How To Avoid Online Scams and New AI Scams

Learn about the types of online scams and how to avoid online scams and frauds. Discover how to protect yourself from AI scams and stay safe online.

With the digital world expanding rapidly, online scams and frauds have become more prevalent, targeting people of all ages and backgrounds. Scammers exploit technology to devise sophisticated frauds, costing victims billions of dollars each year.

The key to staying safe online is knowing what to look for, from romance scams to cryptocurrency frauds. This article provides a comprehensive look at types of online scams, new AI scams, and detailed tips to avoid online scams and protect yourself effectively.

What are Online Scams?

An online scam is a deceptive act performed over the internet, aiming to deceive people into sharing personal information or money.

These scams take various forms, appealing to victims’ emotions or desires, like fear, excitement, or love. By understanding these schemes, you’ll learn to recognize and avoid some of the most common online scams.

8 Common Online Scams in 2023 and 2024

Let’s dive into some of the top online scams you should be aware of, with real-world examples to illustrate their impact:

#1. Phishing scams

Phishing remains one of the most common online scams. It involves fake emails, texts, or phone calls that appear to be from trusted sources, urging victims to click on links or share sensitive information.

Example: The Beacons.ai scams reports relate to phishing and fake accounts impersonating Beacons.ai or creating misleading profiles to deceive users into sharing personal information or making payments.

In another example, in 2023, a large-scale phishing scheme impersonated the IRS, sending emails claiming unpaid taxes and prompting recipients to provide personal information. The fraudulent website collected Social Security numbers and bank details, leading to identity theft for thousands.

#2. Bitcoin & cryptocurrency scams

Bitcoin and other cryptocurrencies are prime targets due to their decentralized, unregulated nature. Cryptocurrency fraud has surged, with scammers luring victims through fake investment platforms or impersonating reputable exchanges.

Example: In 2023, a scam circulated on social media where fake Elon Musk accounts promised massive returns for small Bitcoin investments. Many users transferred Bitcoin, expecting returns, only to lose all their funds.

#3. Romance & dating scams

Romance scams take advantage of people looking for companionship online. Reports of romance fraud have risen by almost 60% over four years.

Scammers build relationships, often spanning months, before concocting a reason to ask for money, claiming emergencies or travel expenses. The Netflix movie, The Tinder Swindler, was based on the stories of victims of a dating app-based swindler.

Example: A 2024 report highlighted a romance scam in which a woman lost over $500,000 to a scammer claiming to be an engineer working abroad. After months of online communication, the scammer requested funds for a “medical emergency,” and the victim sent the money.

#4. Tech support scams

Scammers call or message victims, posing as tech support from reputable companies like Microsoft or Apple. They claim the user’s device has a virus or security breach, urging the victim to install malicious software or pay for unnecessary services.

Example: In 2023, the FBI warned of a surge in “Phantom Hacker” scams targeting seniors, where scammers impersonate tech support and financial institutions to gain trust and access to victims’ funds. Losses totaled over $542 million, with nearly half of victims over 60 years old.

#5. Fake online stores & shopping scams

Online shopping scams usually involve fake websites or ads selling high-demand products at low prices. Victims make purchases, but their items never arrive, or worse, their payment details get stolen.

Example: During the holiday season of 2023, a scam involving a fake designer goods website went viral. Thousands of shoppers paid for luxury items that were never delivered, losing both money and payment details.

#6. Lottery & prize scams

These scams lure victims with the promise of a “big win” or a lucrative prize that can only be claimed after paying a fee. They often use official-looking emails or phone calls to convince victims.

#7. Job scams

Job scams advertise high-paying roles that require a fee for training or application. Once payment is sent, the scammer vanishes, and no job exists.

#8. Investment & Ponzi scams

Scammers promise high returns on investments, luring victims to deposit money into fraudulent “investment” accounts. These can be Ponzi schemes, where initial investors are paid with funds from newer investors until the scam collapses.

How To Protect Yourself from Online Scams

Avoiding online scams requires vigilance, skepticism, and the right tools. Here’s a detailed breakdown of how to protect yourself from online scams:

#1. Verify the source of information

Verifying the source is crucial to ensure the information or request is legitimate, protecting you from falling victim to impersonation scams and misinformation.

