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Identity Theft

Learn to Recognize Email Scams

By Mindy

The crime of identity theft is on the rise. Identity theft victims total roughly nine million a year, many of whom fell prey to electronic scams. However, not all electronic methods of communication are high risk. As a consumer, you can rest assured that online banking and e-commerce continue to be safe to use. But in terms of being aware of other threats to your identity, you should learn to recognize what’s known as phishing scams. You should also know the key ways to protect your identity against these scams.

Understanding phishing

The term “phishing” refers to any act carried out electronically (on a computer) to get a hold of sensitive information. Sensitive information can include usernames and passwords, banking details, and credit card numbers.

Phishing scams take place over email or instant messenger. These electronic scams are disguised to look like they come from reputable financial institutions. Examples include eBay, PayPal, or even your own bank. The messages used in phishing scams ask users to supply private information of varying levels. Some scams request an email reply while others contain a link to a website where a person can type in the requested information. In some cases, a phone number is given with the belief that you’ll call and state your financial details.

An email that contains some kind of fear element is the most common method of phishing. For instance, say you get an email that appears to be from your bank. It has the subject line “Emergency: Banking Information Compromised.”  The email then goes on to say that a technical error recently occurred and your banking records were deleted. Your money is still there, but the bank needs you to supply your account information to reconnect your money with your name.

Sounds silly, but in an official-looking email it can be very believable.

How to protect against phishing scams

The best way to protect your financial information is to be aware. Learn to recognize the signs of email scams using the following tips.

• Never send confidential information in an email or instant message.
  Electronic scams usually ask for credit card numbers, social security numbers, your date of birth, your login for an online financial institution, or your password. As a general rule, never send this information out into cyberspace through an email.

It’s okay to type confidential information if you’re inside the website of a respectable company. Such websites are encrypted and protected, and you know who you’re dealing with. In an email, you can never be too sure who’s on the other end.

• Don’t trust links within an email if they take you to an unknown site
  You may already be used to getting email reminders from your credit card company telling you it’s time to pay your bill. Such an email usually contains a link to the website of that company. From there, you typically have to login with your password to view your information and pay your bill. This kind of link in an email is okay.

What’s not okay are links that take you to sites you’re not familiar with. If you don’t have an existing login set up with a website and you don’t recognize the company name, there’s no reason to supply any confidential information.

• Check your online accounts regularly
  Never let more than a month go by without taking a peek at your online accounts. Even if you haven’t used those accounts in a while and don’t expect a bill, review them to ensure all is in order.
  
• Make sure your internet browser is up to date
  As electronic scams grow more sophisticated, so do the safeguards against them. Be sure to take advantage of all updates for your internet browser and email application.
  
• Report phishing scams that come your way
  The best way to wipe out email scams is to report them to the groups created to combat the problem. If you receive an email that seems bogus and strikes you as a phishing scam, forward it to the following two addresses:

Anti-Phishing Working Group Industry Association at  reportphishing@antiphishing.org

Federal Trade Commission at spam@uce.gov

You should also forward the email to the company being impersonated (if that’s the case) so they are aware and can inform other members of their institution about the risk.

When you forward the email, be sure to include the entire email with the original header information.

Learn to recognize legitimate websites

One final way to recognize electronic scams and bogus websites is to learn how to read web addresses. You probably already know that the name of most companies is the first word to appear in a web address. For example: http://www.[name of company].com.

Any new web page within that home website of the company gets its name tacked on to the end of the web address. The names are usually connected by a backslash. Example: http://www.[name of company].com/[name of new page].

If you’re dealing with a bogus website trying to impersonate a decent company, the bogus website will put the name of the company in the web address. They do this because it’s easy to glance at the web address, see the company name, and assume that the website is legit.

Your clue that it’s bogus is when the name of the company does not come first or comes after the backslash. Example: http://www.[name of BOGUS company].com/[name of financial institution]. This is a sign that you are in the website of a bogus company that created a new page named after your company or financial institution.

Being aware is the best protection

As long as you’re aware that electronic scams exist, chances are good you won’t be victim to one. Simply be attentive to messages you receive over email and instant messenger. Make it a practice to avoid unusual links within an email. Most importantly, never send confidential information via email or instant messenger. Instead, rely on the credible websites of your financial institutions when you need to change or input information.

1/1/2008

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