(0:00 - 0:26) Hey, is your fridge running? If so, you better go catch it. Also, what's your social security number? Privacy Academy with Eric Meder. Welcome to Privacy Academy with Eric Meder. Today we're going to be talking about hacks and scams. Normally I try to make these videos funny, but I want to make something clear. Hacks and scams are no laughing matter. (0:26 - 0:37) In my work, I've had countless people come to me and tell me that they've lost their life savings due to a hack or a scam, and it's really tragic. Each time I hear a story of someone losing all of their money, I feel very sad. I mean, it's not a small thing. (0:37 - 0:49) A lot of hacks and scams literally ruin someone's entire life. And a lot of the time, hackers target and attack older generations who do not have the ability to go back out and rebuild their lives after the hack. This brings up a really important point. (0:50 - 0:58) Hackers and scammers are very evil people. You can never underestimate how far hackers and scammers are willing to go to take all of your money. These people are sadistic. (0:58 - 1:11) Not only will they imitate your loved one dying to take your money, but they will laugh at you after they have successfully robbed you of everything you own. It's disgusting. I've heard the same thing from every person that I've talked to who has experienced a life-changing hack or scam. (1:11 - 1:20) One, they wish they could go back and take more precautions. And two, they blame themselves and feel awful about it. If you've ever been hacked or scammed, don't feel stupid. (1:20 - 1:34) A couple of weeks ago, I did a video about Bybit and how their entire security team was tricked into basically handing over 1.4 billion dollars. Even the highest-ranked security people in the world have gotten hacked and scammed. It doesn't mean that you're stupid if you fall victim to one. (1:34 - 1:49) But if you have been hacked or scammed, that also means there's a higher chance that you'll be targeted again. One big way that hackers and scammers target people is through dark web databases. So for example, if you fall for a scam or a hack, you will be marked as more susceptible, or in other words, easy prey. (1:49 - 2:07) And when this happens, you will get targeted over and over and over because hackers and scammers think that the likelihood of getting your money will be much higher than some average random person. The problem is, no one ever expects that they'll get hacked or scammed. No one wakes up and checks their calendar and says, oh yeah, I forgot, I get scammed at 4pm today. (2:07 - 2:17) It happens out of the blue. And when it does, it can be life-changing. So, what do hacks and scams actually look like? And what can you do to stop them from happening to you? Well first, let's talk about the Hello Grandma scam. (2:18 - 2:30) This scam involves a caller who pretends to be a loved one in your family. Sometimes the caller does research even before the call on your history. They can easily find out who your son is, where he works, and create a believable story that you would fall for. (2:30 - 2:48) Typically, the Hello Grandma scam entails a story of something going wrong. For example, maybe your son was in a car crash and now he's going to the hospital, but he's worried because he might go to jail after the hospital. He wants you to send him money as soon as possible, and he doesn't want you to say anything to anyone because he's too embarrassed. (2:48 - 3:07) These hackers and scammers typically ask for money in strange ways too, like cash put in between magazine pages and mailed to a random address, or gift cards. The whole point of the call for them is to freak you out so much that you start to react emotionally, because emotional reactions are not logical reactions. And I know you might say, I know my son's voice, I wouldn't fall for that. (3:08 - 3:20) Well, scammers have many ways around that. They could use AI to mimic voices, and they could shout to distort their voice as well. And don't forget, if you heard your son crying on the phone, begging for help, you will instantly be put into a state of panic. (3:20 - 3:31) Your first thought won't be, is that really him? These scammers will use every trick in the book. They will scream, they will cry, beg, and call you awful names. Not only does the victim lose their money, but they get put through the ringer. (3:31 - 3:39) This scam succeeds very often. A ton of people lose their money because of the Hello Grandma scam. So if you ever find yourself in this situation, here are a few tips that can help. (3:39 - 3:58) First off, if your son is calling, try calling his real phone number on a different phone to see if he picks up. Alternatively, you can ask the person on the phone a question that only your son would know the answer to. Like, what do I always cook for you on your birthday? Or where did we eat on this vacation when we were at blah, blah, blah. (3:58 - 4:11) Or even better, you can meet up ahead of time as a family and create past phrases that you can use for each other. If your son asks for money, don't send it. If they tell you not to tell anyone, tell them that you're not comfortable to do that. (4:11 - 4:24) If they're asking for