Get Savvy about the Latest Scams

By theadmin

Twenty-first century scammers aren’t that much different from con artists from all eras.

Today’s ever-evolving technology, however, can make tricking consumers even easier. The 2013 Identity Fraud Report by Javelin Strategy & Research reported 12.6 million victims of identity fraud in the United States in the past year — that equates to one victim every three seconds.

Get wise to the myriad ways fraudsters can target you.

Phishing scams

According to phishing.org, more than half of Internet users get at least one phishing e-mail per day. These scams involve e-mails or phone calls from scammers impersonating a legitimate business. You may be asked to verify personal information, such as your Social Security number, or to click links that can install malware or viruses on your computer.

Examine e-mails carefully for typos, poor grammar, false addresses, and other telltale signs and never type in or share personal information. Visit phishing.org to learn more.

Data breaches

Have you ever been notified of a data breach from, say, your credit card company? Don’t ignore the letter. The ID fraud study by Javelin found that nearly one in four consumers who received such letters became a victim of identity fraud in 2012. Those who had Social Security numbers compromised in a data breach were five times more likely to be a fraud victim than an average consumer.

  • Monitor accounts closely for fraudulent charges to your credit cards.
  • Check your credit report at annualcreditreport.com to look for other suspicious activity.

Work-from-home scams

If an online “boss” offers you a job that involves wiring money to third-party vendors — all from the comfort of your own home — think twice. You may be used as a “money mule,” helping to launder funds. The U.S. Computer Emergency Readiness Team explains that your bosses may deposit funds (which turn out to be stolen) into your personal bank account, and then ask you to make withdrawals and wire payments to third-party vendors. You’re just sending stolen money right back to the crooks — and you could be held responsible since you shared online bank account information.

The US-CERT recommends:

  • Do Internet research on the subject line as it appears in the email offering you the job to see if it pops up as a scam.
  • Use PayPal, which has fraud protections in place, instead of wire services.
  • Investigate the business. Do online research, ask for other employees’ contact information, and check for complaints with the Better Business Bureau (BBB).

“Sweetheart” scams

The public gawked at Notre Dame Heisman candidate Manti Te’o for his longtime, online love affair with a woman who turned out to be a total fabrication. But he’s not the only one who has fallen prey to such schemes — and many are designed to illicit money rather than love.

Scammers develop the online relationship, perhaps starting on a legitimate dating site. Next, they try to talk the love-blind target into wiring money for a sudden “crisis.”

The BBB suggests skepticism if your love interest can never meet in person, talks of travel overseas, and sets up a crisis situation. Don’t send requested money. Instead, break up and date someone willing to meet on terra firma instead of in cyberspace.

Door-to-door scams

While online scams rack up headlines, remember to stay leery of solicitors who ring your doorbell. You may pay for a product you never receive — giving out personal information or credit card numbers to a crook. The number of complaints the BBB received about door-to-door sales more than doubled in a year — from 600 in 2010, to 1,300 in 2011.

  • Fight being polite. If you don’t recognize the person through the peephole, don’t open the door.
  • If caught off-guard, refuse the offer and don’t give personal information.
  • Take a business card, research the company, and call back if still interested.

More financial security tips

Javelin offers these ideas for securing your identity.

  1. Keep personal information private. From creating strong passwords for online accounts to shredding documents with your personal information, be proactive to keep fraudsters at bay.
  2. Monitor accounts weekly. Look for and report any suspicious activity.
  3. Set up automatic online payments. If you bank online, you can pay recurring bills with automatic drafts from your account — stopping scammers from getting their hands on checks that have your personal information.
  4. Use a secure Internet connection. That free Wi-Fi at Starbucks may be convenient for surfing favorite sites while sipping a latte, but don’t conduct personal business or transmit personal information while connected to public hotspots.
  5. Look for secure connections on merchant sites. When making credit card payments on a website, ensure they’re secure by looking to see that web addresses begin with “https” instead of “http”— the “s” denotes a security mode.

For more, check out this full fraud report and list of tips.