Your Financial Future: Don’t get taken by online scams
October is Cybersecurity Awareness Month. Identity theft is a major crime in the United States costing billions of dollars every year.
Barely a newscast goes by without some major headline about another cybersecurity attack. Ransomware, where someone takes control of your computer, has increased by 93% this year, and a whopping 85% of organizations experienced more than one breach in 2022.
Schools, hospitals and companies are often extorted to pay a ransom to get back control of their computers. The average ransom cost was $9.44 million. Organizations of all sizes are targeted, including 43% of small business. Most cyber-attacks, 91%, start with a phishing email. These emails try to get you to open a link to allow the virus to take control of your computer.
People need to be very careful because crooks make fake emails look very legitimate. They often try to copy logos of the real companies. One warning sign is emails often come from a gmail or other generic address. Big companies like Amazon have their name as part of the email address. You also need to be aware of any site requesting personal information such as your Social Security number. Another warning sign is any site requesting payments by way of gift cards or crypto currency.
Some of the top consumer scams have involved things in the news. Hot concerts like Taylor Swift and Beyonce have attracted criminals. Because these tickets were in such demand, people would often respond quickly without doing research. Sometimes it was in the re-sell market and at other times, there were fake sites offering tickets.
There have been some instances where vacation rental properties have appeared online that the scammer does not even own. Pictures are sometimes enhanced to make properties or other rentals appear nicer, or even the addition of something such as a beach. Be careful of the source of your information. High interest rates are making it harder and more expensive to get a mortgage. This is pushing up the demand to rent an apartment. There are scams aimed at college students and the general public. Security deposits and other fees are being requested for apartments that will never be available. The Federal Trade Commission and some state attorneys general have brought charges against some companies for these abuses.
Student loan forgiveness has been a polarizing issue in the U.S. The president and people who might have some of their debts eliminated are in favor. Many people feel it is not fair to the millions who paid back their loans or never took one out. No matter what side you are on, scammers see an opportunity. The Federal Student Aid Office has warned of criminals phishing for information and trying to collect fees for fake programs.
Remember, if someone you don鈥檛 know wants to give you money or if you are told that you won a contest that you did not enter, something is probably wrong. If someone is offering to sell you a hard-to-get item for a very low price, be careful. You are your own first line of defense.
Next week, we will discuss some other ways to protect you and your family from identity theft.
Gary Boatman is a Monessen-based certified financial planner and the author of 鈥淵our Financial Compass: Safe passage through the turbulent waters of taxes, income planning and market volatility.鈥