85% of Latvian residents have encountered telephone scammers
Telephone scammers have become an annoying and, unfortunately, inevitable plague of the digital age. At least 85% of Latvian residents have experienced attempts to steal their online banking passwords or extort money, according to a survey conducted by market and public opinion research company Norstat Latvija. Moreover, the study debunks the myth that only poorly educated people with weak digital skills have lost money.
A survey commissioned by the insurance company BTA Baltic Insurance Company (hereinafter referred to as BTA) found that only 15% of respondents had not received phone calls from strangers seeking money. All others have been approached at least once by strangers via telephone or other communication channels, who have posed as investors, investigators, police officers, bank employees or representatives of similar professions and have used various methods to try to defraud them of money.
Most of their attempts were unsuccessful. 77% of respondents do not engage in long conversations with strangers and terminate communication. However, 8% admitted that they had believed the caller at least once and started to follow their instructions. Three-quarters of these people, or 6% of all respondents, began to have doubts about the caller's true intentions during the conversation and ended the call, while 2% completed what they had started and only then realized that they had been scammed.
"Over the years, the methods used by telephone scammers have become increasingly diverse and sophisticated. They pose as bank employees urging people to protect their savings by transferring or withdrawing money from an "unsecure account," law enforcement officers demanding payment for not initiating criminal proceedings, or doctors requiring payment for urgent surgery for a victim's relative. Fraudsters also send text messages warning people to pay fines for traffic violations, accompanied by fake links. Criminals skilfully exploit people's fears and anxiety to extort money, so no one can feel completely safe today. We can only protect ourselves against losses by insuring ourselves and our loved ones," says Ivo Danče, Director of the Insurance Claims Department at BTA.
The study reveals that no social group is immune to fraudsters. The proportion of people who have been defrauded is just as high among those with higher education as among those with secondary education. Age, place of residence and income level also do not show significant differences.
Cyber risk insurance, which is being offered for the first time in Latvia by the insurance company BTA, could become a solution in the fight against cybercriminals. The policy for private individuals protects against several types of cyber risks. BTA will compensate for losses if the insured person has entered their payment card details on a fake website and thus lost money, if an online store has not delivered the promised goods, if fraudsters obtain access passwords to online banking during a telephone conversation or if they steal money, for example, by sending an SMS with a fake hyperlink on behalf of a company. Compensation will also be available for emotional humiliation in the digital environment. By purchasing a policy, the customer automatically insures their family.
