Online and Computer Scams: Difference between revisions

Latest revision as of 20:55, 25 April 2017

This page is used in the Scams to Avoid Lesson Module, a law-related ESL lesson for newcomers to Canada.

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by People's Law School in March 2017.

Technology has opened up new opportunities for people with bad intentions to try to trick you out of your money.

Malware or spyware

You’re browsing the internet. An online ad features an item you’ve been thinking of buying. You click on the ad to learn more. A window pops up on your computer saying "Your personal files are encrypted!" The only way to "release" them is by paying a steep fee. If you don’t pay the fee in the next 72 hours, "you will never be able to recover your files".

This is an example of malware, which is software used to disrupt use of a device or gain access to sensitive information. Some malware is called spyware because it is installed on your device without you realizing it.

Scammers try to install this software on your device so they can fool you into paying them money or gain access to information stored on your device such as bank account details and passwords.

The installation of the software can be triggered in many ways - when you click on a link in an email, download a file from a website, or install free software.

In fact, it is illegal to install software programs on someone’s device without the consent of the device owner or an authorized user (for example, a family member or employee).

Phishing emails

You get an email message that appears to be from your bank. The sender’s name, the layout of the email, the logo - it’s all the same as your bank’s, at least on first look. The email says that your account has been compromised, and you need to visit a website to "verify" your account information. As you look more closely at the email, you see there are some typos, the logo is slightly off, and the address of the website is slightly different from your bank’s website.

This email is fake. It has been sent by scammers pretending to be from your bank, trying to trick you into handing over personal and financial information. This is known as phishing. The email is being used as bait to "fish" for victims.

Once the scammers have your information such as bank account details, credit card numbers, and passwords, they use it to take your money and commit more fraud.

If an email asks you to visit a website to "update" or "confirm" your account information, be extremely cautious. Institutions like a bank or government agency will never expect you to submit your personal information online or by email.

Money transfer scams

"I got an email from a lawyer overseas. A person sharing my family name had died and left behind a large sum of money. The lawyer hadn’t been able to locate any of the dead person’s relatives. He suggested that, because I had the same family name, he could pay the inheritance to me. We could then split the money, rather than handing it over to the government. I just had to pay some taxes and legal fees, and to provide my bank details so they could deposit the money."
- Harry, Surrey

An email from overseas claims that an important event - such as an inheritance or a change of government - has resulted in a person having a large sum of money which needs to be transferred out of the country. The sender claims that if you help with the transfer, you can keep a portion of the money. If you reply to the email, the sender says you will receive your "reward" once you pay various "taxes and fees".

This is a money transfer scam. It is sometimes called a Nigerian scam or 419 fraud, after the section of the Nigerian criminal code dealing with fraud.

There are many variations of the scam, but all aim to steal your money.

You will never be sent any of the money, and you will lose any amounts you pay in "taxes and fees".

Antivirus software scams

"I received a call from someone saying they were from Windows. The caller said my computer had been reported as having a virus that was infecting others. They told me to go to a website so they could fix it. Once I did, they took over the controls of my computer. They then told me that I would have to pay $300 for the "repair". I pulled the power on my computer and brought it to a local company to fix it."
- Kathy, Nanaimo

One of the most reported scams targeting Canadians is the antivirus software scam. You get an email or phone call from a company that says your computer has a virus. They say they can "repair" your computer. This can involve installing software or "taking over" your computer to fix it.

The software they install turns out to be malware or spyware that enables the scammer to gain access to your personal information. Or the scammer insists on a payment for their "repair" before they turn the controls of your computer back over to you.

Never give control of your computer to a third party unless you can confirm they are a real representative of a company you trust. If you receive an unsolicited call from someone claiming to be from “Microsoft Support”, “Windows” or “Apple”, hang up. Technology companies do not make these kinds of calls.

Mobile phone scams

Many of the tricks scammers try with email and computers are also used on mobile phone users.

