20 Online Scams To Be Aware of in 2021

The internet is an excellent tool for entertainment, work, communication, and education. However, it’s also home to nefarious individuals who are committed to getting hold of your credentials or cash. While public awareness of scams has been increasing in recent years, alarmingly, one in ten US adults still falls victim to a scam or fraud every year. The best way to protect yourself against these scams is to learn what they are and how they work.

1. Work From Home Scams

Due to the COVID-19 pandemic, it’s now not unusual to see work-from-home job postings all over the internet. That should make it easy to find a legitimate remote working position, right? Not necessarily. Work from home scams have been around for a long time, but the pandemic has allowed cybercriminals to exploit people’s desire to work in pajamas like never before.

So, how does the scam work? Typically, you’ll see a job posting that offers a way to make easy money online. Often, the income on offer will be extremely high or very specific. The psychology behind this is simple; high income is more attractive, and specific numbers often seem more legitimate (they appear carefully calculated). If you apply for the job, the company will ask for an advance fee, ask you to buy worthless products, or try to get you to sign up for other scams.

Here’s what to look out for:

• They ask for money for registration, website setup, or to buy leads.
• The job description is vague, or the tasks are elementary (they’re trying to cast a wide net!).
• They have a web-based email address like @yahoo or @gmail. Legitimate companies usually have their own email domain.
• You’re offered the job without going through the usual motions like having an interview, talking on the phone, completing tests.

2. Phishing Scams

Phishing scams are one of the most prevalent and damaging types of scams out there. According to the FBI, phishing scams were the most common type of cybercrime in 2020, with 241,324 reported incidents in the US. Alarmingly, this was almost double the figure from 2019. With phishing scams on the rise, it’s never been more important to be vigilant.

Scammers use email or text messages to trick you into handing over your personal information. They will often impersonate a company you know and trust, for example, Apple, Netflix, or Google. These emails can often look legitimate, complete with all the expected branding.

There are different types of phishing emails, but the goal is always to get you to hand over your username and password, or bank details, either by tricking you into opening a link or an attachment. When you click on the link, you’re taken to a website that looks legitimate and asked to log in. When you submit your username and password, it gets sent to servers operated by the scammers.

Here are some ways you can avoid falling for a phishing scam:

• If you receive an email from a company you trust saying they have noticed suspicious activity on your account, don’t follow the links within the email. Instead, sign in to your account by entering the legitimate URL into your browser.
• Look for spelling and grammar mistakes in the email.
• Pay close attention to the URL within the email.
• Ignore emails with a generic greeting like “Hi Miss/Sir”. If you have an account with a company, they know your name.

3. Spear Phishing Scams

While phishing scams work by targeting large groups of people with generic messaging, spear phishing takes a more personal approach. Spear phishing is a highly targeted type of attack that involves bespoke emails and tons of research.

Since spear-phishing scams are a lot more time-intensive for the scammer, they typically target high-profile individuals or companies. For example, they might use LinkedIn to research the employees within a company and the third-party vendors the company uses.

To understand how this works, let’s use an example with made-up companies and individuals. Through research, the scammers discover that NovaGigaMarketing buys email software from a company called EmailHaus. Through LinkedIn, they can also tell that someone named Tom Handler is the account manager for EmailHaus within NovaGigaMarketing.

If NovaGigaMarketing’s email addresses follow a simple logic like t.handler@novagigamarketing.com, they can go straight ahead and contact Tom. They will also spoof an email domain from EmailHaus to look legitimate and even use LinkedIn to find the name of a person in sales at EmailHaus. Now all they have to do is send a fraudulent invoice or say there was a problem with a recent payment.

4. Mystery Shopper Scams

Mystery shopping can be a fun way to earn some extra cash while buying the products you already like, and there are plenty of legitimate opportunities out there. Retailers hire a company to evaluate the quality of their service. These companies then instruct a mystery shopper to make a purchase and report on their experience. Unfortunately, there are just as many mystery shopper scams as there are legitimate opportunities, so how do you tell the difference?

There are some telltale signs that a mystery shopper ad is fraudulent. Firstly, legitimate mystery shoppers typically get paid between $7-$15 per job, so if the monetary reward is very high, say, $100, then it’s probably a scam. Secondly, if they ask you to pay to register, get certified, or get access to jobs, it’s probably a scam. You should also be aware of opportunities you get over email, and particularly ones that guarantee you a job as a mystery shopper.

5. Shopping Scams

Ever wanted to buy a high-quality product for a heavily discounted price? Well, that’s precisely what shopping scams rely on. Shopping scams work by encouraging you to purchase products online, but the catch is you will never receive the product in your mailbox. These scams can be difficult to spot because, from the outside, there’s no difference between a small ecommerce company you’ve never heard of and a shopping scam.

