It is practically guaranteed that there will be plenty of scammers trying to trick you into giving away personal information and/or money this year. Some scams have been around for many years, some are new, and some just put a new high-tech twist on “old favorites.” Watch out for these scams:
1. Student Loan Forgiveness Scams
Student loan forgiveness applications became available in 2022, so it's no surprise that scammers would try to capitalize.
"Student loan forgiveness scammers may contact you via phone or create phony application sites aimed at stealing your Social Security number or your bank account information," explains Experian. (1) "They may put pressure on their victims with fake urgent messages that encourage you to apply for debt relief before it's too late. Then they'll charge you a hefty application fee. In reality, it's a scam. It costs nothing to apply for student loan forgiveness, so anyone who asks you to pay a fee is committing fraud. In addition, the U.S. Department of Education won't contact you by phone. You can stay safe and avoid student loan forgiveness scams by going directly to the Department of Education website for information about applying for forgiveness."
2. SIM Swapping
In SIM swapping, a scammer hijacks your cell phone number by convincing your phone provider that they are you and getting them to associate your phone number with a new SIM card in the scammer’s device. Then they can get your emails, text messages, and other sensitive data. They may also be able to gain access to your bank account and even lock you out of it. To avoid falling prey to SIM swapping, use multi-factor authentication, ignore requests for personal information, and use a PIN number to secure your phone.
3. Crypto Scams
Scams related to cryptocurrencies have become increasingly prevalent in recent years, and this will no doubt continue this year. They may prey on anxieties related to cryptocurrency performance or promise exciting investment opportunities. They may also mention fake prizes and contests. According to Experian, some are even impersonating celebrities. If you use crypto, make sure you use a secure wallet. Always research before making any investments and be careful about who you trust.
4. Phone Scams – They’re Not Going Away Anytime Soon
Phone scams have become so prevalent that many smartphones warn users of likely scams when calls are received from certain numbers. While one could expect this to be a deterrent to scammers, they don't seem to be slowing down. Phone-based scams continue to be a major issue. Beware of fake job offers, fake bank calls, big contest prizes, those promising to get you money in relation to an accident, and other suspicious tactics.
5. Phishing
Phishing is another common scam tactic that just won't go away. That's because scammers have been successful using it for years. Phishing attacks have continued to increase over the years, and there's no reason to think that won't be the case this year. Pay attention to email addresses and URLs, and avoid sending personal information unless you're absolutely sure that you're sending it to the right person or company. Don't click on links from emails, even if they look like they come from a legitimate, known company. Instead, open a new window in your web browser, and visit the site on your own.
6. Smishing
It's not just email-based phishing you'll need to watch out for. Also beware of "smishing." "Smishing is a phishing attack that happens over text messages (SMS) instead of email," notes Fingerprint. (2) "Attackers pose as trustworthy entities, such as a bank or government agency, and try to get victims to click on a malicious link or share sensitive information. Similar to suspicious emails, these messages will be sent via text and include nefarious URLs. While less than 35% of people in the US know what smishing is, reports of smishing have tripled over the past couple of years, costing victims and businesses millions of dollars."
The same pointers apply to smishing as for phishing. Avoid suspicious links, and never send personal information.
Stay on guard, and educate your family and friends about what to watch out for. In addition to the above scams, watch out for new ones. You can find out more about identity theft and internet fraud on nsbank.com.
1. https://www.experian.com/blogs/ask-experian/the-latest-scams-you-need-to-aware-of/
2. https://fingerprint.com/blog/four-fraud-threats-2023/