For example, scammers hide malware in games or apps that you can download on a smartphone. When you download the game or app, the malicious software is installed on your phone. It can then be used by the scammers to steal your personal and financial information.

Other scammers use the missed call scam. They call your phone and hang up so quickly that you can't answer the call in time. You may be tempted to call the number to find out who called you. If it is a scam, you will be paying premium rates for the call without knowing.

Preventing problems

Here are ways to reduce the risk of being the victim of an online or computer scam.

Protect your devices

Password protect your devices. On your cellphone, lock the keypad when you're not using it. Have software installed on your devices to prevent spam, viruses, and spyware. Keep that software up-to-date.

Be cautious using email

When using email, never click on a link in an email, even to log in to well-known sites such as Facebook or Twitter. Go to the site directly and log in there. Don't open an attachment in an email sent by someone you don't know.

Be cautious online

Don’t click on links unless you trust the site you’re on. Don’t download files or applications unless you can verify the source. When you're using social media services such as Facebook or Twitter, be alert for scammers posing as a friend and trying to trick you into clicking on a link to a malicious site.

Erase information

Make sure your information is completely erased before you sell, recycle or discard your computer or cellphone. This involves more than deleting everything. To make sure that your private information is gone forever, you need to "wipe the hard drive" using special software. You can buy this software or have a professional do this for you.

Scams to Avoid © People's Law School is, except for the images, licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International Licence.

