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 annually.

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.

10 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 and urges victims to click on links or share sensitive information.

Phishing-as-a-Service (PhaaS) allows criminals to offer phishing kits and services that let anyone launch phishing attacks without technical knowledge, making it easier for scammers to target large numbers of people.

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. 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.

QR codes have been widely used in cryptocurrency transactions, as they make it easier to share wallet addresses. Scammers take advantage of this by creating QR codes for fake crypto investments, giveaways, or “support” accounts.

In one recent scam, users were told they could double their Bitcoin by scanning a QR code and sending funds to a specific wallet, only to lose their money.

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

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

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 and urge 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. In these scams, scammers impersonate tech support and financial institutions to gain trust and access to victims’ funds. Losses totaled over $542 million, and nearly half of victims were over 60 years old.

#5. QR code scams

QR code scams have become an issue as scammers exploit their convenience and trustworthiness. QR codes can direct users to websites, download apps, or make payments. However, malicious QR codes can lead to phishing sites, install malware, or initiate unauthorized payments, often without the user realizing it.

Example: In several cities, scammers have been placing fake QR codes on public parking meters. When people scan these QR codes, they’re directed to a fake payment website that collects their credit card information. Cities like San Antonio and Austin have reported these types of QR scams targeting drivers looking for quick, contactless ways to pay.

#6. E-commerce 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.

#7. Job & remote work scams

As remote work opportunities expand, job scams have become more common. Scammers also post fake job openings, conduct bogus interviews, and request “application fees” or personal information. Some scams involve sending counterfeit checks, which bounce after victims deposit them.

Some work-from-home scams claim you can earn substantial income by stuffing envelopes, assembling products, data entry, or other simple tasks, usually requiring an upfront fee for supplies or training. Once payment is sent, the scammer and fake job vanish.

Protection tip: Be wary of job offers that require payment upfront. Research the company and seek out legitimate job listings.

#8. Investment & Ponzi scams

Scammers promote fake investment opportunities in stocks, cryptocurrencies, or real estate, often promising unusually high returns with little risk. These can be Ponzi schemes, where initial investors are paid with funds from newer investors until the scam collapses.

Others lure victims to deposit money into fraudulent “investment” accounts. Some investment scams use online seminars and webinars to lure people into bogus opportunities, such as real estate or stock “tips,” which often require an upfront fee or commitment.

Protection tip: Always do your due diligence, conduct research, verify the legitimacy of the investment, and consult with reputable financial advisors before committing any funds.

#9. Online rental scams

Scammers post fake rental listings with attractive prices and request a deposit to secure the rental. Fake QR codes have been found on “For Rent” and “For Sale” signs in some areas. Scammers use these codes to lead prospective renters or buyers to fake websites that ask for deposits or application fees.

These scams can be particularly effective, as they appear tied to real, visible properties, adding a sense of legitimacy. They often target people in high-demand markets and disappear once payment is made.

#10. 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.

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.
• Job applications: Always verify company information on reputable job boards or directly on company websites, and be cautious of jobs that require upfront payments or personal information.
• QR codes: Only scan QR codes from trusted sources, avoiding random ones on public signs. Watch for stickers covering official codes, as scammers may replace them. Avoid entering sensitive information after scanning, as legitimate sites rarely request it this way.
• Rental bookings: Only use reputable rental sites, avoid wiring money, and ask for an in-person tour or video call before making payments.

#2. Stay updated on the latest scams

Awareness of top online scams and their tactics can help you identify and avoid fraud. Subscribe to updates from consumer protection agencies like the FTC or the IRS, which regularly warns about the latest scams.

Search for “online scams 2023” and “online scams 2024” on Google to learn about the latest online scams and fraudulent activities.

#3. Take your privacy seriously

Taking your privacy seriously can protect you from scammers by reducing the amount of personal information they can access and exploit for identity theft, fraud, or targeted scams.

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

Covering your laptop camera when not in use is a good security measure. Here’s why:

• Prevent Unauthorized Access: Hackers can sometimes access your laptop camera through malware, allowing them to spy on you without your knowledge. Even well-known spyware and phishing attacks have targeted laptop cameras.
• Privacy Protection: Covering the camera ensures your privacy from potential visual monitoring. This is particularly important for sensitive settings like home offices or personal spaces.
• Minimizing Risks from Security Flaws: Occasionally, vulnerabilities in software or operating systems can be exploited to turn on your camera. Physical covers act as a final layer of defense, even if your laptop’s security is compromised.
• Common Practice Among Security Experts: Many cybersecurity experts and high-profile figures, like former FBI Director James Comey and Mark Zuckerberg, have been known to cover their laptop cameras. This highlights the importance of this simple but effective practice.

Using a physical cover (even a sticky note or tape) is an inexpensive way to add an extra layer of security, helping to prevent unauthorized recording and protect your privacy.

#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 through wire transfers, cryptocurrency, or gift cards, which are difficult to trace.

Use a QR code scanning app to preview a URL before visiting it. When making a payment, ensure the website has a secure (https) URL, as legitimate sites typically include this protection.

