5 common scams and how to detect them

From an email promising an extravagant prize to an enticing online offer that seems too good to be true, scams have become a part of life as we spend more time online. It doesn’t help that many of them are more sophisticated and trickier to detect than ever before.

This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.

By knowing what some of the most common online scams may look like, you can become a savvy detector and help protect yourself from falling into their traps.

This article explores some of the most common scams and how you might spot them.

Common scams and what they may look like

While some scams can be spotted easily — like princes in distant lands offering their riches — you might be surprised by how far some cybercriminals will go to trick you into handing over your money or personal information. They might pose as a family member, a trusted charity, a financial adviser, or even your government’s tax authority.

From romance scams to retail fraud, scams can happen across almost all industries. Here are some of the most common online scams to be aware of:

Phishing scams

In some of the most common phishing emails, fraudsters will typically masquerade as trustworthy entities — such as reputable organisations, banks, or even friends — to trick unsuspecting individuals into divulging sensitive information or unwittingly downloading malicious software.

These tips can help you avoid phishing:

• Be cautious of unsolicited emails or messages, particularly those requesting personal or financial information.
• Verify the authenticity of the sender by independently contacting the organisation through official channels rather than clicking on provided links.
• Pay attention to the website's URL. Look for the secure "https://" prefix and double-check the domain name for any variations or misspellings that could indicate a fake site.
• Be wary of websites that prompt you to enter sensitive information without a legitimate reason or appear unprofessional and poorly designed.
• Report fraud or any instance of suspicious activity.

Messaging scams

Also known as “smishing", messaging scams are another type of phishing that occur through text messages, social media platforms, or messaging apps.

In these cases, scammers may employ urgent or alarming scenarios, pretending to be from a bank or a trusted institution, aiming to create a sense of urgency that prompts you to disclose confidential information without proper verification. Not sure if a message is legitimate? Never give out personal or financial information and always report suspicious messages.

Dating and romance scams

As many people seek relationships online, dating scams have become increasingly common. By creating fake profiles on dating websites or social media platforms to establish romantic connections, scammers gain trust and affection before asking for money or personal information.

To help yourself avoid online dating scams, never share personal details or send money to someone you've met online without verifying their identity.

Insurance scams

Insurance scams can target anyone and might occur across all types of insurance, from travel to health. They may offer bogus insurance policies or fake claims to swindle money from unsuspecting individuals.

Be sceptical of unsolicited offers and always verify the legitimacy of the insurance provider before sharing any personal or financial information.

Charity scams

Some of the most common fraud schemes come in the form of charity scams. Designed to take advantage of people's goodwill, scammers pretend to represent charitable organisations to collect funds for important causes.

It's a common type of fraud that aims to manipulate your emotions, so you donate money or provide personal information. To help protect yourself from the most common scams, research any organisation before donating.

How to spot a common scam

Detecting a scam is crucial in protecting yourself. If anyone is trying to gather your personal information or ask for money — whether it's to pay a fee or offer you something for free — question it.

Most common fraud schemes employ similar tactics. Here are some tips to help you spot the most common internet scams:

• Check the email and verify the sender. Most common types of fraud will use email addresses or phone numbers that look like legitimate companies. Look up and visit the company's website or contact them directly to verify the contact information.
• Research the company. If you receive an unsolicited communication, visit their website or contact the company directly using verified contact information.
• Remember: If something seems too good to be true, it probably is. If you've won something unexpectedly, met your dream partner online (but never met them), or have been approached to take an amazing job, always do your due diligence before providing your information or making a payment.

What to do if you think you've spotted a scam

If you think you've encountered a scam, here are some steps to help protect yourself:

• Do not respond to suspicious emails or texts.
• Do not click on any links in emails or messages.
• Never provide personal information, like credit cards, banking details, or passwords.
• Report the scam.
• Get in touch with the company and report fraud.

Knowledge can be a strong defense against scams. Stay alert, trust your instincts, and always verify the authenticity of any suspicious communication. With the right precautions, you can take steps to protect yourself against scams.

Learn more about scams and phishing.