@@ Line 1: / Line 1: @@
-{{Consumer Law Wikibook TOC}}
+{{Law-Related ESL Badge
+|lessonname= Scams to Avoid Lesson Module}}{{REVIEWEDPLS | reviewer = [[People's Law School]]|date= March 2017}}{{Scams to Avoid TOC}}
+Technology has opened up new opportunities for people with bad intentions to try to trick you out of your money.
+==Malware or spyware==
+You’re browsing the internet. An online ad features an item you’ve been thinking of buying. You click on the ad to learn more. A window pops up on your computer saying "Your personal files are encrypted!" The only way to "release" them is by paying a steep fee. If you don’t pay the fee in the next 72 hours, "you will never be able to recover your files".
-The Internet provides endless opportunities for selling products, with sales of everything from t-shirts to toys, calendars to collectibles. If a '''scam''' is involved, the item you purchase online may never be delivered or may not be as advertised. Or you may be asked to pay an advance fee and receive nothing. The Internet also provides opportunities for scammers to steal your identity and your money.
+This is an example of '''malware''', which is software used to disrupt use of a device or gain access to sensitive information. Some malware is called '''spyware''' because it is installed on your device without you realizing it.
-This section describes some common Internet scams.
+Scammers try to install this software on your device so they can fool you into paying them money or gain access to information stored on your device such as bank account details and passwords.
-==“Free trial” scams==
+The installation of the software can be triggered in many ways - when you click on a link in an email, download a file from a website, or install free software.
-Online advertisements may offer you a trial for products to cure all sort of things, ranging from hair loss to weight loss or from acne to cancer. Be aware that “free trials” may result in repeated billing. Review the website carefully before you provide any credit or debit card information.
-You may be signing a membership, subscription or service contract that allows the company to charge fees to credit cards. Many websites that offer a “free trial” for products do not disclose the billing terms and conditions on their website. Check with the Better Business Bureau to find a company reliability report. See the [[Sources of Help for Consumers]] section for contact details.
+In fact, it is illegal to install software programs on someone’s device without the consent of the device owner or an authorized user (for example, a family member or employee).
-==Phishing and Smishing==
+==Phishing emails==
-These scams are forms of identity theft. They are tactics to get you to reveal your personal and financial information.
+You get an email message that appears to be from your bank. The sender’s name, the layout of the email, the logo - it’s all the same as your bank’s, at least on first look. The email says that your account has been compromised, and you need to visit a website to "verify" your account information. As you look more closely at the email, you see there are some typos, the logo is slightly off, and the address of the website is slightly different from your bank’s website.
-'''"Phishing"''' involves scammers creating email messages and web pages that mimic those of a bank, credit card company, auction site or escrow service such as PayPal. The imitations can sometimes be very good.
-The scammers send emails randomly to “fish” for passwords and financial data, hence the term “phishing” (pronounced “fishing”). These emails often ask you to “re-register” or “reactivate” an account. They provide a link to a website that appears to be the legitimate site of the company or financial institution.
+This email is fake. It has been sent by scammers pretending to be from your bank, trying to trick you into handing over personal and financial information. This is known as '''phishing'''. The email is being used as bait to "fish" for victims.
-The goal is to trick you into providing personal, financial, or password data. Once the scammers have your information such as credit card numbers, bank account information, social insurance numbers, and passwords, they use it to commit more fraud.
+Once the scammers have your information such as bank account details, credit card numbers, and passwords, they use it to take your money and commit more '''fraud'''.
-'''"Smishing"''' refers to text messages that are sent to users of mobile devices. The text asks you to register for a service that downloads a virus. Or the scammer may claim you will be charged unless you cancel a supposed order by going to a website, where you will be asked for your credit card numbers and other personal information.
+{{PLSTipsbox
+| text = If an email asks you to visit a website to "update" or "confirm" your account information, be extremely cautious. Institutions like a bank or government agency will never expect you to submit your personal information online or by email.
+}}
-==Anti-virus scam==
+==Money transfer scams==
-You receive a call from someone claiming to work for major computer company (e.g., Microsoft). The caller says you have a problem with your computer, for example, it is infecting others with a virus. All you have to do is go online and download anti-virus software, or let the caller “take over” your computer to fix it. The download in fact is spyware and malware that enables the scammer to gain access to your personal information and also to use your computer for other attacks.
+{{PLSStorybox
+| image = [[File:Headshot_-_Scams_to_Avoid_-_Harry_-_2017.jpg|link=]]
+| text      = "I got an email from a lawyer overseas. A person sharing my family name had died and left behind a large sum of money. The lawyer hadn’t been able to locate any of the dead person’s relatives. He suggested that, because I had the same family name, he could pay the inheritance to me. We could then split the money, rather than handing it over to the government. I just had to pay some taxes and legal fees, and to provide my bank details so they could deposit the money."<br>- Harry, Surrey
+}}
-==Smartphone app scam==
+An email from overseas claims that an important event - such as an inheritance or a change of government - has resulted in a person having a large sum of money which needs to be transferred out of the country. The sender claims that if you help with the transfer, you can keep a portion of the money.  If you reply to the email, the sender says you will receive your "reward" once you pay various "taxes and fees".
