Top Five Identity Theft Scams

by the Better Business Bureau, http://central-northern-western-arizona.bbb.org/

The risk of becoming a victim of identity theft is everywhere. Criminals can gain access to personal information through various ways including mail, computer, credit cards, and even garbage cans. Your BBB has identified the top five scams seeking to steal your identity in 2010.

“ID theft prevention should always be on an individual’s mind,” said Matthew Fehling, President/CEO of BBB. “When it comes to protecting your identity, an ounce of prevention is worth far more than the amount of money, energy, and agony that goes into getting your life back to normal after your financial and personal information has been stolen.”

The Federal Trade Commission (FTC) estimates that as many as 9 million Americans have had their identities stolen this year. Victims may not be aware about the theft until they review their credit card statements and credit reports, or are being contacted by a debt collector.

BBB recommends being on the lookout for the following identity theft scams:

1. Social-Networking Scam - With the rising use of social networks, ID thieves can hijack accounts and post worrisome status updates, urging friends to send money. Frequently, these messages and status updates revolve around being mugged overseas or being stranded out of state with no money. Friends who read the message immediately grow concerned and try to help by wiring over funds to identity thieves.

BBB Advice: Contact friends and family to speak with them personally about the message received. This will help determine if the message received is legitimately from a friend.

2. Telephone Denial of Service Attack Scam - Criminals will tie up a phone line with hundreds or even thousands of calls, while they loot bank accounts. As a result, the bank can’t contact consumers to verify the transactions being made because of the tied-up phone lines.

BBB Advice: Never give personal information to an unsolicited caller or via e-mail; change online banking and automated telephone system passwords frequently; check account balances often; and protect computers with the use of the latest virus protection and security software.

If you have been targeted by a telephone denial of service attack, contact your financial institution and telephone provider, and file a complaint with the Internet Crime Complaint Center.

3. Renter’s Scam - The renter’s scam is also a rising trend. Criminals pose as homeowners listing the personal information of the “real” homeowner asking potential tenants to fill out applications that require personal and financial information, as well as money that is to be sent to an overseas address. The criminal then disappears, leaving victims out of their money and a home, as they realize they were not working with the “real” property owner.

BBB Advice: Always research the property owner thoroughly before providing any personal information and entering into any sort of financial agreement. Never wire money to an overseas address you are unfamiliar with since it will be virtually impossible to recover.

4. Charity Scam - Criminals pose as legitimate sounding charities seeking to collect money for a particular cause. Many set up fake websites and send e-mails to unsuspecting users requesting sensitive information such as social security numbers and passwords, allowing criminals to steal your identity.

BBB Advice: Before making a donation, remember to review any charity with BBB’s Wise Giving Alliance. Visit www.bbb.org/charity to verify that a charity meets the BBB’s 20 Standards for Charity Accountability.

5. Job Scam - Work-at-home scams are conducted by cybercriminals who recruit victims to engage in illegal activities such as money-laundering. Typical scams include e-mails that involve a “you are hired” subject line and specifically target job-seekers. The e-mail, supposedly from the human resources department, will forward new-hire forms that need to be filled out. These forms require the applicant to submit personal information such as one’s birthday, social security number, and bank account numbers which cybercriminals can use to steal one’s identity. The victim may also be instructed to deposit checks, which are usually fake, and then asked to wire funds.

BBB Advice: To avoid a job scam, research the company thoroughly and make sure you have legitimate contact information. Contact the company directly to verify they are requesting your personal information and never wire any funds.

If you have become a victim to any of these identity theft scams, file a complaint with your BBB by visiting arizonabbb.org or calling 602-264-1721.