Online scams and how to avoid them

source: gmanetwork.com

With the proliferation of more affordable gadgets and network data plans as well as the popularity of social networking websites more and more people are getting connected online.

The internet is a truly great way to connect with friends and families, increase your income either buy finding a better job or online selling as well save up a couple of pesos by buying useful items at bargain prices.

However, despite all the wonderful advantages of the internet, if you're not careful, you could fall into the trap of getting scammed. The Internet, like the real world, also has its share of dishonest and devious netizens to watch out for.

Here are just a few online scams you need to guard yourself against:

1) Congratulations-You-Won-Something Scams
You'd likely see this happen as an email in your inbox or when you visit a website. The email would usually be titled something like "You have won XXX from X Company/Organization/Lottery". On websites it's typically one brightly flashing ad saying "Congratulations! You are the Nth visitor of this site. Click here to claim your prize".

When you take the time to read them you will notice that they will try to ask you for personal information. Typically they ask for your full name, birthday, government identification numbers, and your credit card or bank account number. By having these information they can hack your online accounts, assume your identity online and make unsolicited charges to your credit card.

Another tell-tale sign of scam is that they will also ask for a small sum of money explaining this would be for "administrative purposes". You will be asked to wire transfer the amount first so they can process the necessary documentations for you to claim your prize.

When you see this kind of scam just ignore it. If you really want to believe then better check with the actual company concerned rather than just the contact details mentioned in the scam. Because if you really won something then you should be just receiving rather than giving.

2) Get-Paid-To-Do-Something Scams
If you have been searching the internet for home-based work you would come across websites telling about how you can earn from doing easy work like answering surveys or clicking on ads. They would tell you it's free to register and if you are able to refer people to join then you would also earn from a percentage of what they earn. These sites will also entice you to pay a certain fee to upgrade your account because it would mean more work to come your way like more surveys to answer or more ads to click and a bigger percentage of your referral's earnings.

When you go on thinking that you would try to get as many referrals as possible and encourage them to get their own referrals too and also upgrade to increase your earnings then you might just get into trouble. In the end, it becomes a Ponzi scheme where they take funds from new investors to pay old investors. So it could have worked out for some at the start but in the long-run it is bound to collapse and turn to scam. Which means you, who could already be at the bottom end of the triangle will end up getting nothing by the time you try to cash-out. And worst part is if you got your friends and family involved in it too then it would surely sour up your relations with them because you were somewhat responsible in making them lose their money to a scam website.

Word of advice, if you really like to join these Get-Paid-To-Do-Something websites, never make any investments or at least hold-out until you are absolutely sure they are legitimate. You can do research online and see what other people have to say. However it would be better if you use that time though to find a different online jobs like becoming a freelance writer, graphics artist or programmer. Or perhaps take the time to research on regular jobs with higher salary. Hard-earned money is more fulfilling and you would take better care how you spend it as compared to easy money.

3) Price-Is-So-Cheap Scams
The internet is a good way to find bargains. Second-hand market sellers are usually selling low just to turn items they don't use anymore to cash. Serious online sellers can sell low because they are able to give to buyers the cost savings on operational expenses like fewer staff and no store rent, they get from online selling. However despite these logical explanations one should still be very vigilant when it comes to buying online.

Scam sellers would be selling at incredibly cheap deals like 50-80% off from regular price or Buy-One-Take-One promos. They would never agree to a meet-up and will hide from the alibi that they are just too busy or is located at different country/region and hence can only accommodate shipping the item to you. Their accounts would also be newly created on that site where you saw their listing. In terms of feedbacks it would be zero and if there was a few, you better check the credibility of those users because it is highly possible they were just dummy accounts to make the seller look convincing.

Part of their policy is also to ship only when payment is sent. Now this maybe a standard procedure in online selling but if the sellers have all the dubious flags mentioned above regarding their account then it would be best to steer away from purchasing anything from them. Because either they will totally run-off with your money or they send you fake and damaged items which was never mentioned or was put in very small print somewhere in the listing.

There is no harm in trying to look for a bargain but better try to deal more cautiously by only transacting with sellers with a history of positive feedbacks and who will not hesitate to give you warranties and will communicate with you properly not just before a sale but also after a sale.

4) I-Promise-to-Pay-Soon Scams
This is the kind of scam that affects online sellers. It's a trick that some buyers try to pull-off usually on kind sellers who try to be as accommodating as possible. The new sellers are more susceptible to this scam because they still are trying to build their reputation online and hope to get in return positive feedbacks in exchange of giving-in to some buyer requests.

Common to the scenario is the buyer will inform the seller that he/she will pay for the items on a specified date and make the seller ensure to ship on a targeted date also because they need it urgently. The usual reason is that they would be leaving out of town and would be using it ASAP. Trustingly thinking that their buyer will pay at the promised date and being understanding to whatever reasons the buyer gives to receive it on a specified date, the seller would then schedule in advance a pick-up for delivery with their courier and/or instruct their staff to release the item for delivery on that date.

Another variant is that the buyer will already pay for one item but decide to add more items at the last minute and request the seller if they could do combine shipping on the additional items to save on courier charges. They will also inform the seller not to worry because they promise to pay for the additional items immediately.

The sad thing though is that come the promised date, the buyer will then call/text that they would be delayed a few hours or a day in paying but not to worry because they will pay. At this point the seller might be too embarrassed to cancel the scheduled pick-up or feels that it's too late to stop the shipping anymore after the pick-up is completed. Sometimes the seller still chooses to trust the buyer and wait thinking that the buyer is one of their good customers or has long line of good feedback so it is safe to trust. Sadly, days and weeks pass and the no payment is received and the buyer is no longer reachable.

The only way for sellers to avoid this scam is stick to the policy to ship only when payment is received. A good buyer would be able to understand this as safety measure for the seller. In addition, the seller should also not hesitate to work closely with their courier. If there seems to be an issue with the package like payment not received then they should try to contact their courier and request to put the package on hold temporarily. Most courier would be a happy to assist and it never hurts to try.

5) The-Unknown-Middle-Man scam
This kind of scam victimizes the buyer and, to an extent, the seller as well.

When a scammer sees an item he likes being sold online he would contact the seller to ask for the specific payment details and informs the seller to reserve the item to him. The scammer would then try to resell the same item on a different website and would likely mention the word "rush" in the ad to put buyers into action. If the buyer sees the ad and tries to pay for the item, the scammer would now give the payment details of the real seller of the item. After victim buyer pays the account the scammer buyer would now inform the real seller to confirm the payment made and then ship to scammer's address. Of course victim buyer will never receive the item he purchased and would likely go after the real seller because he still has the latter's payment information like bank account name and number or even current address when payment was made through money transfer.

To avoid this scam it is best to deal in person especially for high-priced items. If it is really not possible, then sellers should try to double check the location where payment was sent against the shipping address. Online banking systems like with BDO typically mention where the deposit was made. You may also try to request money transfer to provide you with the contact number of the person who sent the payment. Just explain to them that you are doubtful with the one your transacting and would like to make all the necessary verifications possible. As for buyers, deal only with sellers of good feedbacks and make sure you know who you are dealing with by getting their complete identification. Don't just rely on text message, call them. Hearing their voice can give you at least a better idea whose on the other end of the line. A scammer will try to distance themselves as much as possible from being identified so if they make excuses not to answer your calls then that's a red flag that you're dealing with a potential scammer.

So there you have it. But remember, this short list of five online scams isn't exhaustive; there are lots more out there.

But the one thing you should always remember is to simply always exercise caution, by being critical of those who you share your information with and of how you proceed with online business transactions.

source: gmanetwork.com