Common online and bank scam terminology you need to know to stay safe online

As online and bank scams become increasingly sophisticated, it's important to understand the terminology associated with them. Knowing the language used in these scams can help you identify potential threats and protect yourself from fraud. This article will break down essential online and bank scam terminology, helping you stay informed and safe in the digital age.

1. Phishing

Phishing is one of the most common forms of online scams. It involves cybercriminals sending fraudulent emails, text messages or websites that appear to be from legitimate sources, such as your bank or a well-known company. The goal is to trick you into clicking on links or downloading attachments that steal personal information, such as usernames, passwords and credit card numbers.

Example: A fake email from your bank asking you to verify your account by clicking a link that leads to a fraudulent login page.

2. Vishing (Voice phishing)

Vishing is similar to phishing, but it occurs over the phone. Scammers call victims and impersonate legitimate organizations, such as banks, government agencies or tech support companies. They use urgent or threatening language to convince you to provide sensitive information, such as bank account details or passwords.

Example: A scammer calls pretending to be from your bank, claiming there’s suspicious activity on your account and asking for your account number and PIN.

3. Smishing (SMS phishing)

Smishing is a variant of phishing that occurs through SMS (text) messages. Scammers send texts that appear to come from trusted sources, like your bank or an online store, often with links that lead to malicious websites. These websites can steal your personal information or infect your device with malware.

Example: A text message claiming that your package has been delayed and asking you to click a link to update your delivery details, which then leads to a fake website.

4. Ransomware

Ransomware is a type of malicious software (malware) that locks or encrypts your files, making them inaccessible until you pay a ransom. Scammers often demand payment in cryptocurrency or other untraceable forms in exchange for unlocking the files. Ransomware can be spread through phishing emails or infected websites.

Example: You receive an email with an attachment that, when opened, infects your device with ransomware, locking your files and demanding payment.

5. Identity theft

Identity theft is the act of stealing someone’s personal information, such as their name, Social Security number or credit card details, with the intent to commit fraud. This can be done through various online scams, including phishing, data breaches and malware attacks. The stolen information is often used to open accounts, make purchases or commit other crimes in the victim's name.

Example: A scammer steals your credit card information through a phishing attack and uses it to make unauthorized purchases.

6. Bank account takeover

A bank account takeover occurs when a hacker or scammer gains unauthorized access to your bank account, typically through phishing or malware. Once they have control, they can transfer funds, make purchases or commit other fraudulent activities using your account.

Example: A scammer uses stolen login credentials to access your bank account and withdraw funds.

7. Man-in-the-middle attack (MITM)

A Man-in-the-Middle (MITM) attack is a form of online fraud where a cybercriminal intercepts communication between two parties, such as between you and your bank, to steal sensitive information. These attacks can occur on unsecured Wi-Fi networks or through malicious software that intercepts data.

Example: When you access your bank account over public Wi-Fi, a hacker intercepts your login credentials before they reach the bank’s servers.

8. Keylogging

Keylogging refers to software or hardware designed to secretly record every keystroke you make on your computer or mobile device. This information is then sent back to the hacker, allowing them to steal sensitive details like passwords, credit card numbers and login credentials.

Example: A keylogger is secretly installed on your computer, and the scammer gains access to your online banking account information.

9. Fake websites

Fake websites are fraudulent websites designed to mimic legitimate online platforms, such as e-commerce stores or banking portals. The goal of these websites is to trick you into entering personal information, such as your credit card number or login credentials, which can then be used for fraudulent purposes.

Example: A website that looks like your bank’s login page but is actually designed to steal your account credentials.

10. Investment scams

Investment scams involve fraudulent schemes where scammers promise high returns on investments with little to no risk. These scams often involve fake cryptocurrencies, stocks or other financial opportunities. Scammers may use persuasive tactics, such as fake testimonials or urgency, to pressure you into investing.

Example: A scammer contacts you about a “can’t-miss” investment opportunity in cryptocurrency, only for you to lose your money when the scam is revealed.

11. Social engineering

Social engineering is a broad term that refers to manipulative tactics used by scammers to deceive individuals into divulging personal information or performing actions that benefit the scammer. It can include everything from impersonating a trusted figure to creating a sense of urgency that pressures the victim to act quickly.

Example: A scammer calls posing as your bank’s security team and convinces you to reveal your account login details for “verification.”

12. Loan scams

Loan scams are fraudulent offers where scammers promise low-interest loans or “easy approval” to victims who provide upfront fees or personal information. These scams are often targeted at individuals who are financially vulnerable and in need of immediate loans.

Example: A scammer offers a personal loan at a low interest rate but demands a “processing fee” before the loan is approved, which the victim never receives.

Understanding common online and bank scam terminology is essential for protecting yourself from fraud. By learning the language of scammers and staying informed about how these scams work, you can more effectively recognize suspicious activities and avoid falling victim to fraud. Always be cautious when sharing personal information, whether online or over the phone, and stay vigilant against common threats like phishing, ransomware and fake websites.

By staying educated about scam terminology, you can improve your cybersecurity practices and keep your personal and financial information safe.