What is considered scam?
Sophisticated e-mail scams are potential disasters for internet commerce
What is the motivation behind a scam? Common forms of scam
How can I prevent myself from becoming the next scam victim? Case Studies
   

What is considered scam?

SCAM IN ITS SIMPLEST DEFINITION:

  • If you have to pay money to get money, it's probably a scam.
  • If it is too good to be true, it's probably not true

    Definition of Scams, from Wikipedia, the free encyclopedia

    A confidence trick, confidence game, or con for short is an attempt to intentionally mislead a person (known as the mark) usually with the goal of financial or other gains. The confidence trickster, con man, scam artist or con artist often works with an accomplice called the shill, who tries to encourage the mark by pretending to believe the trickster. In a traditional con, the mark is encouraged to believe that he/she will obtain money dishonestly by cheating a third party. They are stunned to find that due to what appears to be an error in pulling off the scam, he/she is the one who loses money. In more general use, the term con is used for any fraud in which the victim is tricked into losing money by false promises of gain.

    Some confidence tricks exploit the inherent greed and dishonesty of their victims. It has been said by confidence tricksters that it is impossible to con a completely honest man. Often, the mark tries to out-cheat the conmen, only to discover that he/she has been manipulated into it.

    Sometimes conmen rely on naïve individuals who put their confidence in get-rich-quick schemes such as 'too good to be true' investments. It may take years for the wider community to discover that such 'investment' schemes are bogus, and usually it is too late as many people would have lost their life savings by then.

    What is the motivation behind a scam?

    Through understanding the definition of what a scam is, it's probably not too difficult to figure why people want to come after your money. Since history, human beings have always been the weakest link and will easily succumb to greed. Preying and exploiting on this alone gives rise to quick cash opportunities where one can easily be tricked into believing something amazing but end up parting with his/her hard earned money.

    Thus, the wider the reach, the greater chance of it becoming a successful scam and more money will be rolling in from fallen victims.


    How can i prevent myself from becoming the next scam victim?

    GOLDEN RULES:

    If it looks too good to be true — it probably is. Use your common sense: the offer may be a scam.Remember there are no get-rich-quick schemes: the only people who make money are the scammers.

    ALWAYS get independent advice if an offer involves significant money, time or commitment. Do not agree to offers or deals straight away: tell the person that you are not interested or that you want to get some independent advice before making a decision.

    NEVER send money or give credit card or online account details to anyone you do not know and trust.Check your bank account and credit card statements when you get them. If you see a transaction you cannot explain, report it to your credit union or bank.Keep your credit and ATM cards safe. Do not share your personal identity number with anyone. Do not keep any written copy of your PIN with the card.



    Sophisticated e-mail scams are potential disasters for internet commerce

    Scams:
    As scammers will try to reach out to as many potential victims as possible, they will typically spam and hence, you have to guard your email address and exercise caution when acting on such scam emails.

    How to guard your email address?

    Treat it the way you treat your telephone number: don't give it away easily, don't publicise in public places like websites or chat rooms. In addition, you can also set up different email addresses for different purposes: use one or two for more public purposes such as subscribing to newsletters or registering at online stores. Also, keep one that you only reveal to family and close friends.

    Furthermore, you should always exercise caution when dealing with emails. Malicious actors often send emails in the name of your friends or colleagues. They also try to bait you with convincing stories or juicy contents to fool you into giving information. For example, you may be tricked into opening email attachments that contain viruses. If not, you may be asked to click on links in emails that send you to hacker websites or banking website look-alikes. Be alert at all times and do not succumb to greed. More often than not, what appears too-good-to-be-true is probably out for your money.

    Before Before acting on emails, you can always apply the KRESV test:

    K now: Do I know the sender?
    R eceived: Have I received email from this sender before?
    E xpect: Am I expecting email from this sender?
    S ense: Is this email something that I expect from this sender?
    V irus scan: What will my anti-virus software say about this email?

    Common forms of scam:

    Physical forms where transactions are done in person using schemes such as:
  • "Magic" Stone & "Expensive" Computer Chips cheats
       
    Online world where cyber-crimes were transacted online via:
  • Email Scams
  • Phishing: (Stealing of Internet Banking Account Information via Fake Websites)
  • Online Scams on Websites with FAKE Advertorials
  • Charity Scams
  • Social Networking Scams
       
    Other means via the use of mobile phones or cell phones to reach a victim:
  • SMS Scams(on mobile phones)

    Case Studies

    Email Scam - The scam that could ruin the Olympic Games!
    Identity theft - Mayor caught up in identity theft
    Phishing - Hackers pose as senator in email fraud bid
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