The online world has infiltrated almost every area of our daily lives. From controlling our homes through smart devices to planning our calendars and routes and assisting with our days, connected devices help us live in the modern digital age.
As the ways we use the internet has evolved and grown, so has the way that those with ill intent prey on innocent targets. Today, online scams are as much a part of the internet as social media and various types of entertainment content.
We looked into which online scams are the most common, where they originate from, and how they affect those they target. As knowledge about these scams can help you realize if you’re being targeted, keep reading to learn what thieves are using to try to hack others.
Common Forms of Online Scams
Phishing
When it comes to online scams, none is as popular or enduring as the common phishing scam. First used in the mid-1990s, the term has become synonymous with online scams and was one of the first to gain mass attention and adoption. Some of the earliest cases of phishing were of technological giant America Online (AOL) in 1995.
One reason phishing is so popular is its simplicity. Hackers or thieves use legitimate-appearing websites, emails, or text messages to prey on people. These are spoofed to look like they are real, even though it is all a ruse.
The aim of these messages or websites is to trick innocent victims into revealing personal information that the attacking party can later use. This information can range from login details or approvals to personal information such as credit card info or identifying details.
Another unique aspect of phishing is that it is not limited to certain parties. The tactic is used by nation-state actors, criminal groups, and individuals alike. When successful, phishing attacks can have serious repercussions, such as financial loss, data breaches, identity theft, or reputation damage.
419 Scams
Also called the Nigerian Prince scam, 419 scams are in reference to section 419 of the Nigerian Criminal Code. These scams are among the oldest, existing even before the internet. Initially using postal services to carry out scams between the 1970s and 1980s, 419 scams multiplied when email was widely adopted in the 1990s.
Taking the form of an email claiming to come from a Nigerian dignitary or official, these scams claim that the scammer needs help in transferring large sums to an outside country. For a target’s willingness to assist, a portion (often significant) of this money is promised as payment. However, the target must first pay the scammer an initiation or service fee to begin the process.
Once this money is paid, the scammer may or may not continue, either disappearing with the money they already stole or stating that more money is needed as unforeseen expenses in transferring the money have arisen. This tactic has seen many people internationally lose their life savings and has had substantial financial implications.
One thing to note about 419 scams is that while they are commonly associated with Nigeria because of their name, they are conducted worldwide. While Ghana and Nigeria remain hotspots, many European countries have also been found to have threat actors engaging in these scams.
Ransomware
Ransomware is not only among the fastest-growing types of online scams, but it is also among the most brutal and devastating to companies and individuals. Incredibly, the first ransomware, like the 419 scams, predates the internet and started spreading via floppy disks in 1989. Called the AIDS Trojan, this early ransomware waited until a PC had booted 90 times and then encrypted it.
Modern ransomware, which is much more sophisticated, is often deployed alongside phishing scams. Phishing is used to get people to click a link or download a file, infecting them. Once infected, the ransomware encrypts a PC’s hard drive and data and demands payment (in the form of crypto since 2009) to unlock the PC.
This type of scam and infection has been responsible for some of the largest cyberattacks in recent years, including the WannaCry and CryptoLocker incidents. Worse still, ransomware is used by various threat actors, from state-sponsored to individuals. RaaS (ransomware-as-a-service) has also grown in popularity, making it easier for hackers to scam more innocent people.
Romance Scams
Romance scams, which became popular among scammers in the early 2000s, seek to exploit the human desire to interact with others in a romantic manner. As the online dating industry began expanding, these types of scams became more prevalent, with scams like Yahoo Yahoo gaining wide attention.
To perpetrate these scams, scammers create fake profiles on dating websites or social media. They then reach out to potential targets, pretending to be someone looking for a love connection who happened to see the targets’ profiles and was interested in them.
Unlike other scams that are fulfilled relatively quickly, romance scams often take longer as scammers gain victims’ trust by speaking to them continuously and sharing fake lives together. Once enough trust has been earned, the scammer frequently has various emergencies that always require additional funds.
Asking for money commonly continues until the victim has nothing left or refuses to send more. When this occurs, the scammer moves on to other targets, leaving the victim in financial distress in some instances. Romance scams work so well that the FBI reported in 2021 that more than $1 billion had been stolen from victims in the US, growing to $1.14 billion in 2023.
Key Takeaways
The four scams mentioned above are just some of the many circulating the internet today. Understanding these scams and searching for quality educational information on them the same way an online gambler may look for a good RTP to be over 96.5% before playing is one of the best ways to ensure that you don’t fall prey to them.
In addition to saving yourself from financial losses by knowing how to recognize these scams, understanding variants like romance scams can also help save you from heartache, and understanding phishing can save you from the disastrous effects of identity theft.