Cybercrime includes a wide variety of crimes on the internet. Thieves can include anything from fraud to identity theft. We provide tips on what you can do to prevent cyber-crime and bring you the latest information about it.

Phishing

Phishing is the use of fraudulent e-mails or websites that look like they're from legitimate institutions or companies. They're usually disguised as requests for personal information (like account numbers or passwords) or other legitimate requests. The goal is to trick you into giving up information or accessing an account.

Hackers may be using these techniques to steal information from individuals, companies, and government agencies. Phishing is a common form of hacking, and it involves sending a fraudulent email to gather login information or to trick someone into revealing their password.

Phishing is a common cyber-attack that can easily be performed by a person with little technical expertise. The results can be devastating if a company is targeted, and the company's reputation is tarnished as a result. It is important that everyone knows how to identify phishing attempts and how to avoid them.

How you can detect if you have been phished

Here are a few things to be on the lookout for when receiving phishing emails: grammar and spelling errors. A sense of urgency, threats, requests, or demands. Be wary of suspicious and unknown attachments, and strange links or domain names (one way to see if it is a phishing email is to hover your mouse over the link to see what link pops up. For example, if the email says it is from Amazon, but the link does not reference Amazon, it might be phishing).

Non-Payment Non-Delivery

Scammers are ripping off people all over the world. In 2020, it cost consumers an average of $265 million for non-payment or non-delivery scams. Credit card fraud cost $129 million in losses.

What are Non-Payment Non-Delivery scams? Criminals sell their goods on sites like eBay or other online auction sites. Once they have your payment, they simply do not ship the goods. Instead, they sell them online. This makes it look like the item has been shipped when it hasn't.

How you can protect yourself from Non-Payment Non-Delivery Scams

Verify who you are buying from to make sure it is legitimate and secure. The URL should have HTTPS in its domain address. If you do not see HTTPS, do not enter, or give your information.

When buying from a seller, never send money via wire. It's smart to avoid using pre-paid gift cards, because they're not as secure as a credit card.

Personal Data Breach

The Internet has made our lives easier in many ways. It has allowed us to connect with friends and family around the world and share pictures and videos with ease. However, it has also made it easier for criminals to steal your identity and your money. Hackers are constantly searching for new ways to access your personal information and exploit your accounts. If you're not careful, they may even be able to steal your money and use it to fund their own ventures.

There are many ways for hackers to gain access to your information. You can be hacked by phishing scams, malware or by clicking on a link in an email.

Data breaches are usually the result of human error, but also include malicious attacks from hackers and computer viruses. Data breaches can happen in many ways, but most often they happen due to human errors. The most common one is a user clicking on a link to a malicious website or opening an email attachment that contains malware.

What you can do if you have a personal data breach

Here are some things to do:

● Change all your passwords to something secure, unique and different across all your accounts. Make passwords at least 12 characters long with a mixture of letters, symbols, and numbers. It might be helpful to use a password manager.

● Use Two-Factor Authentication (2FA). This will add a layer of protection to your accounts.

● Check your accounts, credit card statements and your credit report.

● Consider using an identity theft protection service.

● Go to IdentityTheft. gov for some great resources and guidance.

Extortion

Ransomware is a type of malicious software program that locks access to your computer, then demands a ransom in order to gain access again. It usually starts with an e-mail message that looks legitimate. For example, it might say that your computer has been infected with a virus and it needs to be cleaned. The message might also include a hyperlink to a website where you can download software that will fix the problem. Once you click on the link, the malware will infect your computer.

Distributed Denial of Service (DDoS) attacks are becoming more common, and they are used by cybercriminals to take down a website or cause a web server to crash. In most cases, this type of attack is carried out by using a botnet, which is a network of infected computers that has been remotely controlled.

How to protect yourself from Cyber Extortion

Cyber liability insurance is a type of insurance that protects businesses and individuals from losses caused by cyber-attacks. These types of attacks can include anything from hackers stealing your data to a denial-of-service attack.

Confidence | Romance Fraud

This is a deception by the perpetrator of an intimate relationship, whether they're in your family, your friend group, or your romantic life. The victim is then convinced to send money, personal and financial information, or to launder money on behalf of the perpetrator. Criminals who carry out romance scams are experts at what they do and will seem convincing, sympathetic, and believable.

These scams are usually perpetrated by an organized group of criminals, who work together to take money from multiple victims at a time. The typical romance scam is designed to get people to reveal personal information, such as bank account numbers, credit card numbers, etc. Once they have that information, the scammer can withdraw money directly from the victim's bank account.

What you can do

According to the FBI*, here are some helpful tips:

● Be careful what you post and make public online. Scammers can use details shared on social media and dating sites to better understand and target you.

● Research the person’s photo and profile using online searches to see if the image, name, or details have been used elsewhere.

● Go slowly and ask lots of questions.

● Beware if the individual seems too perfect or quickly asks you to leave a dating service or social media site to communicate directly.

● Beware if the individual attempts to isolate you from friends and family or requests inappropriate photos or financial information that could later be used to extort you.

● Beware if the individual promises to meet in person but then always comes up with an excuse because he or she can’t. If you haven’t met the person after a few months, for whatever reason, you have good reason to be suspicious.

● Never send money to anyone you have only communicated with online or by phone.

Tech Support Cyber Crime

If you receive a call or email from someone claiming to be with your internet service provider, Microsoft, or any other tech company, and they say that they have discovered a virus, they are likely a tech support criminal.

This fraudulent activity can take place via the telephone, email, social media, or online chat. Fraudsters may use fake names and/or false credentials to pose as legitimate companies and individuals. In some cases, fraudsters can trick victims into believing they are speaking with a live person when they are speaking to a fraudster.

