Rising Threat of Organized Scams: Safeguarding Mental Health
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Purpose of the Article
This article elucidates the concept of organized scams and offers practical strategies for addressing them collectively, drawing on credible resources. It serves to inform and raise awareness, rather than providing professional health or legal advice.
Introduction
Organized scamming has escalated into a widespread social concern linked to cybercrime and systematic hacking. The surge in such fraudulent activities has been particularly noticeable since 2020, likely influenced by the changes in lifestyle and work due to the pandemic.
As a tech professional and consumer, I frequently encounter stories of individuals affected by scams within my community and social media. My email and social media inboxes are inundated with spam and potential scams, particularly phishing attempts, which I consistently report.
Daily, I receive warnings from service providers and government agencies about the rising number of scams. Financial institutions, telecommunications companies, governmental bodies, tech firms, and insurance companies are sending increased alerts about these incidents.
The frequency of scam alerts has noticeably risen since the onset of the Covid pandemic, which has normalized such threats. My family members and friends, especially those over 70 or 80, have suffered significant financial losses due to organized scams.
While losing money is a major issue for victims, the emotional toll of being deceived can lead to serious mental health challenges, especially for older adults who may lack technological proficiency.
I recently authored two articles, “Six Tips to Filter Noise and Keep Sanity in These Enigmatic Times” and “Beware of Scams: I’m Concerned About YouTube Ads Even Though I Marvel at the Platform’s Value.” Readers expressed a strong desire for guidance on recognizing and combating scams, with many sharing their personal experiences of being scammed since 2020. One individual described her feelings of violation and shame after being scammed, fearing judgment from her loved ones.
I reassured her that she is not alone; I, too, have fallen victim to scams, and I plan to share my experiences in a future article.
As I discussed the lack of safety online amidst the rise of artificial intelligence and robotics, many readers expressed interest in learning more. With the advent of artificial superintelligence, concerns about technologies like deep fakes are growing.
This article aims to shed light on organized scams and provide an overview with actionable insights. My intention is to raise awareness and inform without instilling fear. As a pragmatic optimist, I believe that through awareness and collective action, we can significantly mitigate the impact of organized scams.
What is a Scam, and Why Do Organized Scams Matter?
In essence, a scam is a deceitful act that extracts value from others without offering anything in return. Dictionaries classify scams as dishonest schemes or frauds.
There is often confusion between scams and spam. While spam is irritating, it is generally less harmful than scams. I liken spam to a loud person causing annoyance in public, whereas scams are akin to a criminal posing as a friendly face.
Organized scams are particularly concerning because of their detrimental effects on our economy and the mental well-being of victims. The elderly, who may not be as tech-savvy, are particularly at risk.
The Internet, especially social media, serves as a breeding ground for scams, as I noted in my previous article, “Six Tips to Filter Noise and Keep Sanity in These Enigmatic Times.”
Sadly, many organizations online seem to focus more on combating spam than scams. While social media platforms can swiftly identify and ban spam accounts, they inadvertently allow organized scammers to reach vast audiences through paid advertisements.
Ironically, the rise in global scamming has also led to the emergence of fraudulent recovery scams. Some companies promising to recover lost funds may themselves be scams, using advertising methods similar to those of virus scanners from the 1990s.
Interactions on social media have facilitated identity theft, which has surged since 2020. According to the Identity Theft Research Center (ITRC), there was a staggering 68% increase in data compromises in the U.S. in 2021 compared to 2020.
Despite advancements in technology and public awareness, our data has become increasingly susceptible to breaches. IBM Security reported that the average cost of a data breach rose from $3.86 million in 2020 to $4.24 million in 2021.
Additionally, the FBI’s Internet Crime Report for 2021 indicated a 7% rise in cybercrimes from 2020. In 2021, 533 million Facebook records were leaked.
With the rise in data breaches and cybercrimes, scams have proliferated. I express my concern over the growing number of scams worldwide, particularly in Australia, where I reside, and I have noted that some other countries are even more adversely affected.
An Analysis of Stats from Scam Watch in Australia
In addition to reports of losses, I also reviewed statistics from the Australian Government Scam Watch portal, revealing alarming trends. For instance, at the pandemic's onset in Australia, citizens lost over $851 million to scams in 2020, a record high as scammers exploited the crisis.
Investment scams ranked highest, followed by dating/romance, remote access, and false billing scams.
Each year, reported scams have dramatically increased. In 2020, there were 40,891 scams reported, totaling $26 million in losses. By 2022, reports soared to 146,776 scams, costing over $381 million. It's crucial to note that many scams go unreported for various reasons.
