Phishing is one of the ways in which identity theft is done.
Phishing is a very sneaky type of fraud conducted over the Internet. Its name
is a throw back to the early days of hacking and identity theft.
What is Phishing?
Phishing is a computer based fraud used by criminals for
dishonestly obtaining sensitive information such as passwords and credit card
details. They do this by pretending to be a trustworthy person or organization.
The fraudsters typically use email or instant messaging as
the method for contacting the unsuspecting individual although the phone has
been used as well.
They will send you an e-mail, which looks very similar to
the e-mail and website of the organization being impersonated, complete with
logos, graphics, similar font styles etc.
Examples:
- Your
account has been suspended
- Thank
you for your order
- Someone
has sent you money using online payment system
You need to click a link in the email in order to help
straighten everything out and provide some basic account information so they
can confirm your identity and then give you additional details so you can help
get everything cleared up.
After getting your information, these cyber-bandits can
empty your bank accounts, deplete your PayPal accounts, run up your credit card
balances, open new credit accounts, assume your identity and much worse.
Anti Phishing Law
In April 2004, the IRS warned consumers that scam artists
were sending emails purportedly from the IRS. Consumers received emails
claiming they were under investigation for tax fraud and subject to
prosecution.
The emails contained language telling recipients they could help the investigation by providing real information and directed them to a
website that was derivative of the IRS site.
Consumers were then asked to provide detailed personal
information to dispute the charge. Since most people fear the IRS, one can
assume that a large number of people took the phishing bait.
Tips Prevent and Report Phishing Scams
- Do not
open or respond to any e-mail that warns that an account is about to be
closed. Contact the company directly by phone and inquire of this e-mail.
- Make
sure that the web site address is starting with https://. Do not submit
financial information unless there is a symbol for a locked padlock on the
browser's status bar. The web site is not secure if both of these signs
are absent.
- Verify
the domestic telephone number listed on the Web site through directory
assistance or other reliable sources and call the number. Many phishing
attacks have originated outside the U.S.
and don't have a domestic number.
- Always
review your bank statement and credit card statements instantly upon
receipt.
- Report
suspicious activity or if you have been defrauded to the FTC and the FBI.
Never reveal your sensitive banking or payment processor
details online due to reading phishing emails. A better thing to do is to
forward such scammers to the company involved so that they can take legal action
to shut the website down and track the scammers.
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