Common Scams for Identity Theft
Identity Theft. You know it’s out there. You know better than to hand over your personal information. Yet, the problem persists. How do they do it? How do crooks and con artists actually steal your personal information without your knowledge? These are some of the most common ways your personal and/or financial information can be stolen:
Internet Scams
Phishing. Pronounced like ‘fishing,’ that’s exactly what it is! Scammers will bait you with an e-mail that looks like it originated from a legitimate organization, such as your bank, mortgage company, credit card company, or a major retailer. Emails might contain the actual logo of the organization with a link to click through to an illegitimate site. The email then hooks the recipient by offering big riches or prizes if you confirm your account information. Others might threaten to close your account if you don’t confirm your account information. Still, other emails might attempt to confirm payment for an order you may or may not have placed. Specific phishing scams include:
· IRS refund. This phishing scheme involves an email that looks as if it originates from the IRS. Recipients are informed that the IRS has a refund for them. Then, recipients are instructed to click on the link and fill out their bank account information to receive a direct deposit.
· Foreign lottery winner. This email is fairly common and informs the recipient that they have won a foreign lottery, even if a ticket was never purchased. Bank account information is requested so the money can be deposited directly. This scam may also work through the mail, in which a check is included. By providing your bank account information or depositing the check, you are providing the criminals with your personal financial information.
Telephone Scams
Despite the good intentions of the government’s Do Not Call list, cold-calling and fraudulent phone calls still exists. In fact, there are plenty of identity theft scams that originate from telephone calls. Here are a few examples:
· Fake caller ID. It’s hard to believe your caller ID could deceive you. However, with today's technology it is possible for a con artist to contact you with a fake name or address on your caller ID. It may look as though your bank or credit card company is trying to contact you, but beware that the caller ID might not be telling the truth.
· Confirmation calls. Some identity theft scams involve a call asking to confirm your full account numbers, your PIN number, or the security code on the back of your credit card.
· Telephone tips. Although less likely, there is still a chance that you might receive a call on your home phone involving a hot investment tip or something similar. However, if you don’t know the caller directly, it’s probably a scam.
· Jury duty joke. This scam involves a call stating that you missed jury duty and your personal information needs to be confirmed. However, if you think it is the court calling, the joke might be on you.
Other Miscellaneous Scams
Identity theft is not limited to just internet and telephone scams. Theft can result from simple acts such as sorting through trash or stealing personal information from cars or glove compartments. Some other scams might include:
· Medical identity theft. Many insurance companies use your social security number to file insurance claims. In some cases, you can request that your insurance company provide you with a card that does not use your social security number. Otherwise, medical information should be kept securely at medical or dental office.
· Child identity theft. Because this sort of theft can go unnoticed for years, it is one of the fastest growing segments of identity theft. Usually, a parent, relative, or close friend of the child will steal the child’s personal information to set up new bank accounts or credit accounts. The theft often goes unnoticed until the child is old enough to establish a checking account or obtain a driver’s license.
Protect Yourself. Now that you know how identity theft can occur, here are some things to remember to protect yourself from becoming a victim:
· The IRS will only contact you through the US Postal Service, so emails that look as though they originate from the IRS are likely to be a scam.
· Never click through on an e-mail link unless you know the sender.
· Your bank will never call you to ask your full account number.
· You can always ask phone callers to mail information or requests.
· Decline to give personal information over the telephone.
· Ask for a call-back number, then call your bank, credit card company, or medical office directly and ask if they are trying to contact you for any reason.
· Once a child turns thirteen, you can check their credit report and should do so annually.
· Shred personal information in a cross shredder.
· Make sure all personal and financial information is securely stored.
The best way to avoid identity theft is to always stay in control of your personal and financial information. For mortgage planning and other financial information, contact Marc Rancourt at 1.877.LakeLoan.
