| Why do scams work?
Here are my 4 E’s of an effective scam:
- Ego: Some people think they are too smart to fall prey. Their overconfidence says they don’t need to be cautious and that exposes them to unnecessary risk.
- Evolution: Scams are diverse and sophisticated – it’s not a Nigerian Prince asking you to share his millions anymore! The constant changing and diversification of scams is fuelled by new technology, making it harder to spot a fake.
- Education: A lack of awareness means you’re a step behind a fraudster, and you’re unlikely to recognize the newest and greatest plots.
- Exposure: We’re online a LOT, constantly seeing fake ads, sharing our email addresses to get discount codes, commenting on social media posts – you name it. We constantly expose ourselves to predators.
Techniques Scammers Rely On
The first strategy scammers use is emotional manipulation. They’ll create uncomfortable feelings like fear or urgency to get you to act quickly. They’ll also go the sympathy and goodwill route to appeal to your good nature and empathetic side so you help them.
The second strategy scammers use is cognitive bias. It’s our predisposition to a certain mindset that would make you more willing to comply. A few examples:
- Optimism Bias: You don’t automatically suspect a scam
- Truth Bias: You assume people are telling the truth
- Authority Bias: You trust and comply with authority figures (like police or government)
The third strategy scammers use is influence. They’ll compliment you or pretend to have similar likes so they build a relationship with you. They’ll act as experts or authorities so that you trust them. And, they’ll commit to it, starting slow and building over time and increasing their requests.
How Did Scammers Get So Good?
They practice. They aren’t afraid to fail. They don’t take no as an answer. And, perhaps most importantly, they embrace technology. It catches victims unaware and drastically improves their reach and persuasiveness. Here are their fanciest tools.
- AI: AI makes it easy for scammers to create professional-looking websites, social media content, online ads, fake photos, persuasive emails and texts, and so much more.
- The Dark Web: Scammers can buy nearly any data they want, plus fake identities, malware tools, stolen credit card numbers, ransomware, a fake escrow service or even hire hackers.
- Deepfakes: Fake videos that clone real people and real voices are easy to create with free or cheap specialized software. These fake videos can promote products, laud fake charities or causes needing donations, even endorse ponzi schemes and pump-and-dump investments.
- Spoofing software: Fraudsters can mimic legitimate phone numbers, emails, or websites and even trick you into thinking you’re dealing with a real person you know.
Red Flags
Scammers aren’t just straight up asking for your SIN and banking info anymore. Here are some common themes to watch for:
- Urgency, including limited time offers or requests to act now
- Threats, like an account will be closed, you’ll be arrested, or a fine is forthcoming
- Uncommon payment forms, like wanting gift cards, cryptocurrency, or Venmo transfers
- Secrecy, warning you not to tell friends or family or alert law enforcement
- Poor quality, like spelling errors, weird links, or other telltale signs AI has been hard at work
- Reciprocity, as in you get hired but you pay for your own training, or you won a prize but you have to pay to receive it
How to Avoid Falling for Scams
If you don’t want to be blindsided by a scam, the first step is to know that scams exist. Staying current on the latest schemes will go a long way. Be skeptical about almost everything online! Installing ScamShield, call blocking or anti-virus software can help prevent a scam artist from contacting you. Multi-factor authentication is a great way to stop scammers from accessing your online accounts.
If you get faced with a scam, take a step back and think about the legitimacy of the situation. Call a trusted friend or loved one and run the situation by them. Just hearing it out loud might make you come to your senses! Practice saying no. Disconnect from the situation and reach out to the company independently (like the CRA, bank, cell phone company or store) to confirm the request or offer is real. Finally, monitor your accounts for any unauthorized activity if you think you might have given away too much information.
Conclusion
If you’d like to learn more, the FCT fraud insights centre is a great place to start. Or, get your information in video form in Mastercard’s Anatomy of a Scam docuseries. Hopefully shining a spotlight on these tactics keeps your safety top of mind. Or as Bert and Gert would say, “Stay Alert, Stay Safe”! |
