Lately, internet users have been encountering various types of scams. Financial fraud is one of the most popular and unsafe crimes that absolutely anyone can face.
Criminals can deceive ordinary citizens, large companies, or harm the economic situation of the country as a whole.
Types of Fraud
Investment pyramids are currently gaining great popularity. Such firms lure clients and promise them high returns. However, investors earn profits from newly arrived project contributors. The entire system will collapse when there are no new clients. As a rule, only the creators of the investment pyramid will be able to earn in this case.
Another popular type is fraud in financial markets. Scammer brokers offer favorable investment conditions, a small initial deposit, incentive programs, and other tricks to attract traders. But in the end, no one, except the management of the brokerage project, receives earnings. The most common fraud scheme in this case is that investors are not paid profits: client accounts are blocked, profit withdrawals are denied, or deposits are drained.
Sometimes there is fraud related to loans. This occurs when a person planning to take out a loan provides the lender with false information about previous loans, actual income (needed to determine the client's solvency), and property. There are situations where a person takes out a loan in someone else's name.
How Money is Stolen Using Bank Cards, Phone Calls, and Cryptocurrency
Currently, unauthorized access to users' bank accounts is also considered a very popular scam. Fraudsters steal clients' information and use it to make payments for goods or services without the cardholder's knowledge. They can obtain data through SMS messages, calls pretending to be bank employees, or social networks. Scammers may also use more serious methods, such as installing special devices on ATMs – skimmers or small video cameras.
There are situations when, during online payments, fraudsters also steal bank card data. Usually, such a situation occurs when paying on foreign websites.
Suspicious calls are another type of financial scam. Fraudsters call their victims, addressing them by name and patronymic, pretending to be bank employees. They talk about a suspicious operation and request all card details: number, three digits, expiration date. But it is important to remember that official bank representatives never ask for this information. Only scammers do that.
One of the popular types is fraud involving cryptocurrency wallets. In this case, the user installs virus-infected software on the computer, allowing scammers to gain access to the private key and password of the cryptocurrency wallet. To prevent such fraud, one should carefully choose the cryptocurrency exchange. It is worth choosing reputable companies with a long history of users.
Ways to Protect Against Fraudsters
Fraudsters, aiming to fill their pockets with users' money, continue to invent ways to deceive clients. To avoid falling into fraudsters' traps, vigilance is needed. There are several ways to protect against financial fraud:
- Immediately after receiving a bank card, hide the PIN code in a safe place. Never disclose bank card details to anyone;
- if you plan to engage in trading, it is recommended to thoroughly check the brokerage organization for cooperation: trading conditions (pay special attention to the minimum deposit amount), licenses, official registration;
- a high percentage of earnings in a short time (this applies to financial pyramids). For example, no one will pay 200% profit in a day.
If theft from a bank card has occurred, you must immediately contact the bank.
How to Protect Yourself from Financial Fraud
Every user can independently protect themselves from fraudsters. The main thing is to show a little vigilance.
First of all, it is not recommended to click on suspicious links or answer calls from unknown numbers. Often, fraudsters send out fake links. When receiving a suspicious message about the need to confirm a purchase (when no order was placed), do not provide any information – especially bank card details.
It is essential to install professional antivirus software on your personal computer. There are cases when brokerage companies offer to install additional software for trading on the PC. But in fact, after installing the software, scammers gain access to online banking and other bank accounts and steal users' money. The second point is to pay attention to the broker's registration. If the main office is located offshore and lacks a license, this is the first sign of fraud.
If a case of money fraud arises, do not leave everything to chance. Immediately gather all possible evidence of the funds transfer and contact a bank or chargeback.
These are some of the most popular financial scams that are becoming more frequent. The main phenomena accompanying such fraud are corruption and money laundering. To prevent such situations, it is worth improving the legislative framework and strengthening supervision by regulatory authorities. Another strategy to protect against fraudsters is to develop users' financial literacy through special webinars or courses.