If you’re using the internet in 2025, you’re likely aware of the possibility of being scammed. But being aware of the existence of scammers and knowing how to recognize and avoid them aren’t necessarily the same thing. Online scams aren’t isolated or rare incidents: the number of cybercrimes reported annually has nearly doubled in the past five years, with more than 880,000 reported in 2023 alone.
Scammers target individuals, organizations, and governments alike, trying to gain access to sensitive data such as financial information or personal details. In this guide we’ll walk you through the most common scams, how to recognize cybercrime red flags, and what to do if you think you’ve been scammed.
Understanding Online Scams in 2025
New scamming techniques and technologies are evolving every day, designed to target the vulnerabilities of both individuals and businesses. They’re not just about stealing money: scams often focus on identity theft, holding data for ransom, or even causing reputational damage. It’s also a common misconception that only the unaware and technologically inept fall victim to scams: scammers are smart, and even the biggest names have fallen afoul of their schemes. In 2023 a Lithuanian citizen pled guilty to using a fraudulent business email scheme to steal over $100 million from Google and Facebook.
With so many online scams to be aware of, not to mention new traps being constantly set, individuals and organizations need to take proactive steps to protect themselves — the first of which is understanding scams in their many forms.
What are online scams?
An online scam is any form of fraudulent scheme carried out over the internet, often designed to steal money, data, or personal information. Scammers will exploit human psychology, playing on victims’ fear, greed, and trust to manipulate them. Scams often hinge on some form of deception, making them difficult to detect. If you want to be able to avoid online scams, you need to inject a healthy dose of skepticism into your online interactions.
Types of online scams to watch out for
Phishing and Spear Phishing
Phishing scams are one of the most widespread types of online fraud. Scammers will impersonate legitimate entities — such as banks and companies, or even colleagues, family, or friends — in order to steal personal data. This might include passwords, credit card numbers, or Social Security numbers. Phishing emails often look convincing, with official logos, language, and links that redirect to fake websites and resources.
Example: You receive an email that appears to be from your bank, asking you to verify your account by clicking a link. The link takes you to a fake site that mimics the real one, and when you enter your login details they are harvested by scammers.
Spear phishing is a more targeted version of phishing, where the attacker personalizes the message to make it more believable. Like the tip of a spear, these phishing attacks are pointed — designed to target a specific individual or organization, using personal information gathered by the attacker beforehand.
Example: An employee receives an email from someone claiming to be their CEO, instructing them to share confidential documents. Because the email is personalized with both their name and their CEO’s, the employee won’t question its legitimacy.
Ransomware
Ransomware is malicious software designed to lock or encrypt your data, in order to “hold it hostage” and demand a ransom to release it. Ransomware attacks are growing in popularity, and the ransom demands are getting higher. Attackers might require payments to be made in cryptocurrency, making them even harder to trace.
Example: You receive an email that seems innocuous at first glance. When you open it, malicious software installs itself on your device and encrypts all of your files. A message then appears, demanding payment in return for the encryption key.
Online Shopping Scams
With 53% of all websites in the US being ecommerce sites, it’s safe to say that online shopping is a thriving industry. It’s also a goldmine for cybercriminals. Scammers will set up fake websites that look legitimate, or post fraudulent listings on popular reselling platforms. Victims may end up paying for goods that never arrive or receiving counterfeit items.
Example: You find a luxury item online for a price that’s significantly lower than its usual market value. You pay for this item but it never arrives, and you are unable to get in contact with the seller.
Investment Fraud
Investment scams promise high returns with little-to-no risk. They will present you with fake investment opportunities, such as Ponzi schemes, and convince you to part with your money.
Example: You come across an online ad promoting a new cryptocurrency that guarantees a 200% return in the next 30 days. You invest your money, the scammer disappears, and the cryptocurrency turns out to be non-existent.
Social Media Scams
Scammers also use social media platforms to promote their fraudulent schemes. They might come in the form of fake giveaways, phishing messages, or fraudulent ads offering jobs, loans, or products.
Example: A popular social media account with lots of followers advertises a giveaway. You click the link provided and enter your personal details for a chance at being chosen; your information is then stolen and possibly even sold to other scammers.
Job Offer Scams
The last thing you need when job hunting is to be taken advantage of: this is a good example of how ruthless scammers can be. Scammers will lure job seekers in with offers that seem too good to be true, often requesting payment for background checks or training. Others may steal personal information through applications.
Example: You apply for a job online through a trusted platform. Shortly after, you’re contacted and informed that you’ve been hired, without an interview. The employer requests sensitive information to aid the onboarding process, then goes quiet.
How to Avoid Online Scams
Protecting yourself from online scams requires a combination of awareness and proactive measures. While scammers are constantly innovating, there are strategies you can adopt to reduce the risk of being scammed.
Recognizing red flags
Here are some of the warning signs that could indicate someone is attempting to scam you:
- Unsolicited messages – be cautious of emails or private messages from people or organizations you don’t know. Even if a message appears to come from a familiar source, be wary if it is unexpected or unusual. Scammers may pose as legitimate entities in order to build trust.
- Suspicious links and attachments – never click on links or download attachments from unknown sources. Scammers will often use this method to infect your device with malware or ransomware, or redirect you to a website designed to steal your information.
- Too-good-to-be-true offers – if something seems too good to be true, it probably is. Scammers will lure victims with the promise of easy money, free products, or guaranteed investment returns. Always question any offers that seem unrealistic, or require upfront payments.
What to do if you’ve been scammed
If you suspect you might have fallen victim to an online scam, act quickly to minimize the damage. We recommend taking the following steps:
- Stop all communication – if you think you may be communicating with a scammer, do not respond to any further messages. Don’t give them the opportunity to manipulate you further.
- Contact your bank – if you have already shared financial information or made a payment, contact your bank or credit card provider. They may be able to reverse the charges or protectively freeze your account.
- Report the scam – reporting scams helps the proper authorities to track and stop fraudsters, and will help to protect other internet-users.
- Change your passwords – if you’ve shared any kind of login details or personal information, change your passwords immediately. Enable two-factor authentication to add an extra layer of security.
- Run an antivirus or antispyware scan – use trusted antivirus or antispyware software to scan your device for any malware that may have been installed.
Don’t get duped
With the right knowledge and tools, it is possible to protect yourself from online scams. Staying informed, being cautious, and using strong security practices can significantly reduce the likelihood of falling victim to cybercrime. Using reliable tools and resources, such as iolo’s System Mechanic Ultimate Defense, can make protecting yourself and your devices even easier.
