What You Should Know About Social Media Scams (According to the Big Banks)

Social media might connect people unlike any tool previously seen, but it’s not all sunshine and daisies. After all, this same revolution in communication has brought about one of the largest ways to scam unsuspecting users. Today, we want to take a look at how these social media scams work and what you can do to keep yourself safe.

Social Media Scams Explained

Social media scams are pretty self-explanatory; they’re scams carried out through a social media app.

Most attacks will utilize fake profiles on applications and platforms that people inherently trust, not unlike other phishing scams that exploit the reputation of institutions like banks or the federal government. Social media scams are a bit more sinister, though, as they will take on the persona of your friends, family members, romantic partners (or prospects), government entities, businesses, and so on. The attacker will use your profile for any piece of information they can find and exploit it against you.

Once the scam begins, it can take many forms:

• Offering a means of making fast money with little work or associated risk
• Offering a sale of a valuable item, sight unseen
• Offering a heavily discounted sale of a big-ticket item
• Offering a sale, despite living overseas or otherwise being unable to meet in person
• Offering something with the endorsement of a public figure
• Pleading for financial support—despite never having met you in person—to assist with a personal emergency
• Threats to share images of you unless some financial compensation is received 

Look out for these warning signs so you can protect your data using the following methods:

Confirm the Poster’s Identity

If any account tries to contact you, investigate. Find out how long it’s been active and how many followers/friends it has. You can then get a good idea of whether or not the profile is legitimate, especially if you start to receive unsolicited job offers, too-good-to-be-true opportunities, and so on.

Keep Your Private Information to Yourself

If someone requests financial support or sends you sensitive photos, take a step back and think—especially if it’s someone you have only ever met online. Even if you have met the individual, you should be aware that they could have potentially sinister intentions.

You Need to Act Now

Really, we wanted to have this conversation with you because of some guidance that Chase Bank provides about social media scams on their website, specifically the bit about how half of all scams reported to financial institutions have their roots in social media. The bank has received reports from users that people are using Zelle to request electronic transfers, and these attacks are coming from social media platforms and their connected marketplaces.

While it’s admirable of Chase to offer guidance on this situation, it’s also the bank mitigating losses. On the privacy and security page that details social media scams, it’s noted that certain types of payment don’t qualify for consumer purchase protection.

It should be noted, too, that this guidance is not limited to Chase specifically; any individual at any financial institution should take this advice to heart.

We’ll Help Educate Your Team, Too

Businesses in particular need to be careful about social media scams and cybersecurity threats, so if your team needs a refresher, Accucom is here for you. To learn more, call us at (02) 8825-5555.