Five internet scams and how to avoid them

Fraud costs the UK economy £30 billion every year according to figures from the National Fraud Authority - that's £621 for every adult in the UK and Wales. Internet scams are becoming more prevalent and harder to spot, so here are five internet scams you need to be on the lookout for and top tips on how to avoid falling for them.

How it works - With unemployment on the rise because of the recession, this particular internet scam is getting more common. It works like this: you're job hunting online and spot an advert or receive an email describing your ideal job - the role description, company logo and website might look legitimate, but when you get to the application form, it demands enough information to steal your identity and borrow money in your name.

How to avoid it - Double check that the company or recruitment organisation is legitimate - do a search online and look for independent information confirming the company is for real.

How it works - In the wake of tragedies like the Haitian earthquake many people want to make a charity donation to help, and unfortunately some internet scams try to take advantage of this. Criminals send e-mails and set up websites asking for donations, but the money you donate ends up in their pockets, and, because you've given them your credit or debit card details, they can steal even more from your account if they want.

How to avoid it - Look for a Charity Commission number and visit www.charity-commission.gov.uk where you can check it's genuine. If there's no Charity Commission number or you can't find the charity on the site, give your money to an organisation such as the Red Cross or the Disasters Emergency Committee instead.

How it works - you get an e-mail notifying you that you've been sent an e-card and that you have to click through to a website to see it. It sounds harmless enough, but it could download a virus onto your computer and expose all the personal data you hold on it, like bank and credit card details and other financial information, to criminals.

How to avoid it - Don't open an e-card unless you recognise the sender's full name - you might find that some scammers will use a common forename and no surname in the hope of tricking you into opening it.

How it works - With savings rates hovering not far above the base rate, watch out for emails and adverts promising amazing investment opportunities and high returns. Not only will the criminal who set up the scam have your money, but the personal information you hand over to set up the account will be enough to expose you to identity fraud.

How to avoid it - Remember the old adage, if it looks too good to be true, it probably is.

How it works - You get an e-mail that looks like it's from your bank or credit card provider, telling you that the security settings for your account need to be verified or reset, or that you need to confirm a direct debit or transfer. You click through to what looks like a genuine website and end up giving all your account information to the criminals who set up the scam.

How to avoid it - Call the organisation the e-mail claims to be from before you give out any information - use a telephone number you know is genuine (for example one you already have or have looked up independently) rather than using contact details given in the e-mail or on the website.

Check your bank and credit card statements and make sure you report the incident to the police and the organisation concerned.

It's also a good idea to check your credit report - you'll be able to see any new applications for credit made in your name, and, in some cases, your balances too, so you can easily spot suspicious changes. It's free to see your Experian credit report with a 30-day trial of CreditExpert - check your credit report now.