#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.

To enhance online security, use tools like Atlas VPN to protect sensitive information from threats and unauthorized access, and monitor financial accounts for suspicious activities.

#9. Choose secure payment methods

Check reviews, research the seller, and use secure payment methods to avoid fake shopping scams. Purchasing from legitimate sites like Amazon rather than unknown brands can protect you from 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. Do a background check

Hiring a private investigator for a background check is one of our top tips to avoid online scams, especially when dealing with unfamiliar people or businesses involving significant financial commitments or sensitive information.

• Romance/dating scams: For online relationships that are progressing quickly or when the other party requests financial support, hiring an investigator can help verify the identity, employment, and background, protecting against potential romance scams.
• Investment scams: When considering a large investment or buying high-ticket items from private sellers, such as luxury goods, vehicles, or collectibles, a private investigator can verify the credentials and track record of the individuals involved, uncovering any potential fraudulent history or red flags.

In these cases, a private investigator can provide peace of mind by thoroughly vetting individuals or businesses before you make a commitment, significantly reducing the risk of fraud.

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.

How To Avoid Get-Rich-Quick Scams

Falling for get-rich-quick scams online can lead to significant financial loss. Here are some common scams to be aware of, including those that thrive online:

• Multi-level marketing (MLM) schemes: MLMs promise high returns for recruiting others into a business model. While some participants may profit, most earn little to nothing, making it more like a pyramid scheme.
• Pyramid Schemes: Similar to MLMs, pyramid schemes focus on recruitment rather than selling a product, where profits are derived from the investments of new recruits rather than legitimate sales.
• Forex Trading Scams: Scammers promise quick profits through forex trading, often using complex trading systems that are difficult to verify.
• Real Estate Flipping Scams: These scams promote “too good to be true” real estate flipping opportunities, often requiring hefty upfront payments for training or property lists.
• Social Media Scams: Scammers use social media to promote fake get-rich-quick schemes, often using testimonials or influencer endorsements to appear credible.
• Gambling Scams: Some schemes promise guaranteed wins in casinos or online betting, often requiring upfront fees for “winning strategies” that are never delivered.
• Cash Gifting Schemes: Participants are promised wealth in exchange for making payments to others in the group, with the idea that they will receive funds from new recruits.

Conduct thorough research on any business opportunity, focusing on legitimacy and revenue sources. Be wary of guarantees of profit, recruitment-focused models, and unsolicited offers, and do a background check to verify the credentials of any educators or brokers.

• Do Your Research: Always investigate any opportunity before committing. Look for reviews, ratings, and complaints from others.
•  Trust Your Instincts: If an offer sounds too good to be true, it probably is. Be cautious and skeptical of claims that promise easy wealth.
• Ask Questions: Legitimate opportunities will provide clear answers to your questions. Scammers often evade inquiries or provide vague responses.
• Avoid High-Pressure Sales Tactics: Scammers often create urgency to rush you into a decision. Take your time and evaluate the opportunity carefully.
• Consult Professionals: If in doubt, consult with a financial advisor or trusted individuals who can provide objective advice.

By staying informed and cautious, you can protect yourself from the pitfalls of get-rich-quick scams online.

Best Online Safety Courses

Enhance your cyber-safety skills with the best online safety courses, including those offering certificates, designed to help you stay safe online.

#1. Phish Busters: The Art of Spotting a Scam

This course teaches you to identify phishing emails and common social engineering tactics. Develop a mindset to recognize malicious attacks via email, phone, and in person, understand their mechanics to effectively circumvent them, and enhance your cybersecurity skills.

#2. Scams, Misinformation, Disinformation & More

This course explores various scams, how they operate, and why they’re effective, focusing on recognizing and preventing them. Using Open Source Intelligence (OSINT), you’ll learn to identify and mitigate threats by understanding their methods and motivations.

#3. OSINT: How to Avoid Romance Scams

This course uses OSINT (Open Source Intelligence) to help you spot romance scams through social media and dating profile analysis. Learn beginner-friendly techniques like reverse image checks, geo-location, and reverse phone lookups to detect deception.

#4. Unmasking Online Romance Scams

Learn to recognize romance scams, spot red flags, and understand scammers’ manipulation tactics. This course covers victim profiles, AI-driven deception, and support for affected loved ones. Gain tools to protect yourself, recognize warning signs, and recover after a scam.

#5. Decoding Cryptocurrency Scams & Rugpulls

This comprehensive guide explores six common cryptocurrency scams and rug pulls, detailing how they operate behind the scenes. Learn to safeguard your investments by identifying scams on platforms like DEX, DEXTools, and Pinksale.

Discover how scammers use bots and software to raise funds and understand tactics like liquidity removal scams on Binance Smart Chain, Ethereum, and Solana. Gain insights into the tools scammers employ to enhance your defense against these threats.

#6. Cybersecurity Awareness Training for Employees

This training helps employees recognize and respond to cyber threats like phishing, social engineering, malware, and ransomware. Learn to spot scams across emails, government tenders, banking, and more.

