There is one rule to keep in mind that can prevent you from being a financial victim online: If it sounds too good to be true, it probably is.
There are dozens of scams out there trying to get your bank and credit information. Here are some of the more popular scams out there, and how to avoid becoming a victim.
Avoid ‘phishing’ scams
Phishing is when someone sends e-mails asking for bank or credit information. The e-mail or its links will use the institution’s logo and other graphics to give the impression that it is actually the organization sending the e-mail. The message asks a person to “verify” Social Security numbers, account numbers, or passwords.
Don’t do it. Your banking institutions know your information and don’t need to contact you randomly online to verify it. Your credit card and bank cards have your bank phone numbers on the back, hang up and call the number listed if you are concerned.
Suspicious responses to your Internet ad
This scheme starts with you placing a legitimate ad on the Internet. You get a response back from someone citing complications with currency exchange or shipping costs, who then sends you a check for more than the selling price. The buyer then asks you to wire back the extra money. Problem is that after you send back the money, you find out the original check was counterfeit.
If you’re selling something, funds should be moving only in one direction — to you.
E-mail scams
There are many e-mail messages that ask for your cooperation in helping a random person move large sums of money out of another country. You can bet these are scams.
The scammers all state that they have access to unclaimed funds. You are asked to provide funds to cover various fees and for your personal identifiers, such as Social Security numbers.
Often scammers start out by just asking for your phone number and then later ask for your bank numbers to wire-in the alleged funds. Don’t ever give out any of your information to strangers.
Prizes, trips, lottery winnings
This bogus communication can come to you via e-mail, the US Postal Service, or over the phone. There are numerous variations but, again, what they have in common is a request for you to advance funds to receive your prize.
The scammers claim you have won the Canadian or some other lottery, you have won a trip or some other windfall, and all you have to do is advance a “handling” fee to the sponsor or provide your bank account number. Don’t do it.
Computer viruses
Of all Internet frauds, this one is perhaps the most insidious. You receive an e-mail with a tender header, perhaps with an attachment titled “I love you,” or “call me,” or just about anything that piques your curiosity. When you open the e-mail, it attaches a small virus inside your computer that records keystrokes, log-in names, and passwords. And it does so without your knowing it. After you have visited financial websites, it e-mails that information back to the criminal sponsor.
Best advice: Don’t open strange e-mails, and get good antivirus computer protection.
Credit and job applications
If you see a credit offer or a job posting online, you can complete an application or send in a resume. However, don’t respond if it asks you for your Social Security number or bank account information. These can be provided later after you have established contact by phone, or mail, or in-person with the companies and have verified that they are legitimate.
Otherwise, you could be providing personal information that could result in the draining of your bank account or the stealing of your identity.