Scams can take various forms. However, these usually have a common target, that of conning their victims out of their money or obtaining personal details, like bank account details, PIN numbers or internet banking log-in details.
Sometimes, while browsing the internet, pop-up windows may appear on our computer screens that elicit us to click and claim a prize. In reality, once we click, we are then asked to call a specific telephone number to claim the prize.
What we usually are not aware of is that these calls are very expensive and if we fall victim to such scams, we will end up spending money on a telephone call on the promised prize which does not exist.
To avoid falling victim to such scams, the best way is to never try and claim such prizes. The best answer is a no. You should also ask yourself: if I did not buy a ticket, how can I win? Free prizes are meant to be free, so why am I being asked for money or to make an expensive call?
Pyramid schemes are another common form of scam. Usually, these schemes entice the recruitment of people who all put money into the scheme. However, for everyone to benefit, there would have to be an endless supply of people; and there never is.
When these schemes eventually collapse, most participants in the scheme lose their money. Furthermore, such schemes are considered illicit. Therefore, promoting or participating in these kind of schemes is illegal under the Consumer Affairs Act.
Another popular scam is phishing. This occurs when scammers try to get hold of personal details, like bank account and credit card numbers, usernames and passwords.
When giving out such details, we risk having money illegally withdrawn from our bank account, money spent by people using our credit card details, or having our identity stolen and risking loans taken out in our name.
A favourite tool used by phishing scammers is the telephone. In the latest telephone scam, victims receive a phone call from a person claiming to represent major PC or software companies.
Some of the callers claim that the consumer’s home PC has a virus, system crash or is operating slowly. They then explain that an anti-virus software needs to be installed and go on to say that they can resolve the problem remotely, asking consumers to allow them to do so by following a number of steps.
Before hanging up, they will also ask for the consumer’s credit card details, claiming that the software they installed on our computer is not free and that an annual subscription needs to be paid.
Be very suspicious of unsolicited calls related to a security problem, even if the caller claims to represent a respected company.
You should never provide personal information, such as credit card or bank details to an unsolicited caller, and we must not type anything into a computer, install software or follow any other instructions from someone who calls out of the blue.
These scammers may be quite persuasive, and to avoid falling victim to such scams, the best thing to do is hang up. Keep in mind that if there really is a problem with your computer, you would realise and you would be the one calling a PC technician, not the other way round.
Phishing may also be carried out through e-mails that appear to come from our bank or credit card company, asking us to update our personal information. When asked for any confidential information about our finances, we should immediately realise it is a scam.
We should remember that our bank will never ask us for our personal details in this way. If we are in doubt, because the e-mail looks genuine, or the caller sounds professional, we should contact our bank by using the phone, rather than e-mail, and by calling the official number.
To avoid falling victim to scams, we should never forget that scammers are always finding new ways to trick us and obtain money. The best defence is to be aware of the scams going on and to always be on guard.
We should also keep in mind that no one will ever give us anything for free, and if something sounds too good to be true, then it usually is.
Common sense can also take us a long way and help us understand whether or not we are being scammed.
odette.vella@mccaa.org
Ms Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.