Clear Debt Now

Written by admin on December 12th, 2009

Online Holiday Scams Growing in Size and Scope

No Comments

In 2008 the Federal Trade Commission reports there were an estimated 9 million U.S. consumers who were victims of identity theft. The total loss was $48 billion dollars with each victim experiencing an average $5,000 total cost. Identity theft is big business and getting bigger all the time.

Identity theft is when a thief uses personal information and steals cash from accounts, uses existing accounts to make purchases, or even creates a new account. It’s fraud, but it’s fraud that can create a nightmare situation for consumers. Unlike a house break-in where you may lose physical possessions, identity theft can ruin your credit, your reputation, and make it impossible to obtain new accounts. It takes many hours to undo the damage and sometimes it takes years.

One of the main points of identity theft is the internet. Online identity theft is growing exponentially in cyberspace. Cybercriminals are smart and technologically savvy, but even more importantly, they know how to manipulate people using knowledge of human behavior and emotions.

For example, one of the online scams that can lead to identity theft is sending a “new friend request” from a social networking site. What is really happening though is that it’s not a real social networking site but has just been made to look like one. When you accept your new friend request you are linked to malware that contains viruses or key logging software. With key logging software the thieves record your passwords and bank account information.

Another common cyber scam is sending consumers an official looking email that seems to be from a bank but is not really. The email will ask you to confirm personal information such as account numbers. Banks will never ask you to provide personal information through an email and all such requests should be reported to your bank.

During the holidays the cyber scams increase because the thieves know more people are shopping online. They prey on the good intentions of consumers such as asking for charitable donations but stealing the money instead. Holiday e-cards are sent and if you open them there may be malware unleashed on your computer. Fake invoices from illegitimate shipping companies are emailed to consumers requesting account verifications. Downloading holiday screensavers may actually download spyware.

One of the newest guards consumers can employ is to access websites that begin with “https:” when giving out personal information. These types of websites indicate encryption is being used which adds another level of protection.

People determined to steal identities online are relentless and clever. But there are some steps consumers can and should take. The first one is to trust your instincts. If you know you should not be getting a message from a vendor, shipping company, or bank then don’t open the emails or respond in any way. You should always have an anti-virus and anti-spyware software program running on your computer. Consumers should also create passwords that are creative and complex. Above all, never share your password with anyone.