Typically, you’ll see an ad on social media or in your inbox and be directed to an ecommerce site. Here you’ll see lots of great products – often very high-quality products – for a discounted price. If you buy a product, that money will leave your bank account, and you might even get a confirmation email. However, after waiting a few weeks, you’ll start to realize something seems off, and the company will be radio silent.

The best-case scenario when you fall for a shopping scam is that your bank will reverse the purchase. If this doesn’t happen, then you’re left with one of two outcomes. Either you simply lose the money you’ve spent, or the scammers use your credit card to make additional purchases.

If you want to avoid shopping scams, it’s a good idea to check reviews on Google, TrustPilot, Yelp, Facebook, Better Business Bureau, and other places before you buy.

6. Cryptocurrency Scams

It used to be that cryptocurrencies were firmly in the realm of the super computer-savvy nerds or organized criminals who wanted anonymity. However, this has changed a lot in recent years, and now cryptocurrencies like Bitcoin and Etherum are firmly in the mainstream. Cryptocurrencies everywhere, but so are the scams!

Here are some of the most common cryptocurrency scams you need to be aware of:

Fake Bitcoin Exchanges

Exchanges are digital marketplaces where you can buy and sell digital coins using real money. In 2017, the South Korean Authorities exposed a fake Bitcoin exchange called BitKRX, which was the biggest trading platform in the country. How does a phony exchange work? Essentially, it looks just like a real exchange; only when you come to cash out your money, you’ll be hit with a series of obstacles, making it impossible. 

Worthless Initial Coin Offerings (ICOs)

A scammer may encourage you to invest in a company in exchange for a stake in the company. Sometimes these will be fake companies. Other times, the company will be genuine, but the coins are inflated or worthless, and ultimately, you’ll lose money.

7. Puppy Scams

The COVID-19 pandemic has caused a sharp rise in the demand for pets. If you’re working from home, why not have a furry friend around to keep you company? Sadly, scammers have caught on to the demand, and online puppy scams are rife.

Here’s how it works. The scammers put up advertisements for animals they don’t actually own. They will ask you for a deposit to secure the purchase, as well as money for vaccinations, health checks, insurance, and so on. They will take your money, but you’ll never see the pet!

Here are some ways you can avoid falling victim to a puppy scam:

• Always visit the puppy in their home before you hand over any money. While you’re there, you can also look for signs that the animals are well cared for.
• Ask for the total cost of purchasing the puppy. If the sellers ask for additional money, you can push back and hold firm on the agreed price.
• Be wary of ads for free or heavily discounted pets. These ads will usually say they are only giving the pet away because of a new job or a change in work circumstances.

8. Nigerian Scams

If you’ve spent any time on the internet, then you’ve probably heard of Nigerian scams. But despite being one of the oldest and most well-known scams out there, many people still fall victim every year. In 2018, American’s lost $703,000 to this type of fraud.

Typically, you receive an email from someone overseas who claims to be royalty. They usually have an elaborate story about how large sums of their money are trapped in bank accounts they can’t access due to civil wars, political instability, or tax restrictions. The fraudsters will say that they need your help to get their money out of the country. They will ask to transfer their wealth to your bank account and offer you a hefty percentage of it as a thank you. Here’s the catch – they will also ask you to send them a fee to cover the transfer charges. Once you pay this fee, they disappear.

Do all Nigerian scams operate out of Nigeria? No, they can operate from anywhere in the world. The scam got its name because the first wave of scams came from Nigeria.

9. Romance Scams

With the rise of smartphone dating apps, online dating is more popular than ever. However, instead of finding romance, some of those looking for love find a scammer. According to the FTC, romance scams caused a record-breaking $304 million in losses in 2020.

So, how does a romance scam work? The scammer creates a fake profile on a dating website or social media sites like Facebook and Instagram. They then initiate a conversation with someone and earn their trust over time through frequent talking and messaging. Romance scams can go on for months or even years! Once the scammer thinks you’re invested and have feelings for them, they will make up a story and ask for money.

Here are some signs you could be dealing with a romance scam:

• The person avoids meeting or has a convenient reason why they can’t meet for a long time, for example, working on an oil rig.
• Their profile picture is very attractive, and they have very few photos. Of course, beautiful people use dating sites too, but scammers usually always pick a very attractive person for their fake online persona. You can use Google’s reverse image search feature to find the origin of photos online.
• The interaction gets intensely romantic very quickly. Scammers like to speed the process along so they can get your money sooner!
• They ask for money. 

