| Account Identity Theft |
| By Credit Federal |
Published
06/27/2008
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Fraud and Scams
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Spot Fraudulent Identity Theft Attempts to Steal Your Account Numbers
Phony emails or Internet solicitations attempt to lure people who have credit accounts (whether a secured or an unsecured credit card, a checking account or other credit) into revealing the personal information (such as account numbers, PINs or social security numbers) so the fraudster can steal funds. With knowledge and common sense, you can avoid fraud and scams.
The U.S. Government's Department of Justice defines phishing as: "A general term for criminals' creation and use of emails and Websites (designed to look like emails and Websites of well-known legitimate businesses, financial institutions and government agencies) in order to deceive Internet users into disclosing their financial institution and account information or other personal data such as usernames and passwords." Phishers then use that information for criminal purposes such as identity theft and fraud.
Finance, retail and Internet Service Provider customers are the primary targets of phishing attacks, according to a McAfee Security white paper titled "Anti-Phishing: Best Practices for Institutions and Consumers" (available on the company’s Web site at mcafeesecurity.com). The financial industry's Anti-Phishing Working Group also says: because the emails often look official, as many as 5% of recipients respond to them.
Several major banks and financial services groups have had their account holders hit with phishing emails recently. A number of these institutions have posted notices on their Web sites about the potential threat from email fraud.
"These schemes are being perpetrated with mounting frequency, intensity and creativity," said the Federal Deposit Insurance Corporation (FDIC) in a March letter to financial institutions. Account holders should be aware of some basic facts regarding banking information:
- The financial institution’s Web site should never be accessed from a link provided by a third party.
- Account holders should not receive e-mail messages from financial institutions requesting confidential information.
- Account holders can authenticate the institution’s Web site by checking the properties on a secure Web page.
The Federal Trade Commission recommends that consumers who have recently provided checking account or savings account or credit card information in response to unsolicited email notify the appropriate financial institution immediately to discuss whether the consumer should close the account. In the future, says the FTC, consumers who receive email from a company or government agency asking for personal information should contact that organization using a phone number or Web address they have used previously, rather than clicking on a hyperlink provided in the email.
The FTC adds that consumers who provided Social Security numbers to phishers should contact one of the credit reporting agencies, ask to have a fraud alert placed on their accounts and obtain copies of their credit report to be sure no new accounts have been opened in their name. Consumers can visit the commission’s Identity Theft Web site at consumer.gov/idtheft to file a complaint or learn more about minimizing the risk of damage from identity theft. In the future, the Department of Justice recommends that consumers take three simple steps to protect themselves:
- Stop. Resist the impulse to immediately click through to the URL, no matter how upsetting or exciting the statements in the e-mail may be.
- Look. Examine the claims made in the e-mail more closely and consider whether they make sense.
- Call. Call the company named in the e-mail and ask whether the communication came from them.
For more information visit the FDIC's news page and click on 'Announcements & Alerts' or visit antiphishing.org.
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