Common online scams and how to identify them

Cyber criminals are constantly coming up with a huge number of cunning schemes to steal your money and make off with your identity. They know some of the oldest tricks in the book to get you to hand over your personal information - and an incredible number of people fall prey to these crafty plans every year. According to the latest data from the Australian Competition and Consumer Commission (ACCC), there were almost 92,000 scam-related contacts reported in 20141! 

The internet has become the perfect breeding ground for these kind of crooks. With so much information at our fingertips, it can be incredibly difficult to pick the good from the bad - so how can you identify a scam? Here are some the most common and how you can avoid them. 

Online trading scams

Online auction sites have grown in size and number. There are so many products available at just the click of a button, it's little wonder that so many people love browsing sites for a bargain. However, scammers use these portals to draw you in to steal your money. Whether they set up a phony web page, catch your eye with a tantalisingly low price or rig the auctions to make sure you're the 'winner', buying and selling scams can cost you big time. The ACCC report found that 65.4 per cent of victims of auction scams suffered a financial lost in 20141 - so how can you avoid becoming the victim?

It can be very hard to get your money back once you've made the transfer, so it's important to look out for the warning signs. Watch for items listed at a very low price, poor ratings or overly insistent vendors. If they try to convince you to make a purchase outside the site, it's likely they'll make off with your credit card or banking details. 

Phony dating profiles

Internet dating scams were the most lucrative scam of 2014, according to the ACCC1. Using a fraudulent profile, a scammer will try to build a rapport with you over the internet and try to convince you to send them money, gifts or reveal sensitive details. These are usually sophisticated schemes, lasting for weeks and months as the criminal behind the keyboard draws out of you what they want. Their stories are elaborate and play on our compassionate side - but you should never let your guard down. 

Their profile will probably be riddled with spelling mistakes and inconsistencies; their photos may look too good to be true; and they might seem a bit too persistent or eager to share their feelings. In any of these scenarios, alarm bells should start ringing - and above all, if they ask for money, it's time to cut the cord! 

Fake online pharmacies

Let's face it: We all love a good deal. The internet is a treasure trove for the eagle-eyed bargain hunter, but there are many scammers who can take advantage of your thrifty tendencies to steal sensitive data. Fake pharmacy scams are just one of these tricky measures. Criminals send out spam emails that offer drugs and medicine at heavily discounted prices, either to convince you to divulge your credit card details or to plant harmful software on your computer. 

There are some tell-tale signs. The email mightn't provide a physical address or contact phone number, or the company is based overseas. It will often offer hard-to-get medication, or list well-known brands. Whatever you do, never click through on links, call telephone numbers provided in the message or enter personal information without being 100 per cent sure the deal is genuine. 

These are just a few of the measures cyber criminals can go to to snag your most sensitive details. There are plenty more, but never fear -for about the price of a cup of coffee ($3.99 or $47.88 for an annual subscription) a month, Identity Watch can monitor your details online in places where crooks illegally trade personal data.

1 Targeting scams: Report of the ACCC on scams activity 2014. Australian Competition and Consumer Commission. May 2015.