10. Debt Relief Scams

Debt can be a huge burden, often causing a great deal of emotional distress. Being in debt can feel like a never ending hole you will never be able to climb out of. Sadly, some scammers try to exploit people in debt by offering them false hope.

Some scammers will approach a person in debt and offer them a way to get out of debt quickly and cleanly. They will also ask for an upfront fee to get the process started. Other scammers will impersonate debt collection companies and work out a “payment plan” or offer to enroll you in debt forgiveness programs. Although the exact techniques differ, you’ll always be asked to hand over money to help reduce your debt faster.

Finances can be complicated, and scammers rely on people’s lack of literacy in this area. Actual debt relief companies do exist and can be a great help to those struggling, so how do you spot the real and the fake? Typically, scammers will guarantee they can eliminate your debt quickly, encourage you to cut off contact with creditors, be cagey with information, and ask for upfront fees.

11. Fine Print Scams

Okay, we get it; life’s too short to read the fine print. If you read at an average pace, it would take you 31 minutes and 24 seconds to read TikTok’s fine print, 30:30 minutes to read Apple’s, and 30:12 to read Zoom’s. Reading the fine print for every company you interact with isn’t always doable, but there is an excellent reason to give the fine print a quick scan.

Less reputable companies sometimes but hidden terms in the small print. These hidden terms can be things like:

• Redundant fees you didn’t know you had to pay.
• A costly subscription you were unaware of, for example, “in 2 months we will charge X to your card”.
• Hefty cancellation fees for terminating the contract sooner.

If you don’t have the time to read the fine print, try Googling the company to see if anyone has encountered problems with unexpected costs.

12. Fake Lotteries

Fake lotteries are another scam that prays on your sense of hope – who doesn’t want to win a large sum of money and retire in the Bahamas? In this scam, you are usually contacted via email and told you have won a large sum of money in an overseas or online lottery. In reality, this lottery doesn’t really exist.

To claim your money, you’ll be asked to contact someone who is an official at the lottery organization. It’s also at this stage where you’ll be asked to keep your win a secret and to respond quickly. They’ll tell you that if you don’t respond quickly, your claim will be voided. Scammers love to create a sense of urgency because the longer you have to think about something, the more likely you are to figure out something is off. The quicker you act, the less time you spend thinking.

So, what’s the point of this scam? Typically, it’s about identity theft. When you attempt to claim your winnings, the scammer will tell you they need certain documents to verify your identity. They might ask for copies of official documents like passports, driver’s licenses, and utility bills. They might also ask you to pay various fees, for example, legal fees, banking fees, or taxes.

13. Fake Charities

In this scam, you’ll be asked to donate to charities that don’t actually exist. It’s depressing to think this type of scam exists at all, but here we are. Scammers aren’t known for their strong moral compasses.

Often scammers will try to exploit emotive events going on in the world. For example, if there has recently been a natural disaster where many people are left homeless and hungry. They might also pick charities that revolve around children or people with cancer because this also strikes a strong emotional response.

Of course, any money you donate to the charity is actually going straight to the scammer. To avoid falling for this scam, look for approved lists of charities you can donate to or research the company that contacted you. If they are a genuine charity, they will have official documentation you can find online to back this up.

14. Fake Surveys

If your email address has ever found its way onto one of those third-party marketing databases, then you’re probably familiar with survey scams.

Essentially, you receive an email asking you to take part in a survey in exchange for an attractive reward. This reward might be a considerable discount, say 95% off select high-value products, or a chance to win an expensive item, like an iPad. Like in other scams, there will be some urgency to the messaging. For example, it might say, “only 5 iPads left!” or “Survey spots are filling up, complete it quickly so you don’t miss out”.

Clicking on the link will send you to a webpage to complete the survey. The questions are usually pretty typical of these types of surveys, things like “How many times a week do you use X product?” and so on. The scam comes after the survey! Once you’ve answered the questions, you’ll be asked to submit personal details to claim your reward. In some cases, you’ll also be asked to pay a delivery fee for the item you’ve won.

15. Fake Antivirus Software and Other Malware

Malware is short for ‘malicious software’ and malicious it is! Several different types of malware can accidentally and unknowingly end up on your computer or phone.

Here are the most common types of malware to be aware of:

• Viruses: These are designed to corrupt your data, reformat your hard disk, or shut down your system. They can also steal your personal information.
• Trojan horse: This type of malware disguises itself as a harmless file, so you get tricked into installing it. Once it’s on your system, cybercriminals can access your computer to modify files, steal data, monitor your activity, and more.
• Spyware: Spyware is designed to work silently in the background, monitoring your browsing habits, collecting your keystrokes, and harvesting your login details.
• Ransomware: Ransomware locks you out of your computer or files and demands payment for releasing them.
• Adware: Adware will pollute your computer with aggressive ads, change your browser settings, modify your homepage, collect data on you, and more.

