Types of Scam
Scams can appear in many different forms. These are the most common scam types.
Phishing Scam
Phishing is one of the most prevalent of all Internet scams. At any one time, a large number of major financial institutions and online entities around the world will be the target of phishing scammers. Some high profile institutions such as Citibank and PayPal are targeted almost continually. Phishing scams attempt to trick people into providing sensitive personal information such as credit card or banking details.
In brief, a 'phishing' email is one that pretends to be from a company or bank like eBay, PayPal, WAMU, Suntrust etc, and which asks you, (for various reasons), to enter your account data, such as login details. These scams are often supported by fake spoof websites, and victims are tricked into thinking they are logging to a real website. Phishing is a form of identity theft, where fraudsters steal your identity and personal information to gain access to your accounts or commit other crimes using your persona.
Nigerian Scam
Nigerian, or "419", scams are one of the most common types of fraudulent email currently hitting inboxes. The scam messages can also arrive via fax or letter. The messages generally claim that your help is needed to access a large sum of money, usually many millions of dollars. In fact, this money does not exist. The messages are an opening gambit designed to draw potential victims deeper into the scam. Those who initiate a dialogue with the scammers by replying to the scam messages will eventually be asked for advance fees supposedly required to allow the deal to proceed. They may also become the victims of identity theft.
Lottery Scam
Lottery scams are one of the most common types of fraudulent email currently hitting inboxes. Be wary of unsolicited email that informs you that you have won a large sum of money in an international lottery. This is a common Internet scam. There is no lottery and no prize. Those who initiate a dialogue with the scammers by replying to the lottery scam emails will eventually be asked for advanced fees to cover expenses associated with delivery of the supposed "winnings". They may also become the victims of identity theft.
Chain Letter or Pyramid Schemes
A chain letter usually promises riches if perpetuated and alternatively, certain doom if the cycle were to be broken. Chain letters are scams and most of them are illegal. A similar scheme, many MLM's (multi level marketing) opportunities, also known as pyramid schemes, claim to offer consumers a way to get rich quick. Usually the model is you sell a product, refer people, and make profits off of your referral's sales. The lack of contact information is usually a giveaway to an offer’s illegitimacy. Never reply even to "unsubscribe", because they usually use this as a confirmation of your email and turn around and email you again.
Tax Scam
Tax scams are found all over the internet enticing readers with ways to evade taxes. Trust arrangements (trust scams) also lie in wait of unsuspecting victims whereby taxpayers are "sold" a set of fraudulent trusts and told that if they place their property and assets into these trusts, they can avoid tax on the income and estate taxes on their death. Typically, these trusts illegally claim tax deductions for the personal expenses of the taxpayer and his family, including food, housing costs, medical expenses, travel, entertainment, vacations and educational expenses. Tax evasion is a crime and getting hooked up with people who help you do it is a federal offence.
