are authentic, use free tools such as TinEye.com, which can tell you where photos come from online. (Many scam photos are taken from iStockphoto.com.)
Beware of recurring credit card fees, too, frequently hidden in bleached-out text at the bottom of web pages. These texts may also include fees stated in words rather than numerals, to make them harder to spot. For more tips and alerts on scams, see our Rat Race Rebellion Scam Alerts page.
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