• Tech Support: Only allow remote access to your computer if you initiated the contact and are certain of the individual or company’s legitimacy. Always confirm the identity of anyone claiming to represent a tech support firm by reaching out directly using a trusted phone number.
• Emails and Texts: Avoid clicking links from unverified emails, especially if they ask for personal information. For company communications, visit the company’s official website and contact them directly to confirm the message.
• Social Media: Be cautious about requests or claims on social media, especially if they come from new or unfamiliar accounts. Scammers often create fake profiles to lure in unsuspecting users.

#2. Stay updated on the latest scams

Awareness of top online scams and their tactics can help you identify and avoid fraud. Search for “online scams 2023” and “online scams 2024” on Google to learn about the latest online scams and fraudulent activities.  Subscribe to updates from consumer protection agencies like the FTC or the IRS, which regularly warns about the latest scams.

#3. Avoid oversharing data online

Avoid oversharing on social media, as scammers may use your information to create targeted attacks. Information like your birth date, location, and job title can make you more vulnerable to phishing or impersonation.

#4. Use strong passwords & 2FA

A strong, unique password is your first line of defense. Avoid using the same password across multiple sites and enable two-factor authentication (2FA) where possible to protect your accounts.

Use tools like the Roboform Password Manager to stay secure by creating strong and unique passwords for each site. You can add verification codes to RoboForm Authenticator via a QR scan, add a key, or import from other authenticator apps.

#5. Use computer security tools

Keep your system updated and install antivirus software like Advanced SystemCare Ultimate. It defends against viruses, spyware, and ransomware, securing personal data from unauthorized access.

It also enhances browsing safety with email protection, ad removal, and anti-tracking, while optimizing system speed by cleaning junk files, managing startups, and boosting internet speed.

Download a free tool like IObit Malware Fighter to detect a wide array of spyware, ransomware, adware, Trojans, worms, keyloggers, and bots. It can also stop ransomware from attempting to break into your computer or encrypt your important files and block unauthorized access to your private data.

Consider using a Virtual Private Network like Atlas VPN, especially on public Wi-Fi networks, to prevent cyber criminals from intercepting your data. It encrypts your online activities with safeguards against ISP detection, ensuring consistent connection speeds and privacy.

#6. Verify before transferring money

This is especially crucial in romance scams and dating online scams. If someone you’ve only met online asks for money, it’s a major red flag. Avoid transferring money, especially through wire transfers, cryptocurrency, or gift cards, which are difficult to trace.

#6. Beware of “too good to be true” offers

Scammers frequently offer deals that seem far too good to be legitimate. Trust your instincts and research thoroughly. Remember, if something feels “off” or too good to be true, it probably is!

Do your research before deciding, whether it’s a job offering thousands of dollars for minimal work or a luxury item at a fraction of its usual price.

#7. Check financial & bank accounts regularly

Never share your bank login or credit card information with telemarketers. Monitor bank and credit card statements regularly to detect unauthorized transactions. Setting up alerts on your accounts can notify you of suspicious activities in real time.

Use a tool like Atlas VPN to protect sensitive information from threats and unauthorized access and monitor financial accounts for suspicious activities to enhance online security.

#9. Choose secure payment methods

Purchasing from legitimate sites like Amazon rather than unknown brands can help avoid online shopping fraud. When shopping online, use payment methods with buyer protection, like credit cards or trusted payment processors. Avoid direct bank transfers, as these offer minimal recourse if scammed.

#10. Seek legal advice

If you suspect you’re a victim of fraud, consult a lawyer for online scams. They can help you report the scam to authorities and recover losses if possible.

Top Possible AI Scams in the Next 5 Years

Over the next five years, several potential AI scams may become more prevalent as technology advances and becomes more accessible to malicious actors. Here are some of the top possible AI scams in the next 5 years:

#1. Deepfake scams

Scammers use deepfake technology to create realistic audio and video impersonations of individuals. They can impersonate friends or family to solicit money or sensitive information. The ability to manipulate video calls can lead to significant emotional and financial harm.​

#2. AI-enhanced romance scams

Romance scams are becoming more sophisticated with AI chatbots that can simulate human conversation and build rapport with victims. These scams often involve fake profiles created using stolen images and information, making them difficult to detect​.

