Peer-to-peer scam is on the rise, here are the common scams to watch out for

During the pandemic, while e-commerce and peer-to-peer payments surged, so did the number of fraud victims.

A Federal Trade Commission (FTC) report reveals that since 2021, one in four fraud victims has been targeted on social media, leading to losses totaling $2.7 billion.

This year’s scams are expected to be more sophisticated, utilizing AI. Here is a list of the most common types of scams to watch out for, according to GoBankingRate.com.

Peer-to-Peer (P2P) Payment Scams
With the rising popularity of services like Venmo, Zelle, PayPal, Apple Pay, Google Pay, and Meta Pay, peer-to-peer payment scams have been on the rise. To prevent damage from scams, it’s best to use a two-factor authentication.

Phishing
This is the most common form of online fraud, where fraudsters try to steal sensitive information such as bank account numbers, credit card information, and social security numbers. Typically, fraudsters send emails or text messages impersonating government agencies or banks to steal personal information. Especially, social media users should also look out for AI-generated voices and photos that sound and look real.

Suspicious activity messages
A scammer claiming to be from a bank tells the victims that they have detected suspicious activity on their account and instructs them to wire money to supposedly cancel a transaction or unfreeze their account. If you receive a message like this, you should check with your bank before taking action.

Transfer mistake
In this scam, fraudsters request a refund after purportedly transferring money by mistake through a P2P service. Typically, the money sent is fake or from a scam account. The scammer keeps the money you sent and disputes the ‘mistake’ with the P2P provider to get the money back. If you comply with the scammer’s request and refund the money, the P2P platform may hold you liable and deduct the damage from your account.

Help charity scams
Scammers often lure victims with fake social media ads soliciting donations. The ads often use stolen photos or stories to appeal to emotions, emphasize urgency, and create a sense of reality.

Impersonating a fraud unit
“Scammers impersonating employees from a retailer’s fraud department might ask for your bank account credentials, credit card information, or social security number. The fraudsters create a peer-to-peer account with the stolen information and steal the user’s identity or access the account to commit other crimes.

Fake goods or services
Scammers often impersonate reputable businesses and demand P2P payments for nonexistent products or services.

BY NAKI PARK, HOONSIK WOO  [park.naki@koreadaily.com]