In the digital age, the treacherous quicksand and booby traps of our childhood adventure movies have been replaced by the equally perilous world of online scams. From phishing emails to fraudulent social media profiles, the internet is rife with digital pitfalls designed to part you from your hard-earned money. According to a recent Bankrate Financial Fraud survey, a staggering 37% of respondents reported losing money to an online scam last year, highlighting the prevalence of this modern-day menace.
But all is not lost if you find yourself ensnared by a scammer’s trap. Immediate action is your best defence against further financial injury. ‘You really have to stop the bleeding,’ advises Gina Tran, director of product for Bitwarden. Scammers are constantly honing their craft, and with the sale of customer data, the advent of generative AI tools, and invasive app data collection, their methods are becoming increasingly sophisticated. Given enough time, a scammer can amass a wealth of information to target you more effectively.
For instance, romance scammers may employ AI-generated images to impersonate an old acquaintance, while job scammers might use details from your online resume to engage in conversation and ultimately access your financial accounts. Regardless of the method, the goal is the same: to siphon off your funds.
Tran recommends these five essential steps if you’ve fallen victim to an online scam, to help you regain control and possibly recover your losses:
1. Change your passwords and enable multi-factor authentication (MFA)
Immediately update the password for any compromised account. ‘You need to have a strong, unique password for your critical accounts,’ Enabling MFA adds an extra layer of security, making it harder for scammers to gain unauthorised access.
2. Download a password manager
If you’ve reused passwords across multiple accounts, change them all. A password manager can assist in generating and storing complex, unique passwords for each of your accounts, reducing the risk of a scammer gaining access to multiple platforms.
3. Monitor your other online accounts
Vigilantly watch for unauthorised login attempts on all your accounts. Financial services often provide details such as IP addresses and locations of login attempts. If you notice any suspicious activity, revoke access for that IP address and device, and report the incident to the financial institution.
4. Contact relevant financial institutions
After securing your accounts, reach out to the fraud resolution department of the affected institution. While banks may be able to recover some or all of the stolen funds, the success of such efforts can vary depending on the nature of the theft. For future transactions, consider using virtual credit card numbers to protect your actual card details.
5. Report the scam
Begin by reporting the scam to local or state law enforcement. While they may not be able to recover your funds or catch the scammer, your report contributes to a larger dataset that can improve scam detection and prevention efforts.
Dealing with an online scam can feel overwhelming, but taking the right steps after falling victim to an online scam can help limit the damage and, in some cases, recover your losses. It’s all about acting quickly and staying vigilant.
How have you dealt with online scams in the past? Are there any strategies you’d recommend for others? Please share your insights and experiences in the comments below. Your input could be valuable to others in similar situations.
Also read: Major bank stops scammers in their tracks with new technology