#3. Investment & giveaway scams

Scammers are leveraging deepfake technology to create fraudulent celebrity endorsements, promoting investment opportunities that are too good to be true. This includes fake giveaways that can lead victims to malicious websites or steal personal information.​

#4. Phishing attacks using AI

AI can craft persuasive personalized phishing emails and messages. These scams may appear legitimate and trigger victims to click harmful links or provide personal information.​

#5. Fake charity scams

AI-generated images and narratives can create compelling yet fraudulent appeals for donations, particularly in the aftermath of disasters. Scammers may exploit public sympathy to solicit funds for non-existent charities​.

#6. Voice cloning scams

With advancements in voice synthesis technology, scammers can mimic someone’s voice to deceive targets, making calls sound legitimate. This can be particularly dangerous in situations involving financial transactions.​

How To Protect Yourself from AI Scams

As AI scams are on the rise, it’s crucial to recognize the various forms they can take, including voice cloning AI scams and deepfake AI scams.

Always check the authenticity of any content you receive.  These scams can manipulate audio and video to create convincing but fraudulent content, often leading to significant financial loss or identity theft.

To protect yourself from AI scams, consider the following:

• Check for AI-generated Content: Look for specific indicators such as watermarks or logos, visual artifacts, like distorted facial features or unnatural movements, and inconsistencies in voice tone or background noise that may suggest manipulation.
• Unique Passphrase: Request a specific safe word, password, phrase, or fact from the sender that only a legitimate source would know.
• Watch for Red Flags: Be cautious of unsolicited messages, especially those that urge immediate action or request personal information.
• Stay Informed: Keep up with AI scams news to understand the latest tactics and how to avoid them. Follow discussions around new AI scams and trends in AI scams on Facebook and other social media websites to stay ahead of potential threats.

By being vigilant and informed, you can protect yourself from the dangers of AI scams and the evolving landscape of digital fraud.

How to Spot a Bitcoin or Cryptocurrency Scam

Bitcoin and other cryptocurrencies have become prime targets for online fraudsters. Here’s what to watch for:

• Promises of Guaranteed Returns: Any claim that you’ll earn a guaranteed profit from cryptocurrency is a red flag.
• Fake Celebrity Endorsements: Scammers often fake endorsements from celebrities to seem legit. Double-check any investment opportunity with official celebrity accounts or websites.
• Pressure to Act Quickly: Scammers often use urgency to push people into hasty decisions. Always take time to research before investing in cryptocurrency.

How Generations Differ in Online Scam Vulnerability

So, which generation is more likely to fall for online scams, baby boomers or Gen Z? A 2023 study found that Gen Z is more likely to fall for online scams than baby boomers.

This is often attributed to Gen Z’s familiarity with technology, which can lead to overconfidence. Meanwhile, baby boomers though less tech-savvy, tend to approach online transactions more cautiously.

The Art of Intelligence MasterClass with Former CIA Officers

Learn CIA-approved techniques for reading people, spotting red flags, and building trust to protect yourself better in this MasterClass by three former CIA officers who share insights on leadership, critical thinking, and risk management.

Learn from experts Brian Carbaugh, Michael Morell, and Dawn Meyerriecks as they reveal how to use persuasion tactics, reframing arguments, empathy, and active listening to foster loyalty and close deals.

This two-part series teaches risk assessment, relationship building, and critical thinking skills, equipping you to lead with respect, inspire trust, and succeed professionally.

Click here to preview this MasterClass

Learning how to avoid online scams is essential as digital fraud grows in sophistication. Whether it’s phishing, dating, or Bitcoin scams, a cautious approach can help you navigate the online world safely.

By staying informed, using caution, and employing proactive security measures, you can better protect yourself and avoid becoming a statistic.

---

© 2024, Priya Florence Shah. All rights reserved.