The ongoing challenge in thwarting scams lies in scammers’ adeptness at constantly refining their tactics, leveraging technological advancements to exploit targets more effectively. According to Jake Baron, a spokesperson for the Better Business Bureau, combating scams is akin to playing whack-a-mole, where new tools are devised, but scammers quickly adapt.
Scammers have evolved to excel in impersonating legitimate entities, creating websites and messages that mimic reputable healthcare providers, businesses, and banks. Baron notes a reduction in grammatical errors and other typical signs of scams, making detection more challenging.
Criminals are capitalizing on technological innovations like artificial intelligence (AI) and honing their skills in psychological manipulation. Aaron Baker, the founder of Scam Alert, highlights the growing proficiency of scammers, particularly in overseas call centers, where they are trained to minimize accents and establish emotional connections with targets.
Here are six scams that experts caution against in the current year:
- Check Cooking Scam: Departing from the previous check-washing trend, criminals have adopted a less messy approach called check cooking says Michael Porter, a private investigator with Haywood Hunt & Associates Inc. Thieves capture a digital image of a stolen check and use commercially available software to modify it, creating an authentic-looking check with watermarks. This allows criminals to print a fraudulent check or deposit the manipulated image through a bank’s mobile app.
- Retail Fraud: Described by Michael Richards from Centaur Security Services located in Guelph, Ontario, retail fraud involves theft from commercial retail establishments resulting in financial loss. With the rise of e-commerce, virtual retail fraud has surged, driven by darknet cybercriminals. DarkOwl analysts review popular methods used by cybercriminals and discussions related to retail fraud observed in underground criminal networks.
- Voiceprint Scams: Advancements in technology enable thieves to record your voice and generate a deepfake version using software. This voiceprint can be exploited to impersonate you, gaining unauthorized access to sensitive accounts or applying for official documents like driver’s licenses.
- Mortgage Fraud: Scott Green from Toronto-based home equity loan lenders Homebase Mortgages warns against mortgage fraud, emphasizing that individuals who knowingly provide false information may involve themselves unwittingly. Mortgage fraud intentionally distorts information to secure financing, and borrowers engaging in misrepresentation may face financial consequences and criminal charges.
- Delayed-Action Sweepstakes Scam: A variation of traditional sweepstakes scams involves scammers seeking personal information instead of immediate payment. Fraudsters use this information for identity theft, leading to prolonged and insidious financial exploitation.
- Virtual Celebrity Scam: Exploiting the surge in celebrities participating in online events during the pandemic, scammers impersonate celebrities or their representatives on platforms like Instagram or Facebook. Building trust with fans, they subsequently request money for fabricated reasons, such as resolving legal issues or funding alleged financial needs.
- Loan Fraud: Sarah Dwyer from Mortgage Central Nationwide located in Toronto, warns against loan fraud, where criminals illicitly use personal information to obtain a loan. Fraudsters may open mortgages or reverse mortgages in victims’ names, leaving them responsible for repayment.
Given that loan fraud involves the theft and misuse of personal information, it falls within the realm of identity theft. In 2020, loan or lease fraud ranked as the fourth most prevalent form of identity theft.
Scammers deploy various methods to access personal information, including phishing scams and coercing individuals into downloading malware. The increasing prevalence of data breaches has made purchasing account details on the Dark Web a convenient option.
With many lending agencies requiring minimal information during the loan application process, acquiring key pieces of information, such as Social Security numbers or bank account numbers, is sufficient for identity thieves to secure a loan.
While security measures continue to evolve, the adaptability and sophistication of scammers underscore the ongoing need for awareness and caution in navigating the digital landscape.
