Predicting the Biggest Scams of 2023

As we look forward to a new year, full of possibilities and challenges, one thing is certain – there will be scammers. It's no surprise that as the world becomes increasingly digitized and interconnected, so too do scams become more sophisticated than ever before. With the lure of quick cash, easy money, or even investments with “guaranteed” high returns, scammers have been working hard over the past few years to evolve their schemes for the 21st century.

While there's no way to know for certain what will be the biggest scams in 2023, we can make some predictions about where criminals may turn next. This has been done with ideas and suggestions we received from several experts from the industry and by analyzing what has worked for them in previous years.

So if you're an online shopper looking for bargain deals, a romantic searching for love, an investor searching for sound advice, or a digital currency user curious about what could happen next year — buckle up!

The Biggest Scams of 2022

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History suggests that the biggest scams of 2023 will follow some very familiar trends. 2022 saw some old scams going strong and a few new ones spreading like wildfire. 

1. Phishing scams: Phishing emails and fake websites are used to steal personal information. They come in many forms including fake websites, emails, text messages, and phone calls, as well as false offers of tax refunds or other incentives related to filing taxes.

2. Online Shopping Scams: Fake websites that offer “too good to be true” deals on products and services. Online shopping scams were said to be the riskiest scam type in the 2022 Online Scam Report by Better Business Bureau. 

3. Investment Scams: Ponzi schemes, fake investments, and other fraudulent activities that prey on those looking to make easy money by investing their hard-earned cash in something they don't understand or trust, such as forex or binary options.

4. Cryptocurrency Scams: With cryptocurrency becoming increasingly popular, so too are scams related to buying or selling digital coins.

5. Romance/Catfishing Scams: Scammers are increasingly posing as attractive men and women to lure their online lovers into sending them money. 2022 saw the rise of Pig Butchering Scams which combine Romance Scams and Investment Scams. 

It can be easy to fall for a scam if you're not aware of the common tactics but even with this knowledge, it's easier for you to fall, victim, than you realize. Scammers are known to be cunning, creative, and persistent. So stay vigilant, savvy, and alert as fraudsters are devious as ever. Watch out for the below scams in 2023.

The Top 5 Most Likely Scams in 2023

When it comes to scams, prevention is often the best course of action. Arming yourself with knowledge can help you protect yourself and your loved ones from becoming victims of these deceitful schemes. 

Here are some of the most likely scam trends to look out for in 2023:

Twitter Replaces Facebook as the New Scam Platform

Facebook scammers have been looking for new platforms on which to ply their wares — and Twitter looks to be the next in line. Facebook Marketplace Scams have dominated for much of 2022, but as Facebook's popularity wanes, scammers are likely to turn their attention to Twitter according to Wired and several other sources.

Ever since the infamous Twitter buyout by tech entrepreneur Elon Musk, scammers have been finding more ways to take advantage of the site’s many features and abundant users. One such scam involves hackers taking over verified Twitter accounts and using them to solicit money from unsuspecting followers.

With users now being able to simply pay to acquire a blue ‘verified’ tick, hackers are taking full advantage of this new feature. They post tweets pretending to be a celebrity, asking for donations or offering discounts on merchandise in exchange for “investment funds”.

Additionally, the high number of bots and fake accounts, as was evident in the highly publicized sale, makes it clear that Twitter is a prime playground for scam artists. Even though Twitter is taking bold steps to kick out suspicious and malicious accounts, it’s still a good idea to be aware of the potential dangers lurking on the platform.

2023, The Year of Deep Fakes Scams

You’ve probably seen ads on YouTube where a familiar face, like Elon Musk, is speaking words that he never said. Deep fakes are becoming a growing problem and can have devastating effects on people's lives, including the potential to destroy reputations.

Scammers use deep fakes to create videos or audio recordings of famous people, politicians, or even everyday social media users, promoting things like cryptocurrencies or investments. If you are not careful, you could be duped into believing that the person in the video is actually saying or promoting something that they do not actually endorse.

Stay vigilant and do your research before investing money or making major decisions based on a video you saw on YouTube. It’s better to be safe now than sorry later!

Binance Bust?

In 2022, we saw FTX, the second-largest crypto exchange, go bankrupt causing millions to be lost. But how did this happen? How did a claimed world leader in crypto lose $150 billion in less than a week? Was it just a classic case of mismanagement that lead to the arrest of CEO, Sam Bankman-Fried?

It is with such a background that we predict that in 2023, there will be a rise in scams involving cryptocurrency exchanges. Cybercriminals will take advantage of the lack of oversight and regulation to lure unsuspecting users into investing their money with them.

Already, the crypto sector is volatile and risky, and criminals will use this to their advantage. With other exchange platforms folding, and Binance under investigation, it could spell doom for the sector. 2023 could see the collapse of another crypto exchange, potentially leading to more losses for unsuspecting users.

To avoid falling prey to these scams, it is important to always conduct your due diligence and ensure that any platform you are using is legitimate before making any investment decision. Do not dip into crypto exchanges with your life savings. Always be aware of the risks involved, and only invest money that you are willing to lose.