Tech support scams are one of the most common types of internet fraud. These scams are usually perpetrated by people who claim to be tech support representatives from a large company, like Microsoft or Dell. They often pose as a legitimate business, claiming that you have an issue with your computer or software. They ask you to provide personal information, like your credit card or bank account number.

How to protect yourself

A scammer will often use a false sense of urgency to trick people into believing that their computer is about to fail, or they have a virus. They may even claim that they need your credit card number or bank account details to repair it. There is no way to guarantee that a message you receive is genuine. When you receive an unsolicited message from someone claiming to be with Microsoft, be sure to contact the company directly.

Investment Scams

Investment scams are all too common and take advantage of investors resulting in financial loss and emotional stress.

1. Ponzi Pyramid Schemes - these schemes deceive people into giving them money. They are often referred to as 'ponzis' because they resemble the Ponzi scheme that defrauded hundreds of thousands of people in the early 1900's. Ponzitracker reports that since 2005, almost all Ponzi schemes have resulted in a total loss of around $15 million to $20 million. The reason that Ponzi schemes continue to flourish is because they require no new investment. If people are willing to believe that they will eventually make money, they will continue to participate in the scheme.

2. Promissory Notes - A promissory note is a very common form of investment fraud. It is designed to look like an investment, but in reality, it is nothing but a scam. They are often sold to seniors with a promise of high interest rates with low risk.

3. Loans - These "loans" are often called private placements. They are often a scam because you don't know if the money you invested was loaned to a legitimate, collateralized borrower. Some investors receive monthly reports stating their assets are producing great returns. These investors often complain that the reports they received were fake.

4. Currency Scams - The exotic nature of currency trading is what gives currency scams their credibility with investors. This makes the trades seem more likely to be successful and makes the criminal appear like he's smarter than the average investor.

5. Precious Metals - precious metals are like currency scams, it is exotic and enticing to consider. However, many investors fall prey to the scam and take the operators word that their money has been invested in an actual mining operation.

6. Life Settlements or Viaticals - a life settlement (viatical) is an investment which purchases a life insurance policy of someone who is terminally ill or who has a life-threatening illness. The person sells the policy at a discounted rate for cash. Though it may sound prudent they often take advantage of the investor.

7. Unregistered Investments - Many people assume that if something looks real, then it must be legitimate. Often investments are not properly registered with regulatory agencies and are misrepresented by the one selling them.

8. Prime Bank Scams - There are many different types of investment schemes that promise extremely high yields over a short period of time. These are known as "prime bank fraud". People who claim to have access to financial products that are offered at a discounted price and sold at a premium can sell those financial products for a profit. In reality, these financial products are fictitious. They are created to trick individuals into believing they are real, when in fact, they are not.

9. Investment Seminars - seminars that promote get rich quick schemes or too good to be true promises are more than likely a scam. If it was so great, why would the one presenting it to you. They would keep the information for themselves and make all the money.

10. Annuities - Annuities can provide regular income payments for life or a specific period of time. Annuities can be an investment scam if financial advisers switch your current annuities for inferior products so they can make more money.

How to protect yourself from investment scams

If you want to avoid investment fraud, it helps if you're proactive and careful. Always do your research before making a new investment.

FINRA's BrockerCheck website (brokercheck.org) can be used when determining whether an investment opportunity can be trusted. Why should an investor use BrokerCheck? Investors can "research the background of financial brokers, advisers and firms." (FINRA BrokerCheck)

The BrokerCheck website states that:

BrokerCheck helps you make informed choices about brokers and brokerage firms-and provides easy access to investment adviser information.
BrokerCheck tells you instantly whether a person or firm is registered, as required by law, to sell securities (stocks, bonds, mutual funds and more), offer investment advice or both.
BrokerCheck gives you a snapshot of a broker's employment history, regulatory actions, and investment-related licensing information, arbitrations and complaints.

Source: https://brokercheck.finra.org/

Security Tips When Working with a Financial Planner or Financial Advisor

The world of financial planning and investment advice has moved online. Many firms use online forms and e-signatures to open investment accounts, deliver financial planning, and online account reporting. The amount of information available is very helpful but it is important that your financial advisor has systems in place to ensure your protection.

If you have investments with a financial advisor or financial planner, make sure they use a custodian to hold your assets. "A custodian is a financial institution that holds customers' securities for safekeeping to prevent them from being stolen or lost." (Investopedia). Custodians have robust security measures in place to ensure that your investments are safe. Custodians utilize sophisticated firewalls that are usually separated from servers that contain your personal information. These servers are encrypted and designed in a way that the information cannot be directly accessed from the internet. There are processes and measures in place that ensure that any suspicious activity is flagged and communicated to the financial advisor and client. Passwords or personal information are never sent to you via email and can only be accessed by a unique user ID and password that you have created when opening and managing your account.

Custodians will have an asset protection guarantee regarding fraud. The investment industry has taken great strides in protecting clients and their investments from cybercrimes. If you have questions about your financial advisor or financial planners’ security measures, reach out to them as they can provide you with information provided to them by their custodians and partners.

The custodian Charles Schwab has an excellent Security Checklist here.

Conclusion

The dangers of cyber-crime are real. They can lead to financial losses, identity theft, and even physical harm. We all need to be aware of these risks. Cyber-crimes and scams are becoming more prevalent with each day. You need to be aware of the dangers and take precautions. In fact, cyber-crime has become so common that some people even view cyber-crimes as an inevitable part of life in modern society.

Source + images:

*FBI.gov

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The Dangers of Cyber Crime