Next time you spend free time on social media scrolling Facebook or reading Twitter threads, don't be too quick to click on messages offering great deals, financial assistance, or a shot at romance. If you do, you will likely invite a scammer who will exploit your finances or steal your identity.
According to the Federal Trade Commission (FTC), people lost about $117 million in the first six months of 2020 to an online scam. The threat is real and can affect anyone. Here are some of the top scams and how you can avoid them.
Investment and Cryptocurrency
Fake cryptocurrency and investment opportunities are one of the biggest scams on social media today. Studies show that in 2021, about 37% of social media scam losses resulted from these types of scams.
The con is usually straightforward: a scammer reaches a user with a direct message. They build a relationship over time and then sell an excellent investment opportunity to help make money fast. They will then request money to open accounts, purchase bots, and later disappear.
How to Avoid
- Unless you know whom you are talking to, avoid sharing your personal details with other people online.
- Don't send money to any stranger who reaches out through social media with a proposition to sell a business offer
- Conduct research to confirm the legitimacy of companies and people offering investment opportunities.
Selling Counterfeit Products
Facebook Marketplace is a great place to find products you're looking for at a cheaper price, but there are opportunities for scammers to take advantage of unsuspecting victims. The most common Facebook Marketplace scam is counterfeit products.
The ads capture the attention of buyers by saying the proceeds go to charity or list the products at unbelievably low prices. Such products have price points that are lower than what other retailers charge.
How to Avoid
It's usually easy to avoid these scams, as the product's images or often poor quality with grammatical errors in the ad copy. When you find a deal that is too good to be true, do a Google search of the product and brand and check for reviews.
You can also use a people search tool to verify the seller's or buyer's information, to make sure they're who they claim to be. If you have their name and address, a quick lookup will provide you a detailed look into the public records associated with them, such as criminal records. For sellers, a reverse address report can help verify the shipping address lines up with the buyer's current address. Buyers can also use the reverse phone lookup to see if the seller's number is associated with fraud.
Impersonator Accounts
Scammers can create social media accounts that mimic people that they know. It will have the same name, photo, and identifying information. The account may request money, post fake prizes and giveaways, or send links for phishing scams. Other accounts imitate celebrities who may claim they are raising money for charities or need financial assistance.
How to Avoid
No celebrity or influencer will message you for financial assistance. Follow verified accounts of celebrities and avoid interacting with messages from duplicate accounts.
"Is This You?" Links
The scam is another version of a hacked account scam. The message usually seems to come from a friend asking if you are the person in a picture or video with a link. The links usually redirect to websites designed to steal details such as passwords.
How to Avoid
Although reading such messages can be nerve-racking, you don't need to. Never click on suspicious-looking links; check with the friend before opening the message.
Fake Giveaways and Sweepstakes
Scammers can DM you saying you've won a prize in something you never participated in. However, you will only receive the price if you pay or offer some financial details. While everyone would love to win a big prize, the congratulatory messages that come into your DMs without participating in giveaways are mainly from scammers.
How to Avoid
Do not pay money to an account that DMs you. Even if you win a credible lottery or sweepstakes, you are not required to pay. In fact, it is illegal to request money for sweepstakes.
Fake Jobs
The number of job scams has increased dramatically in the last few years. Scammers create fake accounts and then promote amazing job opportunities that promise to offer lots of money. The scam targets to get money from anyone who joins or steals their information.
How to Avoid
Always research the company you want to apply for a job position to ensure they are legitimate. Check reviews on sites like Glassdoor to avoid paying money for supplies, training, or equipment upfront for a new job.
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