AI Will Infiltrate NFTs and Art

Artificial intelligence (AI) is set to become more pervasive in many aspects of our lives and that includes Non-Fungible Tokens (NFTs). NFTs are digital assets with unique identifiers, meaning each one is unique. 

Scammers will take advantage of this fact by creating fake versions of popular NFTs or attempting to manipulate the prices of existing ones. Though NFTs are hard to fake because they use blockchain technology, scammers will still attempt to capitalize on the increasing popularity of NFTs by creating AI-generated images or other digital assets that appear real. 

Source: Unsplash.com

To protect yourself from being scammed, be sure to research the seller and make sure that you're buying a genuine asset. It's worth noting that NFTs are still a relatively new technology and it pays to do your homework before jumping in with both feet. 

Recovery Scams Will Continue To Rise

We have noticed an increase in recovery scams in recent years and we predict that this trend will continue into 2023. Recovery scams occur when a scammer pretends to be from a law enforcement agency, a reputable recovery organization, government regulatory body and contacts victims of fraud, offering them help in recovering the money they have lost.

The scammers then ask for advance payments or fees before they can begin the recovery process, but never actually follow through with their promise after they receive the money.

It's important to remember that no legitimate agency will ever ask for payment before helping you recover your funds. Plus, it's also hard to recover money lost to scammers due to slow law enforcement processes and cryptocurrency is practically impossible to recover. Be wary of anyone promising guaranteed and fast results. 

E-skimming will increase

Already, we are seeing a lot of cases involving e-skimming scams. This is where scammers either plant malicious data-stealing software on a website or use phishing techniques to steal financial information from unsuspecting users. In 2023, we predict that this kind of fraud will continue to surge due to the increasing sophistication of e-skimming software and the prevalence of online shopping platforms.

The FBI recently released a report on how scammers are using search engine advertisement services to redirect people to malicious sites. They create look-alike websites and then use purchase advertisements to make them more visible in online searches. The websites are so similar, that users cannot tell the difference between a legitimate website and the malicious one.

Once in, the scammers will steal your financial information as well as login credentials.

In 2023, we might see more domain redirecting as scammers impersonate legitimate companies to dupe users out of their money.

 “I expect Fake domain registrations and legitimate domains being compromised to surge in 2023. This will impact most companies, brand owners, and consumers worldwide. As a result, global policymakers and the cyber insurance/cyber risk/cyber security industries will begin to recognize domain security and brand protection as a way to address chronic issues of phishing, ransomware, business email compromise, and other related fraud at the source” notes Dangelo, Vincent, global director of Corporate Development and Strategic
Alliances with CSC.

Scammers are getting creative and will mimic every aspect of a website, making it difficult to detect whether or not you are on the right website. We also predict that more sophisticated social engineering techniques will be employed, such as using bots to send out convincing phishing emails and text messages.

Other Notable Mentions

• Vishing and smishing scams
• Online shopping scams
• Energy scams
• Big sporting events scams
• Holiday scams
• Fake job scams
• Fake charity scams 
• Cryptocurrency investment scams

How to Stay Away from Scams in 2023

While it's hard to know all the scams that are out there, it is possible to be vigilant and protect yourself from them. With over $55.3 billion lost in the past year, scams are on the rise and it is up to us to stay vigilant. Here are a few tips to keep you safe:

• Make sure you always check a website’s URL before entering any information – if it looks suspicious, don’t enter anything. Even if the domain name looks legitimate, make sure it matches the official URL of the website you’re visiting.
• Be wary of emails and text messages asking for personal information – this is a classic phishing scam. Legitimate companies should never ask you to provide such details via email or text message.
• If a deal looks too good to be true, it probably is. Be wary of offers that seem too good to pass up – chances are, you may end up losing your money if you take the bait.
• Investments that offer high ROI should be approached with caution – if it sounds too good to be true, it probably is. No legit company can guarantee results within such a short time frame. Daily returns are a huge red flag.
• Double-check their social media accounts – make sure their social media accounts have been active for at least a few months, and that they don’t feature any red flags. Check where the admins are located and if the contact information matches what's on the site.
• Can the reviews be trusted? Before investing in any product or service, be sure to do your research and read reviews from trusted sources. If the reviews are all praising with no criticism, be suspicious.
• Use ScamAdviser to check how old the domain is – New websites are usually more likely to be scams, as there is little to no information about them yet. Do your due diligence and use ScamAdviser to check how old the site is and whether or not it can be trusted.
• Check with company registries – If you are dealing with a company, make sure to check with the local company registries (in the country where they claim to be registered) and see if the company is legit or not. If there are suspicious resignations or owners from a different country, it may be a red flag.
• Confirm if the payment methods are legit – Before investing in any product or service, make sure you are using a secure payment method, such as PayPal or a credit card. Avoid using wire transfers, gift cards, or cash payments.

By knowing how to recognize a scam, you can help protect yourself against becoming a victim of fraud or scams in 2023.

Remember, this is just a prediction of what scams we might see in 2023, it may not be correct or complete. We only wish to educate you, our readers, on what to look out for in the future.  Stay safe, stay alert and stay educated on potential scams!

Image source: Unsplash.com