Did you know that Americans collectively lost approximately $10.3 billion to online scams in 2022?
The Federal Bureau of Investigation (FBI) has deemed this loss the highest in five years, with the Internet Crime Complaint Center lodging more than 2,000 complaints of cyber scams every day. In addition, the Federal Trade Commission (FTC) has recorded around 2.4 million cases of fraud in the same year. The government agency also noted that although the total number of cases saw a 5% decline, the total losses increased by a whopping 49%. The number of losses from scams in 2023 is expected to be even higher.
These statistics paint a rather troubling picture of the digital landscape where cybercriminals exploit unsuspecting individuals by employing increasingly sophisticated tactics. From clever social engineering attempts to advanced phishing and malware attacks, the malicious actors continue to lurk in the shadows, ready to compromise your online privacy and security at any given moment.
Did you know that Americans collectively lost approximately $10.3 billion to online scams in 2022?
The Federal Bureau of Investigation (FBI) has deemed this loss the highest in five years, with the Internet Crime Complaint Center lodging more than 2,000 complaints of cyber scams every day. In addition, the Federal Trade Commission (FTC) has recorded around 2.4 million cases of fraud in the same year. The government agency also noted that although the total number of cases saw a 5% decline, the total losses increased by a whopping 49%. The number of losses from scams in 2023 is expected to be even higher.
These statistics paint a rather troubling picture of the digital landscape where cybercriminals exploit unsuspecting individuals by employing increasingly sophisticated tactics. From clever social engineering attempts to advanced phishing and malware attacks, the malicious actors continue to lurk in the shadows, ready to compromise your online privacy and security at any given moment.
To help you stay protected, we have put together a list of top scams to look out for in 2023 and shared tips on how to stay safe from them.
1. Cryptocurrency-romance scam
Scammers are increasingly targeting unsuspecting individuals by luring them into romantic relationships before gaining access to their cryptocurrency wallets. Cybercriminals usually pose as an online love interest so they can coerce the victim into downloading a fake investment app and investing in a deceptive scheme.
In 2022, the FBI stated that a total of 19,050 victims lost around $739,030,292 to such scammers.
How to stay safe?
Boost your digital security by exercising skepticism when starting romantic relationships with someone you met online – especially if the other person pressures you for investments. Moreover, be cautious while sharing your sensitive data, including financial information, with others. You must also make sure to verify the identities of people you interact with on the internet and not share your digital assets with anyone.
2. One-time password (OTP) bot scam
If you frequently use mobile banking or e-commerce services, you must be quite familiar with one-time passwords or OTP. It is a popular security strategy where the user receives an automatically generated sequence of numbers that verifies their identity for an online transaction or login session. However, unfortunately, this method for two-factor authentication does not provide true password safety as scammers have begun using OTP interception services or bots to trick individuals into revealing their codes and gaining illegal access to their bank accounts or confidential information.
How to stay safe?
You can strengthen your digital security by being vigilant of unsolicited calls or messages. Please be careful while sharing authentication codes or providing other information. Moreover, if you want to stay safe from OTP scams in 2023, consider enabling two-factor authentication and creating unique passwords. You should also avoid connecting to unsecured public WiFi networks without an advanced virtual private network such as PureVPN.
Read More: 8 popular VPN scams (and how to avoid them) in 2023
3. Bank impersonator scams
Fraudulent bank impersonation schemes have become a substantial threat to your digital lifestyle, posing risks to your financial security. According to the FTC, it was the most-reported text message scam in 2022, accounting for $330 million in reported consumer losses. This fraud involves criminals impersonating representatives from reputable banks and reaching out to unsuspecting victims through phone calls, emails, or text messages. These malicious actors employ sophisticated social engineering techniques to gain access to victims’ account numbers, passwords, and credit card details. One of their most common tricks is to ask the victim to read the OTP they have received on their registered number for verification purposes.
How to stay safe?
To ensure your online privacy and security, always verify the authenticity of any individual claiming to be from your bank by independently contacting the institution through their official contact details. Never use the contact information provided in the suspicious message. Additionally, be cautious of sharing personal or financial information over the phone, email, or text unless you are certain about the recipient’s identity. Enabling multi-factor authentication for your online banking accounts can also provide an extra layer of security. Lastly, make sure to regularly review your account statements and keep an eye out for any suspicious transactions.
4. Business email compromise
Business email compromise (BEC) impacts numerous businesses and organizations every year. In this type of scam, criminals gain unauthorized access to a company’s email account or impersonate key personnel to deceive employees, customers, or vendors into making fraudulent payments or sharing sensitive information. These attackers meticulously study their targets, employing social engineering tactics to manipulate employees and exploit the trust within the organization. The financial consequences of BEC can be severe, resulting in significant monetary losses and reputational damage for businesses.
How to stay safe?
To stay safe from such scams in 2023, businesses must implement strong email authentication protocols, educate employees about the risks associated with BEC, and provide training on how to recognize suspicious emails. Organizations should also encourage the use of sophisticated password managers such as PureKeep and instruct employees to regularly update their systems to minimize vulnerabilities. Additionally, if you think you have become a victim of BEC, please inform your staff and customer about the breach as soon as possible.
5. “Work from home” scams
Have you ever come across listings for remote work opportunities on social media that seem just too good to be true? Unfortunately, more often than not, these offers are nothing more than fraudulent schemes targeting those seeking remote jobs. These listings promise incredible benefits and flexible schedules to lure unsuspecting victims into sharing their personal details with cybercriminals, which can lead to financial loss or identity theft. In some cases, the scammers also ask applicants to pay a certain amount in fees to progress to the next stage of the recruitment process.
How to stay safe?
To stay safe from fake “work from home” schemes, job seekers must always verify the legitimacy of the organization before applying for the position. In addition, apart from researching the company, be wary of job postings that make unrealistic promises or ask for upfront payments. Since legitimate employers never ask for personal financial information before extending a job offer, please don’t share any sensitive data with any individual claiming to be a representative of a certain company. Instead, contact the organization directly to confirm the details.
To conclude, cybercrimes have become much more sophisticated over the past years. To stay informed and protected against the top scams of 2023, stay connected to PureVPN Blog. You can also follow us on Facebook and Twitter for the latest updates in the world of cybersecurity.
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