Beware, Scamsters On The Prowl!

Dr S S Mantha Nov 04, 2023

How many times has one of us been scammed by some online fraud? Almost all of us must have received a mail typically from someone not on our mailing list wishing to share spoils that he or she received by way of inheritance. “The money's the same, whether you earn it or scam it”, said Bobby Heenan, an American professional wrestling manager. The difference however is, we earn it and they scam it. Scams come in various shades and colours. From job scams, e-commerce scams, fake friend call scams, phishing scams to the new malware scams, ponzi scams, investment scams, romance scams, property scams and the list is endless. Scamming is fraud. The Reserve Bank of India (RBI) data, shows that reported frauds were to the tune of Rs 60,414 crore in 2021-22 and that “collectively, the bank frauds have resulted in losing at least Rs 100 crore every day over the past 7 years, The Microsoft 2021 Global Tech Support Scam Research report, reveals that 69 per cent of consumers experienced some online fraud in 2021.

What do scammers do?

Scammers have several tricks up their sleeves, often involving manipulation, misrepresentation, or deception. In-person interactions, phone calls, emails, text messages, or online platforms are all means used to scam. Phishing, identity theft, fake websites, and other internet-based schemes to trick individuals into revealing personal information or sending money are the tools they use. Scammers may offer fake investment opportunities, promising high returns, but in fact, have no intention of investing the money as promised. Sometimes, Victims are told they've won a prize or a lottery, but are required to pay fees or taxes to claim their winnings, which do not exist. Romance knows no age and there are online romantic relationships built with an intention of defrauding the victims financially, often by requesting money for various reasons. Advance fee frauds are where scammers ask victims to pay a fee upfront to access a promised service, such as loans, job opportunities, or grants, but the service is never delivered.

For all those not well versed with technology, there are tech support Scams, where fraudsters pose as technical support agents, claiming that the victim's computer or software is infected with malware and charging them for unnecessary services or software. In charity scams, the scammers pose as charitable organizations, soliciting donations for fake causes or pocketing the funds instead of using them for the stated purpose. Have we not heard of Ponzi schemes, where money from new investors is used to pay returns to earlier investors, creating the illusion of a profitable business? Eventually, such schemes collapse as in the case of Bernard Madoff, a prominent financier and former chairman of NASDAQ’s case.

In 2008, Bernard Madoff ran the largest Ponzi scheme in history, defrauding investors of $65 billion. He used funds from new investors to pay returns to earlier investors without legitimate activity. The 2008 financial crisis led to Madoff's 150-year prison sentence and his death in 2021.

How can we protect ourselves?

Remember to report scam to the appropriate authorities or organisations to help recover a little of what is lost and prevent others from becoming victims.
Cybercriminals use automated software that goes through huge stolen lists of numbers. Answering the phone will tag your phone number as active and you may receive more scam attempts. The answer is, just block the number.
Do not click on links that are shared via messaging platforms. Instead, check the site via a browser. Check for an authenticated website and its Secure Sockets Layer (SSL) certificate, which means the URL will begin with “https” rather than “http”.
Install anti-virus software. Download any authenticated app, that checks incoming SMS messages and calls against a list of known scam numbers and filters them if there is a match. Never, download apps from third-party or dubious sites.
Watch out for malware frauds. These happen when a customer replies to a fraudulent advertisement offering to buy anything. The seller then gets in touch with the customer, usually over WhatsApp and asks for the installation of an Android Package Kit (APK) file in order to receive money.

Practicing online security measures can help avoid falling victim to scams. Did you know that the maximum punishment for an offence under section 420 of IPC is imprisonment for a term which may extend to seven years, with or without monetary fine? But then, what is it to the victim? Most important is to be vigilant and cautious, when dealing with unsolicited requests for personal information or money, especially from unknown sources. Curiosity has never helped any, except falling in more trouble and more scams.