Moreover, last month it was revealed that losses from imposter bond investment scams had nearly tripled in the first half of 2022, with victims losing over $20 million to these sophisticated schemes.
According to government reports, the primary scam techniques include phishing, false billing, online shopping, identity theft, pyramid schemes, remote access, hacking, investment fraud, dating scams, and rebates. Phishing is the most prevalent method, while financial scams account for the highest losses. The most affected demographic is those aged over 65, followed by those aged 55 to 64, with the least affected being 18-24 year-olds.
Reasons for the Recent Empowerment of Scammers
After reviewing technical literature, news about technology, and consulting cybersecurity experts, I identified several patterns that explain the rise of scams.
Scammers Exploit Social Media
Major social media platforms recognize cybercrime; however, scammers continually find ways to create multiple accounts to evade detection. They utilize paid advertisements that appear legitimate, complicating efforts to identify fraud.
AI Technology Aids Scammers
The rise of artificial intelligence has made it easier for scammers to operate. For instance, affordable automated bots can now spam countless individuals via social media. One individual can generate millions of spam accounts across various platforms, while intelligent bots can create SEO-optimized content that misleads users.
Desire for Quick Gains
The pandemic's economic impact has left many searching for quick financial opportunities. Scammers have taken advantage of this urgency, exploiting people's eagerness for fast earnings. Experts often remind us that if something seems too good to be true, it probably is, especially in the online realm.
Professionalization of Scamming
Many scams, particularly financial ones, are orchestrated by teams of professionals with backgrounds in finance, banking, and technology. Their expertise allows them to navigate interactions smoothly, reducing suspicion.
Impersonation of Trusted Organizations
Scammers often pose as representatives of reputable entities like government agencies or well-known corporations, instilling trust in their victims through mimicry.
Practical Measures to Mitigate Scam Risks
Public Awareness and Education
Raising public awareness through education is essential. Resources like the Australian Government's Scam Watch portal and the U.S. Federal Trade Commission's Scam Watch offer valuable information. It is crucial to remain cautious about unsolicited requests for personal information from banks or other organizations.
Stronger Governance with Severe Consequences
Governments must implement stricter regulations regarding unsolicited communications. While some European nations have made strides in this area, many other countries still lag behind. Social media companies must also actively combat the proliferation of spam accounts that facilitate scams.
International Cooperation
Scammers operate without borders, making international collaboration essential for prevention and prosecution. An international treaty involving countries like the U.S., U.K., Australia, Canada, and New Zealand could significantly reduce organized scams.
Leveraging Ethical Hacking and Cybersecurity Expertise
Ethical hacking can play a pivotal role in addressing cybersecurity challenges. Ethical hackers and forensic cybersecurity specialists can help prevent scams and aid recovery efforts.
Global Recovery and Support Services
While preventative measures are crucial, supporting victims in recovering their losses and addressing their mental health is equally important. Engaging ethical hackers and cybersecurity professionals, funded by governments, could create beneficial outcomes for both victims and service providers.
Takeaways
It is vital to educate ourselves and our communities about prevalent scams. Learning from others' experiences can prevent us from falling victim to similar traps. For those affected in Australia, the following resources may be helpful:
- Contact your financial institution
- Recover your stolen identity
- Report scams to the authorities
- Seek help from agencies
- Report scams to social media services
- Change your online passwords
- Connect with your local consumer protection agency
- Reach out to counseling or support services
- Inform trusted individuals about your situation
Having accessible resources like these is essential for citizens globally. If you know of additional resources available in your country, please share them in the comments.
Final Words
Scams not only threaten economic stability but also severely impact the mental health and overall well-being of countless innocent individuals, causing undue stress and anxiety.
I want to highlight an article by Simon Whaley titled “How To Deal With Scam Phone Calls.” As Simon aptly points out, "When you have no reason to suspect anything, it’s so easy to take what people tell us at face value. This is exactly what fraudsters want."
My background in cybersecurity has provided me with insights into the importance of ethical hacking, which I have documented in various contexts.
As this issue is personally significant to me, I hope to share my knowledge and perspectives to assist others. Please share this message with friends to help raise awareness and protect against scams.
Despite the challenges, let us focus on the positive aspects, remain optimistic, and take the necessary steps to mitigate risks, as outlined in my previous article, “Six Tips to Filter Noise and Keep Sanity in These Enigmatic Times.”
Thank you for taking the time to read my thoughts. I wish you all a healthy and fulfilling life.