How to Protect Your Online Accounts from Fraud and Scams

Many people use the internet for years without thinking too much about the possibility of having their accounts stolen. Some amount of risk from having your account and credentials stolen always exists. 

Regardless of whether your digital footprint isn’t all over the internet, hackers can reach users in numerous ways. Furthermore, there’s a lot of malware that doesn’t require maintaining, and your devices can get infected by downloading files or interacting with a certain page.

We’ve decided to cover some of the most common types of fraud on the internet and provide you with some of the best methods to protect yourself. 

Common types of scams and fraud

One of the most common types of online fraud is phishing. Cybercriminals impersonate legitimate individuals or organizations in order to make you send them your personal information, such as login credentials.

Phishing can happen through email, SMS, and voice messaging. Regardless of the medium that’s used for conducting this scam, the red flags that you’re a victim of this attack are similar. They’ll ask you for your personal information, have spelling errors in their messages, ask you to visit a certain website, and usually, urgently require you to take action.

The next common fraud is account takeover. While phishing aims to steal your credentials, account takeover fraud is considered when your account is already accessed by the hacker. Once a hacker obtains your account, they’ll try to change your password and lock out the owner, make unauthorized purchases, or use the account to scam others.

Account takeover fraud can be recognized if you start receiving emails that you’re logged from another location, password change requests, and unauthorized transactions. 

Social engineering scams are similar to phishing and they rely on psychological manipulation rather than technical hacking to trick victims into giving up sensitive information. This scam exploits the individual’s emotions and trust.

A social engineering attack can include a hacker impersonating an employee of a certain company or a customer support. They might ask you for your credentials in order to help you solve a problem. There’s also romance social engineering attack. In this case, the hacker build online relationships through dating apps or social media, eventually convincing victims to send money under false pretenses.

It’s also worth mentioning that malware and keyloggers pose serious threats to online users. This, malicious software, can infect your computer if you’re downloading files from suspicious websites. 

Malware can come in the form of keyloggers, which record every keystroke you type, allowing them to capture passwords, credit card numbers, and private messages. We also have ransomware, which can encrypt your files and demand a payment for their release. 

Methods to protect your online accounts 

We’ve created a list of some of the most effective methods that will help you against the types of threats mentioned in the section before and against many more.  

Use only reputable platforms

It’s crucial that you’re able to recognize which platforms are legitimate and reputable. This way, you’re protecting yourself from giving your personal or financial information to a fraudulent website. 

However, even if a website might seem legitimate, it might not adhere to anti-money laundering or data regulations. You can take a look at this guide to understand more about AML regulations and the importance of PEP screening.

When choosing a site, you should explore recent reviews and check for some signs of legitimacy. For example, you need to check whether they’re using an SSL certificate, a protocol that encrypts data between you and them.

Websites that don’t use this protocol have higher chances of being illegitimate. Poor website design and faulty functions can also be a sign of a fraudulent website, but this isn’t a guarantee. Platforms that offer too good-to-be-true deals should also be researched extensively. 

Leverage strong passwords

Knowing how to create a strong password is essential for protecting your account. First, let’s explain what weak passwords are:

Weak passwords are vulnerable to multiple types of attacks, including brute force and social engineering. Brute force attacks function by trying out certain combinations infinitely until they access the account. This is why passwords that consist of words and names or are used commonly are risky.

On the other hand, if you’re using the names of your loved ones, pets, or your own, hackers might exploit your social media platforms to find the names of your close ones and then try to get access to your account. 

You should use random password generators to create strong passwords. Furthermore, it’s advised that you store them in password managers rather than in unencrypted documents or on paper. 

It’s also recommended that you change your passwords regularly. Sometimes, a platform that you’ve used in the past might get hacked, causing your credentials to be published on the internet. 

Implement multi-factor authentication

Along with strong passwords, using multi-factor authentication can minimize your chances of becoming a victim of brute force or social engineering attacks. If a platform allows you to do so, you must activate the MFA feature.

This way, whenever you’re logging in, you’ll have to confirm your identity through SMS, email, or a one-time generated token. So, even if someone obtains your credentials, they won’t be able to access your account unless they have your phone or email, making it significantly harder to take over your account.

MFA can also include the use of biometric authentication, which means that you’ll have to verify your identity with a fingerprint or a face scan. While MFA impacts the sign-in experience negatively, it’s an incredible way of defending against fraud and scams. 

Use anti-virus

Anti-virus software can provide you with real-time protection against malware. It notifies you when you’re visiting a suspicious website and scans the files that you download, preventing any trojans, worms, and other types of malware.

Once you download an anti-virus, you can also use it to scan your storage in order to find any malware that you might have downloaded in the past. While there are many free anti-virus options, it’s often considered that purchased versions are much better. 

Besides using anti-virus software, it’s also important that you keep your operating system and other apps that you have downloaded updated. Outdated software can have vulnerabilities that hackers might exploit. 

Don’t connect to unprotected networks

Public Wi-Fis can be of great help if you’re a remote worker. However, these can also be high-risk. Wi-Fis that don’t have the proper security settings can lead to hackers intercepting data, stealing login credentials, or injecting malware into your device.

One way to solve this problem is to use VPNs, which encrypt your internet connection, making it difficult for attackers to intercept data. If you have to use public Wi-Fi, make sure that you don’t access any banking, email, or other sensitive accounts.

Monitor account activity

Even with all the strongest security measures mentioned before, your account can still be stolen. Regardless of how this happens, you should ensure that you make the right action as soon as this happens. 

Many platforms allow you to set up login alerts, allowing you to get notified if someone logs into your account. Similarly, you should enable transaction alerts on the platform in question, or using your bank application.

Some banks allow you to turn-on multi-factor authentication whenever you try to make a purchase. This is a great way for preventing unauthorized transactions. Periodically, check your login history for important accounts, and see whether there are any unknown devices that tried accessing your account. 

Protecting your online accounts is essential 

While there isn’t a 100% way of guaranteeing that you’ll be protected regardless of what methods you implement, you’ll significantly minimize the potential risks. New fraud types are constantly emerging, and it’s important that you’re up to date with both traditional and innovative fraud prevention methods. 

The methods provided to you on this list will protect you against some of the most popular and common types of threats that you might be exposed to. Some methods, like learning how to create strong passwords, can be applied immediately, free of charge.

On the other hand, you’ll have to purchase an anti-virus or migrate to another payment tool. A combination of these easy and more complex strategies will maximize the protection of your online accounts. 

Veljko is an IT student who has successfully combined his passion for technology with his exceptional writing skills. As an emerging specialist in cybersecurity, he has completed several courses and has been published in notable blogs in the industry. In his free time, Veljko enjoys weightlifting, reading, and programming.

Linkedin: https://www.linkedin.com/in/veljko-petrović-699ab0201/

Website: www.writerveljko.com