Beware The Latest
Internet Identity Theft Scam
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 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 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 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.
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This article has been written by well know businessman and veteran
entrepreneur Tim Knox. Learn more about Tim and how to profit using Ebay and insider wholesale drop shipping
techniques by visiting Drop Ship Secrets
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