Our View: When online, caveat emptor

The old saying, “A fool and his money are soon parted,” has always seemed harsh, though unquestionably accurate. As long as humans have lived in groups, some people have been trying to pull a fast one on others.

Certainly, the more careless and unsophisticated the person, the more susceptible he or she is to being conned, swindled and compromised, but even savvy, intelligent people can be cheated out of their money if the temptation is high and caution is low

Bernie Madoff’s multi-billion dollar Ponzi scheme not only included regular citizens, but the kind of people we would assume would know better. Among them, Carl Shapiro, founder of the women’s clothing brand Kay Windsor; filmmaker Steven Spielberg, Dreamworks Pictures co-founder Jeffrey Katzenberg; Mort Zuckerman, chair of U.S. News & World Report and publisher of the New York Daily News; Larry Silverstein, World Trade Center developer; and Leonard Feinstein, co-founder of Bed, Bath & Beyond.

The Nigerian Prince email scam is comical now, but from 2014-2018, it accounted for the theft of at least $6 million from people in 10 countries.

Today’s technology makes scams more prevalent, easier and more frightening. Before email and the internet, the victim had to participate in the scheme to a much greater degree than today, when losing your hard-earned money can be just a click away. The rise of artificial intelligence is likely to make the cons even more sophisticated.

A few weeks ago, data from the FBI’s annual internet Crime Complaint Center showed that online scammers stole a record $16.6 billion last year. That was a 33% increase from 2023, reflecting the increased prevalence of online scams, particularly ones including cryptocurrency and those targeting older Americans.

Perhaps the most dangerous thing about fraud committed over the internet is that, more often than not, it has no face at all. While pre-internet fraud was usually carried out partially or entirely in person, the internet has removed this requirement. This makes spotting scammers even harder when they work online.

The rise of e-commerce, online banking and social media has created vulnerabilities that cyber-fraudsters are eager to exploit. Even the tactics they use – social engineering, counterfeiting, and skimming for information – have all become easier with the help of the internet.

The techniques may be new, but the roots of these deceptions can be traced to one of two basic human frailty all of us have suffered from at one time or another – greed and a bleeding heart. The promise of a great deal and the ability to help someone in need are both compelling.

The get-rich-quick scheme and deals that are too good to be true can make chumps of us all, especially when our defenses are down. A lapse in judgment, carelessness or a suspension of normal skepticism, when combined with the immediacy of online transactions, can lead to predictably bad results. It would be silly to suggest that the solution is to simply avoid spending money online. That ship sailed long, long ago. Each year, Americans spend an estimated $730 billion online.

The best advice is the old advice: caveat emptor, i.e., buyer beware. Think twice before you make online purchases, especially from vendors you are not familiar with. Be wary of unsolicited offers, be aware of hacked social media accounts that use your friends and acquaintances to seduce you, and quit salivating over that deal that’s too good to be true.

The Dispatch Editorial Board is made up of publisher Peter Imes, columnist Slim Smith, managing editor Zack Plair and senior newsroom staff.