Internet scams have become more sophisticated over the years, making it difficult to detect them, unless you are alert to the key pointers indicating a probable scam. A study conducted by BackgroundCheck.org revealed that between 2005 and 2009, Internet scam complaints grew three-fold from about 100,000 per year to more than 300,000 per year. Identity Theft and Advance Fee Fraud were the most commonly reported scams by the complainants during this period. Businesses and individuals lose hundreds of millions of dollars each year to online scams.

List of Key Pointers

Here is a list of pointers publicly advised by organizations such as the FBI, Google and Scam.com that work actively to reduce the menace of Internet scams. These pointers can help you identify online scams, frauds and other schemes of dubious nature:

• Conduct a web search about the company or the sender, if you receive an unsolicited email asking you to fill out a form or give credit card information.
• If any company unknown to you asks for upfront charges on any existing online or offline services you may be using, get alerted and verify directly with the service provider before writing a check.
• Watch out for online get-rich-quick schemes that ask for an upfront fee, however low. Their purpose may be to get access to your credit card or bank account and impose large charges later on.
• Beware of companies posing as Google agents guaranteeing top placements in search results for an upfront fee.
• Beware of anything that resembles a pyramid scheme, offering you commissions on recruiting more members.
• Online scammers typically cut-and-paste images of logos of top news channels and publications, “five star reviews,” and “as seen on TV.” Unless such images are linked to legitimate sites, beware of their validity.
• Watch out against emails informing you of a lottery win or a promise of large sums of money to be transferred to your bank account.
• Avoid clicking on the links provided within any unsolicited email.
• If a well-known business or brand is identified in the unsolicited email, log on directly to their business website instead of linking to it via the email received.
• If you have been contacted unsolicited, conduct a search of the sender’s name or company name on Scam.com forums or on a search engine such as Google.
• Avoid doing business with a company that fails to provide its physical address, telephone number, license or registration number and any other verifiable information that you may ask for.

Common Characteristics of Online Scams

Internet scams and frauds typically play upon the common weaknesses of human beings, which results in certain characteristics that are common to most of these scams:

• There is a sense of urgency in their solicitation. Their incredible sounding offer is typically limited to a very short period, and prompting you to act immediately.
• There is an underlying warning that if you fail to verify or update information they are soliciting, your account will be suspended or a fine will be imposed.
• They ask for your sensitive personal information such as bank account details, credit card number, banking IDs and passwords, social security numbers, and date of birth.
• They include logos, brands and links that look legitimate.
• Their links typically include the name of a legitimate well-known company or organization.
• They often have incorrect grammar and misspelled words.

To lend your helping hand to curb the widespread menace of Internet scams, file an online complaint at www.ic3.gov if you receive a scam email.