"Phishing" Scams
Most major internet sites and financial institutions have been targeted including Citibank, PayPal, eBay, Bank of America, Wells Fargo, the Internal Revenue Service (IRS), and America Online (AOL). These scams usually show up in your email inbox with a message from the "System Administrator" telling you to perform some urgent maintenance on your account. If you ever get message like this be very, very, careful.
We'll use PayPal as an example of how these scams work. Remember, these same techniques can be used for any scam.
Nigerian Email Scam
This scam has been used for over ten years and is sent out to victims via letter, e-mail, and fax. It consists of a message stating the sender has a large sum of money, usually around 35 million, and needs help transferring it out of Nigeria, or some other place. As a reward for your help, the sender promises to pay you a few million dollars.
These emails are constantly being modified. A new one message supposedly comes from a rich Iraqi businessman trying to get 120 million dollars out of the country. Here's a sample:
"We are christian and my father happens to be one of the few rich christian in iraq. One thing we ask from you,on behalf of my mother and sisters, is to please indicate your interest in helping us secure a safe place for the bulk of our fathers funds in the bank over here before the tyrant iraqi government clamp on it."
Once you respond stating your willingness to help, the sender explains that there are transfer fees for the transaction, and that you'll need to pay them. Surprise!! You get deeper and deeper into the scam as the money supposedly gets closer and closer to your BA but can't seem to quite get there without an increasing amount of money from you.
The Federal Trade Commission has warned that some companies that claim to be identity theft prevention services are scam artists trying to get your driver's license number, mother's maiden name, Social Security number and credit. Don't ever give out any personal information over the phone or online unless you are familiar with the business that is asking for it. If you are unsure about a firm, check it out with the Better Business Bureau.
The scam: The scam artists who promote these services can't deliver. Only time, a deliberate effort, and a personal debt repayment plan will improve your credit. The companies that advertise credit repair services appeal to consumers with poor credit histories. Not only can't they provide you with a clean credit record, but they also may be encouraging you to violate federal law. If you follow their advice by lying on a loan or credit application, misrepresenting your Social Security number, or getting an Employer Identification Number from the Internal Revenue Service under false pretenses, you will be committing fraud.
We all want to be winners, but if someone calls you on the telephone and offers you the chance to receive a "major" credit card, a prize, or other valuable item, but asks you for personal data -- such as your Social Security number, credit card number or expiration date, or mother's maiden name -- ask them to send you a written application form.
These business opportunities make it sound easy to start a business that will bring lots of income without much work or cash outlay. The solicitations trumpet unbelievable earnings claims of $140 a day, $1,000 a day, or more, and claim that the business doesn't involve selling, meetings, or personal contact with others, or that someone else will do all the work. Many business opportunity solicitations claim to offer a way to make money in an Internet-related business. Short on details but long on promises, these messages usually offer a telephone number to call for more information. In many cases, you'll be told to leave your name and telephone number so that a salesperson can call you back with the sales pitch.