Beware of Online Scams

You may think that you are already too sophisticated to become a victim of scams. Well, if there are suckers born every minute, you may find it difficult to keep your guard. No matter how intelligent or educated you may be, there might be one equally intelligent and educated scammer who can make a fool of you and run with your money, or worst, your identity! There are many forms of con or confidence tricks out there and it may take several volumes of books or dissertations to document and classify them all. This blog post will only focus on a few common online scams.

Here are some common online scams that you should be wary about. This list is far from being detailed or comprehensive but it can help you avoid becoming a victim.

1.) Phishing scam -- This scam relies on imitating legitimate websites, complete with logos, forms, graphics and functional applications. You may accidentally stumble-upon this sites as you surf the web or you may receive an email luring you to these sites. Some phishing sites are masking as e-commerce sites, selling some bogus products. However, most phishing sites are clones of popular websites, such as Yahoo.com and Facebook.com. The main purpose of phishing sites is to "fish" or collect information, which may include user names, passwords, credit card numbers, and PIN numbers. You may end up being a victim of identity theft.

2.) Auction fraud -- Unlike phishing scams, most auctions frauds are perpetrated using legitimate auction sites, such as eBay.com, Sulit.com and Bidz.com. You may end up paying for a product that will never be delivered. One way to avoid this type of scam is to use a secured means of payment, such as PayPal.com. The actual transfer of payment can be temporarily held or cancelled if the item that you ordered does not arrive on time. Another way to avoid this scam is to ask for the tracking number of the courier service that is supposed to deliver the package. Most courier companies have online facilities that allow you to track shipments. A reversed scenario can happen if you happen to be the legitimate seller asked to send the item you are selling.

3.) Nigerian 419 Letter -- The name of this scam is derived from the section of the Nigerian Penal Code that this scam violates. Basically, this scam is a bogus money laundering scheme that asks you to be an accomplish. Emails of this scam are sent to prospect random victims. The letters typically start in this manner:

"DEAR SIR/MADAM: I REPRESENT THE RECENTLY DEPOSED MINISTER OF AGRICULTURE FOR NODAMBIZIA, WHO HAS EMBEZZLED 30 MILLION DOLLARS FROM HIS STARVING COUNTRYMEN AND NOW NEEDS TO GET IT OUT OF THE COUNTRY..."

4.) Lottery/Raffle Scam -- This is a type of email scam that is too good to be true. You may have already received an email congratulating you because you have won millions from an online lottery that you never joined. In some versions, the prizes are in the forms of goods, such as computers, Xbox, cameras, iPods, Plasma TV, etc. Would-be victims are asked to pay for the processing fee or shipping cost. Prospective victims will be lured to phishing sites and required to submit their credit card or debit card details.

5.) Freelance Work Scam -- This type of scam commonly victimized those who are desperate and gullible enough to find easy money online. Prospective victims are given freelance tasks that need to be finished within specified period of time. Job offers may include writing, programming, graphic designing, and marketing. Victims are not paid after submitting their works. Some scammers may require "test" works that are unpaid. Another version of this scam is the "data entry" scam that promises lucrative income by simply typing data. Most of these so-called "data entry" opportunities require fees in order for a job-seeker to be given the job.

NOTE: There are actually many legitimate opportunities online. However, you must need to weed-out the bogus ones to avoid becoming a victim.