If you get malware on your computer, then you’ll want to remove it as fast as possible. Unfortunately, cybercriminals have designed a scam to exploit this need too. Some antivirus software is actually a virus itself and will do more harm to your computer! Always search for reputable providers of antivirus software.

16. Freebie Scams

We all love free stuff, and scammers know this. Even when you are offered free things from a legitimate company, it’s worth remembering the phrase “if it’s free, you’re the product”. That isn’t to say you should never accept free stuff, but just remember free stuff can often be more hassle than it’s worth.

But what happens when you’re offered free stuff from a less reputable company? When legitimate companies provide free items, the monetary value of those items is typically very low – for example, a free sample of a new Shampoo or a car air freshener. If you get offered a free item that’s very expensive, like an iPhone, then it’s almost definitely a scam. The scammers are hoping you want the item so much that you decide to take the risk and fill in your personal details and maybe even credit card information.

17. Pre Approval Scams

Applying for a credit card can be an anxiety-inducing experience if you have poor credit. After all, if you get declined, your credit score can go down even further. This is why people feel much safer applying for credit cards for which they have already been pre-approved. These deals can often be very attractive, offering high credit limits and very low interest rates, on top of guaranteed approval. However, they often come with fees.

Scammers try to exploit this desire for increased financial security by offering fake pre-approved credit cards. If you sign up, they’ll ask you to pay the fees upfront. Legitimate credit card companies will never ask you to do this.

18. Hijacked Socials

In this scam, hackers gain entry into one (or many) of your social media accounts and hold them ransom. They will often ask for payment to release the account back to you. And in some cases, the scammers will try to dial up the pressure by threatening to post embarrassing or sensitive material publicly – for example, private information from your messages. If your credit card information is linked to your account, they might also make fraudulent purchases.

This type of scam is very successful at playing on urgency. People often have a lot of very personal or even valuable data on their social media accounts. Even if you don’t have something you would be embarrassed about, you might have photos on there that no longer exist elsewhere.

If your social media account gets hacked and you’re asked for money, don’t hand it over. Instead, act fast to contact the company and make them aware of the hack. The big social media companies will lock your account while investigating and ask you to verify your identity to get the account back.

To avoid falling victim to this scam, always use a strong, unique password and two-factor authentication. In 2016, Mark Zuckerberg’s Twitter account was hacked because his password was “dadada” – don’t be like Mark!

19. E-Card Scams

E-Cards, otherwise called electronic or digital greeting cards, are just what they sound like – a digital version of a physical card you would usually send to your friends or family.

Scammers sometimes hide viruses, trojans, spyware, and adware inside E-Cards. They will then impersonate someone you know and send you the e-Card. Sometimes you’ll know right away because your phone or computer will start exploding with ads or lock up completely. Other times, the malware will just silently collect your data in the background.

If you get an E-Card from a total stranger, then it’s best just to delete the email. However, if you receive an E-Card from someone you know, it might be a good idea to send them a message asking if they did, in fact, send you the E-Card.

20. Travel Scams

This is another scam that has been around for a while but has had a resurgence due to the pandemic. For the last year, travel has been severely restricted for most of us, and many people are itching to get away.

There are a growing number of online travel scams, and we can’t cover all of them here, but we will cover the main ones.

Many travel scams involve offering you free stuff, for example, free airline tickets or free amusement park tickets. This type of scam is similar to a phishing scam. You’ll typically see an ad for free airline tickets on social media and be told to click the link to fill out your details. Sometimes they will even present you with a fake Facebook login first, saying they need you to sign in again for security reasons. If you do this, the scammers now have access to your Facebook account and your entire contact list. Like some other scams on the list, it could also be designed to ask you for an admin, processing, or shipping fee for the tickets.

Another common travel scam is called the “Fake flight confirmation email” scam. Frequent flyers are typically the target for this type of scam. Essentially, you get an email saying you haven’t confirmed your ticket for an upcoming flight, and you need to take action immediately or risk losing your seat on the plane. Once you click on the link, you’ll be taken to a website that looks legitimate (but is actually fake) and asked to log in to your frequent flyer account. The scammer can then spend all of your hard-earned air miles!

How Can You Protect Yourself Online?

And that concludes our list of 20 online scams to be aware of in 2021! If you want to protect yourself against these scams, use the following rules as a guideline:

• If something looks too good to be true, it probably is!
• Never pay for free items.
• Never hand over more information than would be necessary for that type of purchase. There’s no reason a sock company needs your social security number!
• Do your research and be careful about clicking links or downloading files. If in doubt, navigate to the company’s website yourself.

Be safe out there!