Beware Of Subscription Scams

In today’s digital age, subscription services have become routine, offering convenience and access to a wide range of products and services. Unfortunately, though, this convenience has also opened the door to scammers. Find out how to protect yourself from falling victim. 

Before you sign up for a subscription service online, be sure you’re not walking into a scam! Let’s take a look at these schemes, how they play out and how to protect yourself.

What are subscription scams?

Subscription scams come in a variety of forms, but they share the common goal of deceiving individuals into making recurring payments for services they didn’t intend to subscribe to or don’t ever receive. Some prevalent types include:

• Phishing emails and texts. Scammers impersonate reputable companies, sending messages to prompt users to renew subscriptions or update payment information, leading to fraudulent websites designed to steal personal and financial details.
• Fleeceware apps. These are mobile applications that, while not malicious in code, charge exorbitant subscription fees for basic functionalities. They often lure users with free trials that transition into costly subscriptions if not canceled promptly.
• Dark web sales of stolen accounts. Cybercriminals sell access to compromised subscription accounts (such as streaming services) on the dark web at discounted rates. These accounts are usually obtained through phishing or data breaches.

Real-life examples

The impact of subscription scams is significant and widespread.

In one instance, a Colorado woman lost close to $20,000 after responding to a phishing email that appeared to be from Best Buy’s Geek Squad. The email claimed her subscription was expiring and directed her to a fraudulent support number, leading to unauthorized bank withdrawals.

Another common and ongoing type of subscription scam targets Netflix users. The victims receive fake messages which claim there’s been a payment issue with their account and prompt them to enter login and credit card information on counterfeit websites. This results in account takeovers and/or financial theft.

There are also scams that occur through fleeceware apps, which appear on official app stores. These apps charge users high fees for simple services, like flashlight or QR code scanning apps. In one instance, a victim unknowingly agreed to pay $19 a month for a simple flashlight app. 

Fleeceware apps also have misleading trial periods and obscure cancellation processes, which trap the victim into paying these exorbitant subscription fees for months, or even years, on end.

Red flags

Here are some red flags that can alert you to a possible subscription scam:

• An offer that is too good to be true. If you’re offered free samples and a generous trial period for an otherwise expensive product or service, be wary. It’s likely to be a scam in which the trial ends abruptly and you’re hit with sudden high fees.
• Misleading or buried fine print. If you can’t find the fine print on a subscription, you may be looking at a scam.
• Unclear cancellation terms. If canceling a subscription involves a confusing and/or challenging process, it may be a scam.

Protect yourself

Don’t get caught in a subscription scam! Here’s how to stay safe:

1. Verify communications. Always confirm the legitimacy of subscription-related emails or texts by contacting the company directly through official channels.
2. Review the details of app subscriptions. Before downloading a new app, research its credibility, read user reviews and understand the subscription terms. Be wary of apps that request immediate payment or have unclear trial periods.
3. Monitor financial statements. It’s important to regularly review your checking account and credit card statements for unauthorized charges. If you notice any suspicious activity, notify your financial institution and/or credit card issuer immediately.
4. Use security tools. Employ reputable security software that can detect and block phishing attempts and malicious websites.
5. Educate yourself. Stay informed about common scam tactics and share this information with friends and family to help collectively reduce the risk of falling victim. 
   
   In our increasingly digital world, subscription scams are a growing threat. However, by staying alert and following these tips, you can protect yourself from falling victim.