Learn How to Avoid Scams and Fraud
One of the easiest ways to get information
is to ask for it. Why get all messy digging
around in trash cans if you can just call or email someone and
have them hand over their credit card or social security number?
It happens every day, even though you might think you're too smart
to fall for it. If you see any of these scams, learn
how to report them.
You can also keep up-to-date with the latest scams with the
scam section of the Fight
Identity Theft Blog.
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"Phishing" Scams | |||||
| Most major internet sites and financial
institutions have been targeted including Citibank, PayPal,
eBay, Bank of America, Wells Fargo, the Internal Revenue Service
(IRS), and America Online (AOL). These scams usually show up
in your email inbox with a message from the "System Administrator"
telling you to perform some urgent maintenance on your account.
If you ever get message like this be very, very, careful. We'll use PayPal as an example of how these scams work. Remember, these same techniques can be used for any scam.
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Nigerian Email Scam |
This scam has been used for over ten
years and is sent out to victims via letter, e-mail, and fax.
It consists of a message stating the sender has a large sum
of money, usually around 35 million, and needs help transferring
it out of Nigeria, or some other place. As a reward for your
help, the sender promises to pay you a few million dollars.
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Auction Fraud (eBay and Yahoo Auctions) |
| Auction fraud was the second most reported
consumer fraud complaint to the FTC, totaling 51,000 auction
complaints in 2002. The fraud is simple - put up a fake ad on eBay, let someone "win" the bid and send in their money, but never send out the merchandise. - Learn More About Auction Fraud |
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Phony Identity Theft Protection or Credit Repair Scams |
| The Federal Trade Commission has
warned that some companies that claim to be identity theft prevention
services are scam artists trying to get your driver’s license
number, mother’s maiden name, Social Security number and
credit and bank account numbers. Don't ever give out any personal
information over the phone or online unless you are familiar
with the business that is asking for it. If you are unsure about
a firm, check it out with the Better Business Bureau. Credit repair scams offer to erase accurate negative information from your credit file so you can qualify for a credit card, auto loan, home mortgage, or a job. The scam: The scam artists who promote these services can't deliver. Only time, a deliberate effort, and a personal debt repayment plan will improve your credit. The companies that advertise credit repair services appeal to consumers with poor credit histories. Not only can't they provide you with a clean credit record, but they also may be encouraging you to violate federal law. If you follow their advice by lying on a loan or credit application, misrepresenting your Social Security number, or getting an Employer Identification Number from the Internal Revenue Service under false pretenses, you will be committing fraud. |
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"You've Won a Prize!" Lottery Scam |
| We all want to be winners, but if
someone calls you on the telephone and offers you the chance
to receive a "major" credit card, a prize, or other
valuable item, but asks you for personal data -- such as your
Social Security number, credit card number or expiration date,
or mother's maiden name -- ask them to send you a written application
form. If they won't do it, tell them you're not interested and hang up. If they will, review the application carefully when you receive it and make sure it's going to a company or financial institution that's well-known and reputable. The Better Business Bureau can give you information about businesses that have been the subject of complaints. Learn More About Lottery Scams |
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"Make Millions Stuffing Envelopes!" Scam |
| These business opportunities make it sound
easy to start a business that will bring lots of income without
much work or cash outlay. The solicitations trumpet unbelievable
earnings claims of $140 a day, $1,000 a day, or more, and claim
that the business doesn't involve selling, meetings, or personal
contact with others, or that someone else will do all the work.
Many business opportunity solicitations claim to offer a way
to make money in an Internet-related business. Short on details
but long on promises, these messages usually offer a telephone
number to call for more information. In many cases, you'll be
told to leave your name and telephone number so that a salesperson
can call you back with the sales pitch. The scam: Many of these are illegal pyramid schemes masquerading as legitimate opportunities to earn money. |
What Else Can You Do?
Adopt a "need
to know" approach to your personal data. Your credit card company
may need to know your mother's maiden name, so that it can verify
your identity when you call to inquire about your account. A person
who calls you and says he's from your bank, however, doesn't need
to know that information if it's already on file with your bank;
the only purpose of such a call is to acquire that information for
that person's personal benefit. Also, the more information that
you have printed on your personal bank checks -- such as your Social
Security number or home telephone number -- the more personal data
you are routinely handing out to people who may not need that information.
Another good idea is to sign up for our Fight Identity Theft newsletter. We'll be sending out information about the latest scams, news, and legislation.
