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How Identity Theft Works

Identity Theft Schemes Exposed: Discover How Identity Theft Works

You need to know how identity theft works and how to best avoid becoming its next victim. Identity theft on the Internet is a major threat to those of us active in the online world.

Below, I outline some of the common ways that thieves can obtain your personal information online, and I offer advice on simple measures that can be taken to minimize the risk.

Phishing

Online thieves engaged in "phishing identity theft" or "brand spoofing" create official looking emails and websites that appear almost identical to those of legitimate companies from which they request your personal information.

The messages often use fear or urgency to trick you into revealing your account number or other identifying information. Links within such messages often take you to fake websites that look almost identical to the real website.

Internet identity theft on the computer is widespread. Users of online businesses such as AOL and PayPal are constantly targeted by thieves engaged in phishing, and you must always be on guard.

Advice

Banks and other legitimate companies will NEVER send you an email requesting your personal information. If you receive a suspicious email, do NOT click on any provided links. They may lure you to a bogus website. Scammers can even modify the browser's address bar to give it the appearance of a secure (https) webpage.

Use Google search to obtain the real URL of the company and contact them directly, or better yet, use your telephone directory to get the real number of the company and call them to enquire further. Never trust any link or telephone number provided in a suspicious email.

Vishing

"Vishing" is similar to phishing except the scammer's email directs you to a telephone number rather than a website link. Or, the call could originate offline as a computerized telephone message. The voice on the phone falsely claims to be a real company and uses unsettling information and urgency to get you to disclose your personal information.

By using Voice over Internet Protocol (VoIP) to connect the call, the fraud artists can identify telephone key tones as you enter information on your telephone's key pad. It's possible that the caller ID information on your telephone display will be altered to reflect the bogus company, so don't trust it.

Advice

NEVER respond to such emails or calls and NEVER trust the caller ID information. If concerned, hang up and contact the real company using a legitimate number obtained from the telephone directory. By always being conscious of how identity theft works, you can avoid being duped.

Pharming

A specialized spyware or virus infection on your hard drive (possibly delivered through an email) or "DNS poisoning" at the server level can permit an online thief to redirect you from a legitimate website to a malicious website without your knowing. Once you enter your user name and password at the bogus site, they've got your identification, and can then access the legitimate site posing as you.

Advice

This is a fast growing method of identity theft on the computer, and due to its sophistication you are unlikely to know when it happens, as the bogus site will look very legitimate. If your browser can, always "authenticate" the identity of the arrived-at webpage before entering your personal information.

Or, a simple yet very effective test is to enter a false user name and password in the required sign-in fields. A bogus site will happily accept the false input while a legitimate site will indicate a "sign in failed" message and request that you enter the information again.

Fake e-Commerce Websites

Websites are set up to offer too-good-to-be-true offers whose only purpose is to lure you into giving your credit card number and mailing address. These exploitive websites will be in operation for only a few days or weeks before shutting down without a trace. They are often promoted through spam email messages sent by thieves who count on you not knowing how identity theft works. Always be suspicious of unsolicited offers.

Advice

If the offer looks "too good to be true," it often is. Carefully investigate any offer on the Web and only deal with legitimate website businesses even if you have to pay more for the item. NEVER respond to spam email messages no matter how interesting or attractive the offer seems.

How To Avoid Identity Theft Schemes

The above are just a "few" examples of how identity theft works. The "careless" use of Wi-Fi, public access computers, social networking sites, and online dating services can also put you at risk. Be careful about the type of information you disclose. You need to protect your personal data from identity thieves.

Here are some additional identity theft prevention tips:

Never include your personal or financial information in an email. No email message is secure; its contents can be intercepted.

Frequently update your computer's operating system and browser software to take advantage of new security fixes that help in the prevention of identity theft.

If you use a PC computer, use a firewall plus quality anti-spyware and anti-virus software faithfully. Mac computers are much less prone to attack, which is why I love my iMac, but a built-in firewall and anti-virus software are available for Mac users who are concerned.

Visit the Scams/Fraud section of the Royal Canadian Mounted Police (RCMP) website for more information on how identity theft works and tips for the prevention of identity theft on the computer.

The following pages also offer identity theft prevention tips:

Ways To Prevent Identity Theft

Credit Cards And Identity Theft Tips

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