Consumers lost an estimated $5.8 billion to fraud in 2021 due to online scams. The vast majority of these are money remittance scams, where a victim will be coursed into sending a scammer money over the internet. These scams can take many forms and are increasingly becoming harder to detect.
In this article, we’ll be taking a look at some examples of these scams and outlining why they’re becoming more effective. We’ll be touching on:
- The rise of big data
- Advanced system scams
- Ease of company impersonation
- Ease of transferring money
Let’s get right into it.
The Rise of Big Data
When a user browses the internet, every single click they make is documented, creating a large database of information on the user. Their likes, dislikes, user information, and sometimes even financial information is all stored online.
Due to the availability of data online, scammers are able to find more out about an individual by heavily following their online presence. For example, while a few years ago, a money remittance scam might not have even known the name of an individual, the scammer could now know an extensive amount about the person they’re trying to scam.
With this, the complexity or originality of their scam can be much more advanced. Instead of launching a cookie-cutter scam on a person, a scammer could get all the data needed to then impersonate someone that the victim knows. By claiming they’re a certain relative, distant friend, or acquaintance, the…