Includes lessons on VPN use, scam identification, security best practices, and free training on South Africa’s POPI Act, along with a toolkit, posters, and social media resources.

#7. Online Security Awareness Training Guide

This basic guide introduces essential online safety and privacy concepts. Learn to assess password security and create memorable, strong passwords. Identify real versus scam emails, browse the web safely, and communicate securely via email while preventing accidental data leaks.

#8. Internet Safety: How to Stay Safe Online

This beginner’s guide covers essential online safety skills. Learn how the Internet works, identify security risks, and protect against hacks, attacks, and scams. Secure your home network, configure devices safely, safeguard online applications like email, spot phishing attempts, and maintain data privacy.

#9. Cyber Security: Beginner’s Guide to Online Safety

This guide provides essential tips to enhance online safety and prevent malware, scams, and identity theft. Learn to spot email spam, make secure purchases, avoid malware, create strong passwords, browse safely, and protect your privacy on social networks and mobile devices.

#10. Insider Secrets to Internet Safety

This masterclass focuses on digital security essentials like password strength, social media safety, threat detection, and fraud prevention. Understand the cyber threat landscape, implement defense strategies, and learn how to respond to cyber incidents, enabling them to promote cyber awareness and safety in their communities and workplaces.

#11. Cyber Security for Normal People

This step-by-step guide empowers you to lock out hackers, identity thieves, and cybercriminals. Learn to recognize common cybersecurity threats, develop secure browsing habits, and protect your smartphone.

Create and manage strong, unique passwords, implement two-factor authentication, and use encryption to keep your private data safe from attackers.

#12. Online Safety & Secure Browsing

This course covers essential cybersecurity principles for a secure online presence. Learn to recognize common threats like malware and phishing, identify and avoid scams, and use privacy-enhancing tools and browser extensions to protect your data and online privacy.

Top Possible AI Scams in the Next 5 Years

AI scams use artificial intelligence tools and techniques to deceive or defraud individuals or businesses, often by creating highly convincing content or automating traditional scams.

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

AI can create realistic social media profiles with fake photos and details, often used in romance scams. These scams involve profiles created using stolen images and information, making them difficult to detect.

Some scammers use AI chatbots to interact with people, making them feel they are chatting with real individuals and gradually building rapport with victims before asking for money or sensitive information.

#3. Voice cloning scams

AI-generated voice cloning can convincingly mimic someone’s voice. Scammers may use cloned voices to call a person and impersonate a loved one in distress, requesting money for emergencies or urgent situations. This can often catch the victim off-guard, which can be particularly dangerous in situations involving financial transactions.​

#4. Investment & giveaway scams

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

Some scams involve fraudulent “AI-driven” investment platforms or trading tools. These often promise high returns through “advanced AI algorithms” that outperform the market. Victims invest money, only to lose it as these platforms shut down or the funds disappear.

#5. Cryptocurrency AI scams

Scams in the cryptocurrency sector often involve promises of high returns using “AI-based trading algorithms” that sound complex and trustworthy. Many victims invest significant amounts into these schemes, only to find that the funds are never returned.

#6. Fake AI products or services

Scammers promote fake AI-driven services, like tools for “perfect health diagnostics,” “AI beauty filters,” or “AI-based learning platforms” that charge high fees but offer little to no real functionality. These scams target people looking for novel tech solutions but deliver no real service.

#7. Phishing attacks using AI

AI can analyze and tailor phishing emails or messages to be more realistic and personalized, making them more likely to trick recipients. Using natural language processing (NLP), AI tools can mimic writing styles or create fake profiles on social media to send convincing phishing messages that bypass traditional spam filters.

#8. Fake charity scams

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

#9. Fake customer & tech support

Scammers create fake AI customer service chatbots or phone lines impersonating reputable companies. When people contact these fake services, they give away sensitive data, bank information, or even remote access to their devices.

#10. AI-enhanced malware & ransomware

AI can make malicious software more effective at hiding from traditional cybersecurity measures. For example, AI can help malware identify security loopholes more effectively or adjust its behavior to evade detection. In ransomware scams, AI may analyze systems to identify valuable files to encrypt.

As AI becomes more advanced, these scams are evolving, too, and they are often difficult to distinguish from legitimate services. Being cautious, verifying sources, and staying updated on new AI developments are key defenses against falling for these scams.

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.  New AI scams manipulate audio and video to create convincing but fraudulent content, often leading to significant financial loss or identity theft.

To protect yourself from dangerous 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.

This course on Decoding Cryptocurrency Scams & Rugpulls examines six common cryptocurrency scams and rugpulls, detailing their behind-the-scenes operations and how to identify them on platforms like DEX, DEXTools, and Pinksale.

You’ll learn about tactics such as liquidity removal scams on Binance Smart Chain, Ethereum, and Solana, and gain insights into the tools scammers use to bolster your defenses against these threats.

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.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered legal advice. For specific guidance related to online scams, we recommend consulting with a qualified attorney who can address your individual circumstances.

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© 2024, Priya Florence Shah. All rights reserved.