Scams vs. phishing: Understanding the key differences

What is a scam?

A scam is a deceptive operation designed to illegally obtain personal data or money. Most scams happen online, though they can also extend to offline methods, particularly when targeting large sums.

Some examples of common scams include:

• Pyramid schemes
• Fake investment opportunities
• Lottery scams
• Online dating scams
• Cryptocurrency scams

Scams can occur for various reasons, such as harvesting sensitive data, stealing credit card numbers, or identity theft.

The reason why scams are so effective is because they rely on manipulating the victim to give up their data or money, either through coercion or force. Scammers commonly use tactics such as:

• Creating a sense of urgency through false claims.
• Creating a false scarcity to sell fake or substandard products.
• Using social engineering to persuade victims to provide personal information.
• Scaring bank users with fake messages about their money.
• Blackmailing victims for access to their accounts.

What is phishing?

Phishing is a targeted social engineering attack, where criminals impersonate trusted entities to trick victims into sharing sensitive data. Phishing attempts can be categorized as scams that use similar approaches. However, standard phishing methods mostly revolve around impersonation or any other trick that makes the scammer appear legitimate.

Some common types of phishing attacks include:

• Spoofing calls pretending to be a trusted caller.
• Using email to bait victims to install malware or malicious software.
• Sending mass amounts of spam to trick individuals into entering a fake website.
• Inserting a fake URL in their messages or within website content.

Phishing attacks typically target information that criminals can further use in other types of scams or immediately exchange for financial gain. Information that phishers seek to obtain includes:

• Passwords
• Login credentials
• Credit card numbers
• Social Security numbers
• Bank details or other financial data

The main differences between scams and phishing

A key distinction is that while phishing is a type of scam, not all scams are phishing. A phishing scam is typically limited to a specific approach. Meanwhile, scammers can use a variety of approaches, which may or may not involve phishing.

Here’s how to tell scams and phishing apart:

How to identify scams and phishing attempts

While phishing attempts and scams generally have many similarities, you can identify what kind of attack you may be experiencing by looking at its features. A phishing scam employs specific tactics that distinguish it from other online scams, and learning the difference can help you detect phishing better.

How to spot a scam

Some approaches that can give away a scam include:

• Offers that are too good to be true.Free vacations, sudden inheritances, or guaranteed get-rich-quick schemes are likely scams.
• Pressure tactics. Scammers might pressure you into acting quickly before you can think your actions through.
• Poor grammar and spelling. Legitimate companies will communicate professionally and rarely send messages with spelling errors.
• Requests for personal information upfront. Scammers usually request data like your Social Security number or bank account details, which legitimate organizations never do.

How to spot a phishing attempt

Phishing attacks are generally more sophisticated compared to other types of scams. However, they also have specific tells that can give them away as fraudulent schemes:

• Suspicious sender addresses. Phishing messages usually contain misspellings or inconsistencies with the supposed sender’s domain name.
• Generic greetings. Because they’re sent en masse, phishing emails often address you generically (“Dear customer”) instead of by your name.
• Urgent requests for action. Phishing emails might claim your account is compromised or needs immediate verification without offering any proof or reason to do so.
• Suspicious links. Phishing messages usually contain links that redirect you to a website that harvests your login details or personal information or automatically installs malware on your device.
• Typos and grammatical errors. Phishing messages may contain typos or grammatical errors.

What to do if you suspect a scam or a phishing attempt

If you think scammers are targeting you or you want to better protect yourself from scams and phishing attacks, follow these security steps to lower your risk:

• Do not click on any links or attachments.
• Do not respond to any suspicious messages.
• Be cautious about sharing personal information online.
• Report fake messages to relevant platforms or organizations. Reporting phishing attempts and scams helps you lower the risk of future attacks and can limit the damage that scammers and phishers can inflict.

How to protect yourself from scams and phishing

Scammers will exploit flaws in an individual’s online security setup or appeal to their emotions when trying to phish or scam them. The best way to protect yourself against scams and phishing attempts is to:

• Use strong passwords and update them regularly.
• Enable two-factor authentication (2FA) and other security measures for your logins.
• Keep your software up to date.
• Use security solutions like NordVPN’s anti-phishing software.

If you’ve already clicked on a phishing link, you must act fast. Don’t provide any information, change your passwords, and report the phishing link. Above all else, simply being careful about your interactions online can be a reliable way to protect yourself from scams and phishing attempts. Always check the identity of who you’re talking to and don’t provide personal information to unverified individuals.