Following the COVID-19 outbreak, there has been a significant rise in online scams. As more individuals use internet for social media, banking, and online investments.
The Federal Trade Commission (FTC) reported that consumers lost over $3.3 billion to fraud in 2020 in the United States. This figure nearly tripled by 2023, reaching $10 billion. Investment scams accounted for the highest reported loss amount in 2023, with more than $4.6 billion.
As online scams become more sophisticated, it’s crucial to know how to protect yourself and take action if you fall victim to one. Here are 8 essential steps to follow if you get scammed by an online company:
- Document Everything: Keep records of all communications, transactions, receipts, and any other relevant information. Capture screenshots with your mobile device or computer; every piece of evidence is essential.
- Contact the Company: Try to resolve the issue directly by reaching out to the company’s customer service. If you are dealing with a fake trading platform or investment scam, it is crucial to stop any further payments. Scammers often request additional payments, such as taxes, to allow you to withdraw your money. These payments will only increase your losses to the scam.
- Report to Your Bank or Credit Card Company: If you made a payment, inform your bank or credit card company. They may be able to stop the transaction or recover your money. Ask about the chargeback process if it is possible.
- File a Complaint with Authorities: Report to your country’s consumer protection agency or similar authorities. Contact your local police and file a complaint.
- Notify the Platform: If the scam occurred on a platform like eBay, dating app, or a social media site, report the fraudulent activity to them.
- Seek Legal Advice: Consult with a lawyer to understand your legal options, especially if significant amounts of money are involved.
- Share Your Experience: Inform consumer protection groups and share your experience online to warn others.
- Monitor Your Accounts: Keep an eye on your bank and credit card statements for any unauthorized transactions.
Before investing in any online company, it is crucial to gather as much information as possible to ensure their legitimacy. Doing your due diligence can save you from falling prey to fraudulent schemes. Stay vigilant, protect your assets, and remember that informed decisions are your best defense against online scams.
