Identity Theft Scams
By Rick Hazeltine
Staff Editorial Writer
Consumers can protect themselves from some identity theft scams by using a little common sense. Let's face it, you probably didn't win a multi-million dollar lottery you don't remember entering and do you really believe an unknown relative in a foreign country left you thousands of dollars in his will?
Although these anecdotes seem far-fetched to most, there are identity theft scams that ensnare consumers every day. Here's a look at the most common Internet identity theft scams:
- Jobs. Most work-at-home jobs are really identity theft scams. The "employer" requires you to submit personal information, including bank account information so your pay can be direct deposited into your account. This identity theft scam allows the "employer" to open credit card accounts, post online auctions and commit other fraud in the victim's name.
- Contest emails. This identity theft scam is usually attached to a highly visible and popular show or event to give it credibility. One of the most credible people in America is Oprah Winfrey and there is an identity theft scam being perpetrated using her popular show, according to the Internet Crime Complaint Center. The IC3 is a partnership between the Federal Bureau of Investigation and the National White Collar Crime Center that acts as a clearinghouse for Internet-related crime.
The basic format in this identity theft scam is usually the same, only the names or the events change. But here's how the current Winfrey scam goes: The recipient receives an email allegedly from the "The Oprah Winfrey Show," notifying them that they've been nominated for the "Oprah Millionaire Contest Show." According to IC3, recipients are asked to send their contact information, such as full name, address, telephone number and email address. Verified contestants are then required to purchase airfare and a ticket to attend an upcoming "The Oprah Winfrey Show" and are asked to provide personal information for a chance to win a million dollars.
The IC3 recommends consumers not open unsolicited emails and if, by accident, you do, especially don't click on embedded links as they may contain viruses or other malicious software. If you do receive such emails, you can file a complaint at www.IC3.gov.
- Debt elimination. With the current economic crisis and high unemployment rate, this identity theft scam is growing. With debt resolution companies advertising on radio, television and print, it doesn't seem out of place to contact one these businesses on the Internet. But many are identity theft scams waiting for a victim.
- Usually, the customer is required to send $1,500 to $2,000 to the company, along with all of your loan information and a special power of attorney authorizing the company representative to enter into transactions regarding the title of your home on your behalf. Besides the fact that this scam won't relieve you of debt, it will likely make you a victim of identity theft because the thieves have all of your personal information.
- Phishing. This identity theft scam comes in the form of an official-looking email from a legitimate business, such as PayPal, a credit card company or even the federal government. The email will use company logos and other information that is familiar to its Web site. The email tells the consumer the company needs to update their information or that there may have been a security breach and you need to verify the information. It will ask the consumer to verify passwords, credit card numbers and bank account information.
