Don’t Let Online Scams Ruin Your Finances

Don’t Let Online Scams Ruin Your Finances

Nowadays, we find almost every single person constantly on their device. Whether it be for leisure or for work, people are glued to their devices. What’s scary to think about is how we can be e-scammed regardless of what we’re using our devices for. 


What is an online scam? 

  • Let’s say you receive a text message stating that you need to log into your bank account to validate your information for the bank.
    • You start worrying about what could possibly be wrong and click the link in stress. Once you click it and sign in with your credentials, it’s basically game-over for you– you’ve been online scammed.


Common Online Scams 

Some common online scams and their basis include but are not limited to: 

  • Scammers set up a hoax to act as a fake charity [this can include going as far as making a fake website] 
  • They strike in response to real emergencies or disasters occurring 
  • Typically a user will receive a message claiming that they have an undelivered package awaiting its pickup. 
  • Scams can occur by simply clicking a link to do something like print a delivery receipt.
  • Once this link is clicked, users may be tricked into downloading malware
    • A user’s information [personal or financial] may be compromised as a result
    • Typically occurs in the form of “technical support scams” 
  • Scammers contact people over the phone and get access to the users’ computers
  • Scams can include things like stealing money and compromising user information
  • Scammers pull users by creating fake online shopping sites or advertisements that may look legitimate 
  • Scammers claim to be registered tax agents associated with credible brands 
  • From here, they can use fancy language to convince a person into disclosing tax returns/refund information 


Other Types of E-Scamming 

Online scamming can also be referred to as internet fraud. Internet fraud targets people using online software to take advantage of users via an internet connection. 

Types of internet fraud attacks: 

  • Data Breach: protected data is stolen from a secure place and put into an untrusted place 
  • Denial of Service, DoS: interrupts access of traffic to an online network with the intention to cause malicious intent 
  • Malware: malicious software is used to damage/disable a user’s device
    • It May be utilized to obtain a user’s personal credentials and information
  • Ransomware: demands that the user pay a ransom to get access to their data restored
    • Typically may be delivered via phishing attacks 
  • Business Email Compromise, BEC: targets businesses that make constant wired payments
    • Compromises authenticated emails to submit unauthorized payments


Tips Indicating a Potential Scam 

Indications of a scam in messages may include but are not limited to

  • The message includes a link to click asking you to confirm certain details
  • The message is not addressed to you personally 
  • There is an alarming sense of urgency in the message 

Humanity Wealth Advisors believes in sharing good knowledge and education. We believe your financial wellness comes from knowing good information– after all, knowledge is power. 

  • The articles we provide are a free service used simply to educate, and pass knowledge; a knowledgable investor is a great investor! 
  • Online scams can compromise your credentials which may lead to a deflection of financial planning; giving readers information on cybersecurity helps us meet our goal to educate the general public 
  • Contact us if financial planning is crucial to you- we can help you with that.


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More about the author: Harry Sherdil

As a fiduciary financial advisor at an independent firm, Harry strives to offer the same resources, tools, and research as bigger firms while serving new and existing clients' best interests.