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How to Protect Yourself from Online Fraud

Every year millions of people fall victim to cybercrime. In fact, identity theft and fraud reports of 2019 reveal that out of 3.2 million complaints received that year, 1.7 were fraud-related. This also accumulated to $1.9 billion in money loss – an increase of $293 million from 2018.

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Unfortunately, for the naïve consumer, it can be hard to detect fraud as online con artists are constantly changing their tactics and techniques to prevent their appearance. However, there are some simple steps you can take to enhance your protection from online fraud.

In this guide, let’s find out more about online fraud and the steps you can take to protect yourself.

How Online Fraud Occurs?
Internet fraud or scam is the process of using an online medium to steal someone’s identity or money. Consumers become exploit to these scams in many different ways, including:

True Fraud 
The ‘bad actors’ use stolen credit card or debit card information to make fraudulent purchases online or draw cash advances.

Online Shopping Scams
In this case, the consumer makes a purchase and disputes the transaction by stating that:

  • The product they received was not as advertised, broken, or damaged.
  • They did not receive the purchased product altogether.

In other online shopping scam cases, the vendor is supposedly the fraudulent party and simply disappears with the money – without shipping the product or service as advertised.

Data Breaches
In a data breach, private and confidential information, including bank details, are accessed by criminals and used in various negative attacks. While most ‘bad actors’ use advanced scamming methods to compromise personal information, these can also happen the old fashioned way when crooks steal information by rummaging through trash and bins, or stealing wallets and purses. 


Phishing Attacks
Also known as spoofing attacks, these types of spam trick people into giving out their credit card or personal information by making them believe they are dealing with a legitimate site. But in reality, the phishing attack is carried out by a con artist who steals the information and uses it for further fraudulent activity.

How to Protect Yourself from Online Fraud
There are several ways to protect yourself and your business from cybercrime. Some of these include:

  1. Keep your computers, smartphone and software up-to-date with the latest security software and operating system. Make sure you also turn on automatic updates to receive timely updates regarding the latest threats and fixes. 
  2. Set strong passwords. Experts recommend that you set strong passwords by using a combination of uppercase and lowercase letters along with numbers and special characters. The password should not be too small either and must contain at least 8 characters. Change your passwords frequently as well to avoid getting hacked. 
  3. Be proactive and alert by watching out for phishing attempts. These attacks often occur by giving out links to scam sites. In such cases, avoid clicking on links or opening attachments from sources you are familiar with. Report any site to the company they are impersonating as if you are doubtful. 
  4. Don’t email signatures or account numbers. Instead, use only trusted and secure file sharing services to send out personal and bank account information. At best, simply make a phone call to share information. 
  5. Don’t wire money to strangers and always confirm the receiver with a phone call before making any transaction online. 
  6. Turn on two-factor authentication. This will give your account another layer of protection (password plus a code mailed to your phone) from malicious attacks.
  7. Shop from encrypted sites only. When making purchases online, verify that the website uses secure technology. Make sure that the web address of the site you use begins with HTTPS instead of HTTP. Your web browser will also indicate a padlock icon to show that the site is encrypted. This is not a security that the site is safe, but it is a sign that it is more secure than others. 

Final Words
Online fraud can affect people – regardless of their age. Till date, it has cost consumers billions in the loss. This is why you must protect yourself from any potential trouble by staying proactive and looking at each website you interact within a cynical manner.

There is no guarantee of safety in the internet world, and remaining vigilant is the best protection you can get. Follow the above steps to safeguard your online security. Good luck!