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Don't Fall For The Latest Internet Identity Theft Scam
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By Tim Knox
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: I use PayPal to accept credit cards for my online collectiblesbusiness. I recently received an email that my PayPal accountwas going to expire in five days if I didn't click a link in theemail and give them my PayPal account information. Beingnaturally paranoid I decided not to give this information andI'm happy to say that my PayPal account did not expire. Was thisa scam? -- Brenda A.
A: Be thankful that your paranoia kicked in, Brenda, because youwere about to fall victim to the scam of the week, this oneaimed at the 35 million merchants and individuals who usePaypal.com as their online payment processor.
The email you received was not from PayPal, but from an Internetbad guy behind a forged email address using the PayPal.comdomain. You should understand that no reputable online companywill ever ask you to provide your account information. Thinkabout it. They already have this information. Why would they askyou to provide it.
Since I use PayPal for several of my online ventures, I, too,received the email in question. The email first seeks to instillfear in you by saying that your PayPal account will be closed ifyou do not provide personal information. You are then directedto open an attached executable file and enter your PayPalaccount information and other personal information that PayPaldoesn't even require, including your social security number,checking and savings account information, driver's licensenumber, and other personal information that can be used to cleanout your PayPal account and perhaps even steal your identity.
If you're not familiar with PayPal, it is a hugely successful,web-based company (purchased by eBay in 2002) that many onlineretailers and eBay sellers use to accept electronic payments foreverything from newsletter subscriptions to consulting servicesto just about any product for sale on eBay.
The allure of PayPal is that it does not require the seller tohave a bank merchant account through which to process creditcards. Anyone with a verifiable email address and bank accountcan use PayPal and the service can be implemented almostimmediately after registering. When someone places an order on awebsite that uses PayPal for online payments, that customer isdirected to PayPal.com to complete the payment process using acredit card or electronic check. The merchant can transfer themoney collected in his PayPal account to his checking accountany time he likes. Since many larger merchants make thistransfer just once a week or so, their PayPal accounts are ripefor the picking from those who have the cunning and lack ofethics required to gain access.
The shear number of PayPal customers is one reason it has becomea popular target of scam artists trying to steal personalinformation from individuals and businesses alike. Identifytheft is on the rise. Thanks to the Internet stealing someone'sidentity has never been easier. At any given moment, there areany number of Internet thieves using all manner of high techwizardry to steal personal and business information fromunsuspecting souls, and many times they can gain access to thisinformation simply by asking the person to provide it throughfraudulent means.
The PayPal scam is just the latest in a long line ofsophisticated attempts to steal personal information throughonline means, Amazon, eBay, Dell Computer, and many others havebeen the brunt of many such scams in recent years.
Identity theft is what's known as "a knowledge crime," whichmeans that the criminal doesn't have to break into your house torob you blind. If you have a bank account and a social securitynumber, you are susceptible to identity theft.
While most people are familiar with identity theft, mostbusiness men and women never think about it happening to them,at least on a professional level. Consider this: if a criminalcan learn your business checking account number or the number ofyour company credit card, they can steal far more from yourbusiness than if they had simply knocked down the door andcarted off your desk.
The Internet aside, most business and personal identity theft isstill the result of stolen wallets and dumpster diving. Youshould guard your business records closely and be very carefulwhat you throw away. Stop and think for a moment what a criminalmight find in the dumpster behind your office.
There's a good chance that dumpster has, at various times,contained scraps of paper with your social security number,driver's license number, credit card number, old ATM cards,telephone calling cards, and other pieces of vital businessinformation like bank statements, invoices, and purchase orders.A dumpster-diving thief could literally rob your business blindin a matter of hours.
Here are a few ways to protect yourself from business andpersonal identity theft.
กค Never give out your first name, last name, business name,email address, account passwords, credit card numbers, bankaccount information, PIN number, social security number, ordriver's license number.
กค Change your online account passwords every 30 days. Believe itor not, a hacker who steals your personal information can guessyour online account passwords in about two minutes. If yourCharles Schwab online account password is your birthday or thename of your first born or family pet, count on a hackercracking that code faster than you can say "Bill Gates."
กค Never provide personal information in response to an email ortelephone call. Just because someone calls and says they arefrom Dunn & Bradstreet and need to confirm your businessinformation does not mean they are really from Dunn & Bradstreet.
กค Never give your business credit card number over the phone toplace an order with someone who has called you unsolicited. Ifyou are interested in what they are selling get their number,check out their company, then call them back to place the order.
If you think that you have become the victim of identity theftor think someone is trying to steal your identity or personalinformation you should report them immediately to the FederalTrade Commission. You will find more information on theirwebsite at http://www.consumer.gov/idtheft/. For moreinformation on what to do if identity theft happens to you visithttp://www.privacyrights.org/fs/fs17a.htm.
So, if you ever receive an email from PayPal, Amazon, eBay, orany other ecommerce website asking you to update your accountinformation by email you can pretty much bet the farm that it isa scam.
Here's to your success.
Tim Knox, Founder For more information on starting your ownonline business visit http://www.dropshipwholesale.net, thewebsite for online entrepreneurs.
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