-Scammers disguise malicious spyware in a game or an application. If you download it, the malware can steal your financial details and other data.
-==Facebook link-sharing scam==
+This is a '''money transfer scam'''. It is sometimes called a '''Nigerian scam''' or '''419 fraud''', after the section of the Nigerian criminal code dealing with fraud.
-A scammer posing as a friend posts a link on your Facebook page wall or in Facebook status updates, making it look like legitimate link-sharing. If you follow the link it downloads viruses onto your machine.
-==Bogus Internet services==
+There are many variations of the scam, but all aim to steal your money.
-[[File:Internetscam.jpg|300px|thumb|right]]
-There are numerous scams that take your money for Internet services that you did not order, or that you were told were free.
-In one scam, you get a call from a company offering you a free website for a certain period of time. The caller says you can continue the service for a small monthly fee and cancel at any time. The caller obtains your contact information and a description of your business. Then you receive a bill, whether or not you ordered the service.
-==Overpayment scams==
+You will never be sent any of the money, and you will lose any amounts you pay in "taxes and fees".
-You advertise something for sale online. A buyer agrees to pay your asking price, but sends you a cheque or banker’s draft for a larger sum. Then they ask for the extra money to be sent back to them by cheque or wired to an account. Their cheque bounces after you have sent them your money.
-==Free government money==
+==Antivirus software scams==
-Social networking sites and online advertisement point you to blogs that appear to be written by ordinary people who are willing to share the secret of how they received funds from government to pay off their debts. This is in fact a mass marketing scheme. You have to pay to participate.
+{{PLSStorybox
+| image = [[File:Headshot_-_Scams_to_Avoid_-_Kathy_-_2017.jpg|link=]]
+| text      = "I received a call from someone saying they were from Windows. The caller said my computer had been reported as having a virus that was infecting others. They told me to go to a website so they could fix it. Once I did, they took over the controls of my computer. They then told me that I would have to pay $300 for the "repair". I pulled the power on my computer and brought it to a local company to fix it." <br>- Kathy, Nanaimo
+}}
-==West African scam==
+One of the most reported scams targeting Canadians is the '''antivirus software scam'''. You get an email or phone call from a company that says your computer has a virus. They say they can "repair" your computer. This can involve installing software or "taking over" your computer to fix it.
-This scam, which has been around for long time, has gone online. It is sometimes called the "4-1-9 scam", after the section of the Nigerian criminal code that addresses fraud schemes.
-Typically an email comes from overseas, usually from somewhere in Africa.The email claims that an important event (e.g., a change of government) has resulted in a person having a large sum of money which needs to be transferred overseas. The sender claims that if you help with the transfer, you can keep a portion of the money. If you reply to the email, you receive official-looking correspondence and are requested to provide your financial details, such as bank account information. Then something “goes wrong” and you are pressured to save the deal. The scammer demands advance fees for various taxes, legal fees, transaction fees or bribes. There are many variations of the scam, but all aim to steal your money.
-{{Consumer Law Wikibook Navbox}}
+The software they install turns out to be '''malware''' or '''spyware''' that enables the scammer to gain access to your personal information. Or the scammer insists on a payment for their "repair" before they turn the controls of your computer back over to you.
+{{PLSTipsbox
+| text = Never give control of your computer to a third party unless you can confirm they are a real representative of a company you trust. If you receive an unsolicited call from someone claiming to be from “Microsoft Support”, “Windows” or “Apple”, hang up. Technology companies do not make these kinds of calls.
+}}
+==Mobile phone scams==
+Many of the tricks scammers try with email and computers are also used on mobile phone users.
+For example, scammers hide malware in games or apps that you can download on a smartphone. When you download the game or app, the malicious software is installed on your phone. It can then be used by the scammers to steal your personal and financial information.
+Other scammers use the '''missed call scam'''. They call your phone and hang up so quickly that you can't answer the call in time. You may be tempted to call the number to find out who called you. If it is a scam, you will be paying premium rates for the call without knowing.
+==Preventing problems==
+[[File:Scams_to_Avoid_-_Contents2.png|thumb|275px|right| link=| <span style="font-size:50%;">Image via www.istockphoto.com</span>]]
+Here are ways to reduce the risk of being the victim of an online or computer scam.
+===Protect your devices===
+Password protect your devices. On your cellphone, lock the keypad when you're not using it. Have software installed on your devices to prevent '''spam''', '''viruses''', and '''spyware'''. Keep that software up-to-date.
+===Be cautious using email===
+When using email, never click on a link in an email, even to log in to well-known sites such as Facebook or Twitter. Go to the site directly and log in there. Don't open an attachment in an email sent by someone you don't know.
+===Be cautious online===
+Don’t click on links unless you trust the site you’re on. Don’t download files or applications unless you can verify the source. When you're using social media services such as Facebook or Twitter, be alert for scammers posing as a friend and trying to trick you into clicking on a link to a malicious site.
+===Erase information===
+Make sure your information is completely erased before you sell, recycle or discard your computer or cellphone. This involves more than deleting everything. To make sure that your private information is gone forever, you need to "wipe the hard drive" using special software. You can buy this software or have a professional do this for you.
+{{Scams to Avoid Navbox}}
+{{Creative Commons for PLS
+|title = Scams to Avoid
+|author =
+}}
+__NOGLOSSARY__