your help, then they need to accept that you need your safety as well. If it is a hacker or scammer, they will do everything that they can to prevent you from talking to someone else. Do not make decisions until you're certain that the person you're talking to is who they claim to be. (4:25 - 4:29) Also, don't be naive. Don't think, oh, this could never happen to me. I'm too smart, blah, blah, blah. (4:29 - 4:40) This is exactly what scammers hope you think. Next up is phishing. Phishing is a type of hack that happens when you click on a malicious PDF or link, typically through emails or shady websites. (4:41 - 4:53) Most of the times, it installs a virus onto your computer. A common virus is a keylogger, or in other words, a software that tracks every keystroke that you type. So if you type a password in while you have a keylogger, the hacker will know your password. (4:53 - 5:03) Phishing is so dangerous because it usually flies under people's radars. They don't think that they can fall for something so simple, but that's the reason that it works. It's so simple that your guard isn't up. (5:03 - 5:29) To protect yourself from phishing, always closely check the from address of any email address sent to you. Not the name of the sender, but the actual email address that it's being sent from. Also, if you're on an email or a website or whatever, if you hover over a link in the bottom left or right of your screen, it'll show a preview of where that actual link is going because you can see a link that says amazon.com, and it looks like it's going to be going there, but in reality, it could be going completely somewhere else. (5:30 - 5:34) Also, be careful of what you download. Don't just download anything. Don't go to dodgy websites. (5:34 - 6:02) Don't download documents sent to you over email, especially if it's from someone that you don't know. It's crazy because once you start doing research on cybersecurity, you start to realize how unbelievably easy it could be to hack someone. If you get targeted and someone really wants to get your information, it's hard to stop that, but if you use best practice, like having a password manager with strong and unique passwords, you use multiple unique email addresses, and you practice internet safety, you will make it much harder, and chances are you probably won't be targeted individually. (6:03 - 6:20) I mean, it could happen, but chances are more likely that you'll just be attacked in these mass attacks that happen to everyone, but remember, those mass attacks are usually what get most people into trouble, so don't underestimate those either. Another common scam is called the sweetheart scam, also known as the pig butchering scam. This scam is a brutal one. (6:21 - 6:31) Not only does it prey on your good nature, but it also leaves you feeling betrayed, ashamed, and deeply hurt. Once again, it goes to show how heartless these scammers really are. So here's the breakdown of how it works. (6:31 - 6:45) In this scenario, a scammer creates a fake online profile, usually on social media or dating websites. Then they'll reach out to you and use subtle emotional manipulation tactics over a long period of time to develop a relationship with you. It'll feel like you found the perfect match. (6:45 - 6:54) That's because before approaching you, the scammer will have done their research. Just think about it. With modern apps like Facebook and Twitter, it's easier than ever to figure out what someone likes. (6:54 - 6:59) Let's say you're into hockey. They can quickly figure that out. Maybe they can even see who your favorite hockey team is. (6:59 - 7:07) They will mention it casually to build a connection. These scams last for a long period of time. The relationships that are formed in these scams last for months, and sometimes even years. (7:08 - 7:21) The key is that the scammer invests their time and energy to earn your trust. Many people actually fall in love with their scammer, or they think that they found a true friend. That's why they call it a pig butchering scam, because they're fattening up the pig, which is the victim, before the slaughter. (7:21 - 7:33) There are countless variations of the scam. Here's a particularly brutal and shocking common example of this scam, so you can understand it better. Steve Belcher lost 1.6 million dollars to a pig butchering scam. (7:33 - 7:40) Steve is not dumb. In fact, Steve is very smart. He's a software engineer and vice president of a software development company. (7:40 - 7:52) The reason that I point this out is to show you that even if you're smart, well-educated, and in a leadership position, you can still fall victim to scams. This also demonstrates how skilled scammers are. The story of how he lost his money will amaze you. (7:52 - 8:01) Steve met a lady named Shikuka Shizuki on a dating app in the same city as him. The two of them clicked instantly. They messaged for months and never ended up meeting in person. (8:01 - 8:08) Steve developed real feelings for her. Eventually, the conversation went towards the topic of cryptocurrency. She asked Steve if he had done any crypto investing. (8:08 - 8:23) He said that he had about 10,000 dollars in crypto, but it was just sitting there and it had