ID Theft, Phishing & Other Scams

Do you really know who you are doing business with online? The Internet is a multi-billion dollar engine for commerce and fundraising. And as with any successful enterprise, it attracts its share of scam artists hoping to cash in. Online thieves rake in billions of dollars a year using a variety of schemes to steal the personal information, or even the entire identities, of unsuspecting people. Take the time to learn the risks now to prevent the months, or even years, of bad credit and legal hassles that can result from online scams.

What you should know about online scams

Online scammers typically focus their efforts on gathering the sort of information that may appear on a loan application or other financial transactions: names, Social Security numbers, birth dates, credit card and bank account numbers-as well as passwords and personal identification numbers (PINs). Thieves use this information to create fraudulent accounts for their own use-and then go on spending sprees that end up on your credit report.

One of the most popular ways that thieves steal your personal information is through a scam called phishing. A phishing scam begins with an e-mail to potential victims that appears to come from a legitimate business, such as a bank or a software company. The message then asks you to submit credit card information, Social Security numbers, bank account information, or other personal data under a false pretense. This pretense is often a moneymaking opportunity, but it might also be a seemingly routine request to verify personal information. The scammer's e-mail may even include a link to a legitimate looking Web site to capture this information.

Keep in mind that online scammers prey on young and old alike. According to the Federal Trade Commission, about one-third of all reported victims of identity theft are teenagers. They make attractive targets because they have good credit ratings, seldom carry much debt, and may be less savvy about keeping their personal information secure. Remind everyone in your family to take precautions against online scams.

Signs of a scam

• You don't know the person who has sent you the message.
• You are promised large sums of money for little or no effort on your part.
• The request contains a sense of urgency.
• The sender repeatedly requests confidentiality.
• You are asked to provide money up front for a processing fee, or to pay the cost of expediting the process.
• You are asked to provide your bank account number or other personal financial information, even if the sender offers to deposit money into it.
• The sender offers to send you copies of government certificates, banking information, or other evidence that their activity is legitimate-this evidence is easily faked.