Identity Theft: how to safeguard against it.

 Identity theft is a growing business; every day thousands of people put themselves at risk without realizing it, or by simply not paying attention. There are many different ways you can be scammed on the web:

• Phishing - this is the most prevalent method at the moment, and generally involves an 'institution' emailing you for personal information.
• Pop-Ups - there are many 'pop-ups' that appear stating that you have a virus - you'll end up paying for anti-virus software while also giving way personal information.
• Lottery / Inheritance - another major problem, this usually involves an email stating you have won a lottery, you have inherited money, or someone needs help moving to your country and will give you a portion of their fortune if you 'house' the money for a while. These are all major scams that end up costing you a lot of money.
• Mortgage Help etc - there are many scams around today that play on peoples fear, or their circumstances. Many companies will offer help to reduce your mortgage or get you out of debt - many of these are scams to get your personal information.

• If an email is asking for personal information then it's usually a scam - don't use the link in the email, and don't copy and paste the link - visit the legitimate website, and if worried email the bank or institution, or call them.
• Don't call a phone number that is included in an email - it may seem like a real phone number, with a local area code, but as you can basically use any area code on Internet Phones, the phone could be located anywhere. Again, go to the legitimate bank or institution to find the real phone number.
• Always keep your anti-virus and anti-spyware software updated, and always run a complete 'sweep' of your computer every week. Use a firewall if possible. Don't become complacent - despite the fact that the Apple Mac is safe, as the number of Macs increases, so does the danger - complacency is the fraudster's friend.
• Never email passwords, Social Security Numbers, passwords or any other Personal Information - if you have to update information, always do it on the legitimate web site.
• Check your bank statements and credit card statements regularly - as you obviously have access to a computer and the internet, you can check your statements daily.
• Never open attachments, or click on 'pop-ups' unless you know they are from a legitimate source - one of the biggest scams on the internet is where a 'Virus Warning' pops up and you click on a link to buy virus software - not only have you paid for a service you probably didn't need, but you also have given personal information away.

Phishing is one of the biggest problems on the internet; Internet fraudsters instigate a series of emails to customers of large companies - banks, online shopping sites etc, trying to lure the customer to send personal and financial information including credit card details, social security numbers and passwords.

Typical scams include:

eBay:

Problem: typically you'll receive a message from 'eBay' stating that they are updating a security policy and need you to enter additional information - they'll provide a link so that you can update your information quickly and easily - essentially as soon as you click the link, you are sent to a mirror site that then copies your login and password - the perpetrator then uses your login to setup scam auctions, or steals your credit card and paypal information. (Other examples have an irate customer complaining about a 'supposed' sale, and a product that didn't turn up - when you click on the link to reply to the email, you again lose your login and password).

Solution: never click on a link in an email - if you think it is a legitimate email, log off the email and go directly to the ebay site and log on in the normal way - if it is legitimate, then you will have a copy of the email in your eBay account. If it is not legitimate - then use eBay's help system to report the fraud.

Banks

Problem:Quite often I recieve emails from a bank stating that they are updating their online systems and need me to log on to my account to update some information and to verifiy my financial information. A link will take you to a 'mirror' site that then steals my personal and financial information. This can have very serious consequences; generally you end up closing all your bank accounts and opening new ones - generally banks will cover any losses, but this process can take several months causing short term cash flow problems.

Solution: never click on a link in an email from the bank - log off the email and go to their normal website - if it is legitimate, you will be prompted to update information after you have logged on.

Virus Pop-Ups

Problem: As you are surfing the web, a pop-up appears with a message stating that you have a major virus - the pop-up looks like a legitimate virus program. On clicking on the pop-up you are taking to a website that usually offers you a free scan, identifies many viruses and then tries to cell you an anti-virus program. Firstly, they gain money by selling a product you do not need; secondly you have also provided them financial information that can be used, or sold to criminals.

Solution: never click on a pop-up that states you have a virus - it's most likely a scam. Use a pop-up blocker, or buy a legitimate anti-virus program.

You've Won Pop-Up

Problem: You receive a pop-up stating that you're the 1,000,000th visitor to the site and you've won a three day trip, all inclusive, to Hawaii. While these type of pop-ups aren't actually illegal, and often you will have actually won a trip - usually part of the 'bargain' includes you sitting in on an intensive 'hard-sell' for a time-share or something else.

Solution: be aware that the company you just won the prize from is trying to make money - if you can withstand a hard-sell then you should be OK, but you may also find that while the trip is free, you may have to eat at certain expensive restaurants etc.

Problem: You receive an email from an 'official' stating that you've won millions of dollars in the British Internet Lottery or some other lottery; you receive an email from a lawyers stating that your long lost rich uncle died leaving all his money to you; you receive an email from Tawanda, a rich orphon who wants to be adopted by an American family; you receive an email from a delegate of some African nation who happens to have millions of dollars, and needs your assistance in 'housing' the money in an American account for a percentage. These are all scams - essentially they'll often ask for bank account information, Social Security numbers and often even ask for a check for a 'transaction' fee - additionally, some may actually send a check to you - these are often 'fake' checks that will go into your bank account - but a few weeks later will be shown to be fake - if you've spent the money you are liable to pay it back to the bank.

Solution: You will never receive information about an inheritance via email - you will usually get an official letter. You will never receive information about lottery winnings via email. Even if the nigerian official is real, it is highly likely any transaction transferring money into the US will be illegal. Simply ignore these emails - go to the website Snopes.com to see if it is a scam

In these hard times there are many people in financial difficulties and there are many legitimate sources of help - however, there are also many unscrupulous sources trying to get your personal information.

Problem: Searching the web you can come across hundreds of companies offering to lower your credit card bills, reduce your mortgage etc. Many of these are legitimate, however many are simply there to either steal your information or charge you for a service that never actually happens.

Solution: my best advice is either to go to legitimate banks or resources (such as ditech etc.) - you can also check out the Better Business Bureau and research the company. While there are many legitimate companies out there, it's often hard to differentiate - do as much research as you can prior to contacting these companies.