Q: I use PayPal to accept credit cards for my online
collectibles business. I recently received an email that my PayPal account was going to
expire in five days if I didn't click a link in the email and give them my PayPal account
information. Being naturally paranoid I decided not to give this information and I'm happy
to say that my PayPal account did not expire. Was this a scam? -- Brenda A.
A: Be thankful that your paranoia kicked in, Brenda,
because you were about to fall victim to the scam of the week, this one aimed at the 35
million merchants and individuals who use http://Paypal.com as their online payment
processor.
The email you received was not from PayPal, but from an
Internet bad guy behind a forged email address using the http://PayPal.com domain. You
should understand that no reputable online company will ever ask you to provide your
account information. Think about it. They already have this information. Why would they
ask you to provide it.
Since I use PayPal for several of my online ventures, I,
too, received the email in question. The email first seeks to instill fear in you by
saying that your PayPal account will be closed if you do not provide personal information.
You are then directed to open an attached executable file and enter your PayPal account
information and other personal information that PayPal doesn't even require, including
your social security number, checking and savings account information, driver's license
number, and other personal information that can be used to clean out your PayPal account
and perhaps even steal your identity.
If you're not familiar with PayPal, it is a hugely
successful, web-based company (purchased by eBay in 2002) that many online retailers and
eBay sellers use to accept electronic payments for everything from newsletter
subscriptions to consulting services to just about any product for sale on eBay.
The allure of PayPal is that it does not require the seller
to have a bank merchant account through which to process credit cards. Anyone with a
verifiable email address and bank account can use PayPal and the service can be
implemented almost immediately after registering.
When someone places an order on a website that uses PayPal
for online payments, that customer is directed to http://PayPal.com to complete the
payment process using a credit card or electronic check. The merchant can transfer the
money collected in his PayPal account to his checking account any time he likes. Since
many larger merchants make this transfer just once a week or so, their PayPal accounts are
ripe for the picking from those who have the cunning and lack of ethics required to gain
access.
The shear number of PayPal customers is one reason it has
become a popular target of scam artists trying to steal personal information from
individuals and businesses alike.
Identify theft is on the rise. Thanks to the Internet
stealing someone's identity has never been easier. At any given moment, there are any
number of Internet thieves using all manner of high tech wizardry to steal personal and
business information from unsuspecting souls, and many times they can gain access to this
information simply by asking the person to provide it through fraudulent means.
The PayPal scam is just the latest in a long line of
sophisticated attempts to steal personal information through online means, Amazon, eBay,
Dell Computer, and many others have been the brunt of many such scams in recent years.
Identity theft is what's known as a knowledge crime, which
means that the criminal doesn't have to break into your house to rob you blind. If you
have a bank account and a social security number, you are susceptible to identity theft.
While most people are familiar with identity theft, most
business men and women never think about it happening to them, at least on a professional
level. Consider this: if a criminal can learn your business checking account number or the
number of your company credit card, they can steal far more from your business than if
they had simply knocked down the door and carted off your desk.
The Internet aside, most business and personal identity
theft is still the result of stolen wallets and dumpster diving. You should guard your
business records closely and be very careful what you throw away. Stop and think for a
moment what a criminal might find in the dumpster behind your office.
There's a good chance that dumpster has, at various times,
contained scraps of paper with your social security number, driver's license number,
credit card number, old ATM cards, telephone calling cards, and other pieces of vital
business information like bank statements, invoices, and purchase orders. A
dumpster-diving thief could literally rob your business blind in a matter of hours.
Here are a few ways to protect yourself from business and
personal identity theft.
- Never give out your first name, last name, business name,
email address, account passwords, credit card numbers, bank account information, PIN
number, social security number, or driver's license number.
- Change your online account passwords every 30 days. Believe
it or not, a hacker who steals your personal information can guess your online account
passwords in about two minutes. If your Charles Schwab online account password is your
birthday or the name of your first born or family pet, count on a hacker cracking that
code faster than you can say 'Bill Gates.'
- Never provide personal information in response to an email
or telephone call. Just because someone calls and says they are from Dunn & Bradstreet
and need to confirm your business information does not mean they are really from Dunn
& Bradstreet.
- Never give your business credit card number over the phone
to place an order with someone who has called you unsolicited. If you are interested in
what they are selling get their number, check out their company, then call them back to
place the order.
If you think that you have become the victim of identity
theft or think someone is trying to steal your identity or personal information you should
report them immediately to the Federal Trade Commission. You will find more information on
their website at http://www.consumer.gov/idtheft/. For more information on what to do if
identity theft happens to you visit http://www.privacyrights.org/fs/fs17a.htm.
So, if you ever receive an email from PayPal, Amazon,
eBay, or any other ecommerce website asking you to update your account information by
email you can pretty much bet the farm that it is a scam.
Here's to your success. |
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