Since fraudsters are so innovative, there are many different types of scams that exist and the list is always growing. With all the different scams in today’s digital world, there are 4 main types to be aware of:
- Email scams (e.g.: Phishing) – This involves a victim receiving a deceptive email which asks to click a link or view a document. The next steps then involve more deception to acquire personal information like banking or credit cards
- Mobile phone scams (e.g.: Smishing) – These are similar to email scams but the way in which the deception is delivered is via a text message. A major challenge for people, is we get many texts from numbers we do not recognize, such as automatic notifications.
- Landline phone scams (e.g.: Vishing) – This type of scam has been around longer. It involves phone calls to the victim to get them to disclose personal information. You are now dealing with a real person and they can be very persuasive.
- Internet scams (e.g.: Viruses, malware) – This involves deceiving a victim into downloading software to their computer or phone. This software can be very harmful and is often looking to either steal personal information or lock devices or data until a ransom is paid.
Common traits of scams
In every type of fraud the key attribute is deception. Fraudsters need to trick people in order for them to either feel comfortable or feel the need to disclose information or take some sort of action. Human emotions are very powerful and something that fraudsters rely to fulfill on their scam. Fraudsters are very adept at using social engineering - a concept that uses psychological manipulation to get people to do things or give out confidential information.
When fraudsters play on our emotions, how do they do that? How can they trick us? Well, they use some specific tactics to trigger emotional responses rather than logical ones. These can include
- Making it seem very important – convincing a victim that what they are talking about is highly important, very sensitive or confidential it raises the stakes for the victim.
- Use a sense of urgency – requiring a very quick or immediate action increases concern and the need to taking decisive action without thinking too much
- Issue threats – combining importance and urgency with threats of dire consequence further raises the stakes and adds stress in to the decision.
- Too good to be true – the opposite of apply pressure is offering something so good that it is hard to believe, like a great offer or lavish prize. This can cloud your judgement because it so good.
- Need to keep it private – by telling a victim not to tell anyone this puts added pressure on the victim and it also helps the fraudster because the victim will not ask someone else for their opinion.
- Appealing to a sense of duty – by saying “I can rely on you” or falsely stating how this will help others or the community puts added pressure on the victim to comply, not just for themselves but for others.
How have fraudsters tricked people?
Fraudsters are very innovative and over time have come up with a large number of different frauds. Here are a few notable ones that have been seen recently in Canada.
Account takeover: Fraudsters use techniques like phishing or smishing to gather login and password details to sign in and take over a victims account. They can then make changes to the account(e.g.: passwords, addresses), and order products without your knowledge.
Cell phone service provider scam: The fraudsters call a customer offering them a lucrative deal on a new phone and plan. While on the phone the fraudsters gather personal information then use it to contact the service provider and get new phones and services for themselves without the knowledge of the victim.
Identity theft: Using techniques like phishing or smishing or as the result of a data breach, fraudsters collect and use personal information such as your name, date of birth, address, social insurance number (SIN), and other personal details to impersonate you for criminal purposes.
Grandparents scam: The fraudsters impersonate a grandchild that is in trouble and call the grandparents looking for help and money. In these cases there is a sense of urgency and an implied need not to tell anyone.
There are many other examples of fraud that occur. For more examples please refer to the Canadian Anti-Fraud Centre
.
To learn more about fraud and how you can prevent it we encourage you to read our other articles for more in depth information.
Site feedback