never really made any money for him. Shizuki mentioned that she found a great crypto app that made a lot of money for her. She made so much money, in fact, that she was able to travel and help her mother out with the money that she made from it. (8:23 - 8:33) Then she told him about the special crypto platform that she was using. She recommended that he should try it, but she wasn't pushy at all. She was happy and excited about it, and she wanted him to be successful too. (8:33 - 8:48) The website she recommended had both a mobile application and a well-designed website. Steve, who was a software engineer, examined the website and the app, and he said the app was quite well-designed and quite sophisticated. To start, Steve deposited small amounts of cryptocurrency into the app. (8:48 - 9:03) He started by depositing $5,000 into the platform, and within a week, that $5,000 turned into $6,500. He was pretty excited about this, but again, he wanted to check if it was legit. So he withdrew his money into his account, and he got the full $6,500 into his account. (9:04 - 9:17) In other words, the scammers allowed him to withdraw even more money than he put in, because they were playing the long game, they were earning his trust. And once he withdrew the money and actually received it into his bank account, that was the final step. He was hooked. (9:17 - 9:34) So Steve instantly put more money into the platform, $10,000, then $50,000, then $100,000, and his $100,000 quickly turned into $150,000. The return was amazing, and of course, this whole time, his new female friend was really happy. She was supporting his choices and telling him it was a great decision to make. (9:34 - 9:51) So then Steve looked at his 401k and realized that he had a lot of money just sitting around there not making any return. So he pulled out all of his money and put it into this platform, $1.6 million. And he watched that amount go up and up and up, and he was ecstatic, because he was finally able to give his children everything that he wanted to give them. (9:52 - 10:04) That's when he decided to be prudent and take some of his money out. So what do you think happened? Of course, when he tried to remove some of his money, he wasn't able to. They told him that in order to withdraw, he would have to deposit quite a bit more money in, in order to cover taxes. (10:04 - 10:15) That's when Steve started to get a doubt in the pit of his stomach. After that, he did more research and found out about this sort of scam. So he confronted his new online female friend, who he had developed feelings for, but her account was closed down. (10:16 - 10:24) That's when the weight of his mistake hit him. He realized that he had lost every single penny that he owned. So yeah, I think that story illustrates how awful hacks and scams are. (10:25 - 10:35) It's something that you never want to experience. Aside from the advice that I've given in this lesson, I recommend that you also sign up for ReliaShield. They're an identity theft insurance from Zander, and I've been using them for many years. (10:35 - 10:46) This video isn't sponsored, but I do have an affiliate code with them, with a discount if you want to sign up. Then you'll get a discount, and I'll also get a commission. We only partner with people that we actually use ourselves and trust very highly. (10:47 - 10:54) Otherwise, we wouldn't recommend them. Having something like ReliaShield gives you peace of mind. But you need to also take the steps that I mentioned in the lesson seriously. (10:55 - 11:05) You need to view your digital life like your physical one. If you don't exercise, your chance of getting sick or disease will be much higher. If you don't practice digital internet safety, you can get viruses or lose all of your money. (11:05 - 11:14) It's a really big risk, and I warn you to take it seriously, instead of waiting until it's too late. Finally, if you enjoyed this video, I'd like to let you know about a new meme coin that I'm launching. Just kidding. (11:14 - 11:22) There's one more point that I want to bring up. Legal scams. And I'm not talking about a product that you buy, and then you decide, okay, this is subpar. (11:22 - 11:36) This is not what I was expecting. Instead, I'm talking about things like meme coins that get rug pulled, and then everyone who invested loses all of their money. You can argue that people who invested money understand that they're taking a risk, but that doesn't justify someone coming in and basically robbing them. (11:36 - 11:49) I've also heard bad things about things like gold IRAs. They try to convince you that moving your retirement fund into a gold IRA is a good idea, and then they stomp on you with fees and other similar things. I would be very careful of investment things. (11:49 - 11:58) I personally love gold, and that's not financial advice. I just like hard assets. I think it's a great way to store your money, but I would never sign up for a gold IRA. (11:58 - 12:10) I also don't mind crypto, but I mean, I'm not going to go out and buy a hock to a coin, you know? Anyways, be careful with what you have, and understand that what you do on your computer can have very large real world consequences with it. Thank you.