Starting A Home Based Business
Thursday, November 23, 2006
Phishing Scams - Don't Get Caught In The Net
WHAT IS PHISHING?
Simply put, phishing is a crime where criminals use social engineering techniques to persuade you to reveal sensitive information - such as your bank account details, your credit card details, passwords etc. Or, in plain English, they trick you into giving them your personal information so that they can use it to steal your money.
In order to get you to reveal your details, the fraudster normally assumes the identity of a trusted person or organisation - typically a bank, a credit card company or an online payment processor such as PayPal.
This is often carried out using electronic communication - both e-mail and instant messenger systems are widely used today, but telephone or normal mail can also be used by these fraudsters
HOW DOES PHISHING WORK?
The normal mode of attack is an e-mail or sometimes one of the instant messenger systems, but e-mail is most common. Typically the scammer pretends to be someone such as Paypal, Ebay, your bank, or a credit card company.
They will send you an e-mail, which looks very similar to the e-mail and website of the organisation being impersonated, complete with logos, graphics, similar font styles etc.They tend to use a headline which will either entice you into reading by stimulating your sense of fear, greed or even anger.
Some Typical examples are below:
1. Your account has been suspended
2. Thank you for your order
3. Someone has sent you money using (insert name) online payment system.
These are only typical - there are many other variants.
Item 1 might be used for banks, online payment processors or credit cards. The first time that you get one of these, it’s quite understandable that you would be concerned about your account.
The e-mail will advise you that your account has been frozen for some reason - possibly because of some security issue or misuse. You need to update your details before you can restore full access to your account. There will be a link for you to click on to access their site where you can update your details and everything will be fine after that.
However, if you click on the link you will be taken, not to your account but to the scammers website where any information that you enter will be used by them to assume your identity and either steal money directly from you or use your details to buy goods online.
Like the e-mail, the scammer’s site will look very much like the official site that is being impersonated. It will use the same font size, the same - or very similar - images, official logos etc. It’s surprisingly easy to do this and it’s easy to be fooled.
Item 2 is often used when impersonating a well known online vendor such as Ebay. The e-mail arrives, again the logos are very convincing, the type and size of font are the same as normal etc. - but you know you didn’t buy the item you’ve just been given a receipt for.
Not to worry, there’s a handy link in the e-mail which usually says something like “click here if you didn’t buy this item” which you can use to sort it all out.
Guess what happens when you click on that link. That’s right, you’re going to arrive at the scammers carefully disguised website and be asked to enter some of your confidential information which will then be used to defraud you.
Item 3 is used to appeal to your sense of greed. By now, we have the method of operation off by heart I think. The e-mail arrives - someone’s sent you some money - click here to confirm and receive payment - visit scam website - enter details and the rest is history.
SPOTTING PHISHING E-MAILS
After a while, phishing e-mails are relatively easy to spot and you can avoid them by applying a little common sense. There are also new software security tools available.
There are several things that can alert you to a phishing e-mail.
Even if you think that the e-mail is probably genuine you are always safer to log into your account by using your web browser address bar or by clicking from your favourites list.
Also, just to be on the safe side, make sure your aware of the information policy of your important online accounts. Most reputable companies will have details of what type of information they will send you and what type of data they may ask you for by e-mail. More importantly, they will probably have clear guidelines about the types of information that they will not ask you for.
HOW CAN YOU AVOID PHISHING ATTACKS?
Here’s your plan to avoid being phished:
Internet Business Tips ......... ¶ 8:35 pm 0 comments
Simply put, phishing is a crime where criminals use social engineering techniques to persuade you to reveal sensitive information - such as your bank account details, your credit card details, passwords etc. Or, in plain English, they trick you into giving them your personal information so that they can use it to steal your money.
In order to get you to reveal your details, the fraudster normally assumes the identity of a trusted person or organisation - typically a bank, a credit card company or an online payment processor such as PayPal.
This is often carried out using electronic communication - both e-mail and instant messenger systems are widely used today, but telephone or normal mail can also be used by these fraudsters
HOW DOES PHISHING WORK?
The normal mode of attack is an e-mail or sometimes one of the instant messenger systems, but e-mail is most common. Typically the scammer pretends to be someone such as Paypal, Ebay, your bank, or a credit card company.
They will send you an e-mail, which looks very similar to the e-mail and website of the organisation being impersonated, complete with logos, graphics, similar font styles etc.They tend to use a headline which will either entice you into reading by stimulating your sense of fear, greed or even anger.
Some Typical examples are below:
1. Your account has been suspended
2. Thank you for your order
3. Someone has sent you money using (insert name) online payment system.
These are only typical - there are many other variants.
Item 1 might be used for banks, online payment processors or credit cards. The first time that you get one of these, it’s quite understandable that you would be concerned about your account.
The e-mail will advise you that your account has been frozen for some reason - possibly because of some security issue or misuse. You need to update your details before you can restore full access to your account. There will be a link for you to click on to access their site where you can update your details and everything will be fine after that.
However, if you click on the link you will be taken, not to your account but to the scammers website where any information that you enter will be used by them to assume your identity and either steal money directly from you or use your details to buy goods online.
Like the e-mail, the scammer’s site will look very much like the official site that is being impersonated. It will use the same font size, the same - or very similar - images, official logos etc. It’s surprisingly easy to do this and it’s easy to be fooled.
Item 2 is often used when impersonating a well known online vendor such as Ebay. The e-mail arrives, again the logos are very convincing, the type and size of font are the same as normal etc. - but you know you didn’t buy the item you’ve just been given a receipt for.
Not to worry, there’s a handy link in the e-mail which usually says something like “click here if you didn’t buy this item” which you can use to sort it all out.
Guess what happens when you click on that link. That’s right, you’re going to arrive at the scammers carefully disguised website and be asked to enter some of your confidential information which will then be used to defraud you.
Item 3 is used to appeal to your sense of greed. By now, we have the method of operation off by heart I think. The e-mail arrives - someone’s sent you some money - click here to confirm and receive payment - visit scam website - enter details and the rest is history.
SPOTTING PHISHING E-MAILS
After a while, phishing e-mails are relatively easy to spot and you can avoid them by applying a little common sense. There are also new software security tools available.
There are several things that can alert you to a phishing e-mail.
- Do you actually have an account with the organisation which is purported to be the sender?
- Have they got your details correct (your name, your account number etc.)?
- What is the return e-mail address?
- Where does the “click here” link actually take you (check before you click)?
- Are there a lot of spelling and grammatical errors (lots of phishers are from countries which don’t have English as a first language).
Even if you think that the e-mail is probably genuine you are always safer to log into your account by using your web browser address bar or by clicking from your favourites list.
Also, just to be on the safe side, make sure your aware of the information policy of your important online accounts. Most reputable companies will have details of what type of information they will send you and what type of data they may ask you for by e-mail. More importantly, they will probably have clear guidelines about the types of information that they will not ask you for.
HOW CAN YOU AVOID PHISHING ATTACKS?
Here’s your plan to avoid being phished:
- Be aware of your online accounts information policy guidelines.
- Never click on a “handy” link in an e-mail - always enter the site using your browser or favourites list.
- Forward a copy of the e-mail to the official site in question. Most of them will be happy to confirm that it’s a phishing attempt or, alternatively, advise that there is a real problem with your account.
- Delete any phishing e-mails you get immediately after forwarding to the “real” company. Once you’ve deleted them, clear out your “trash” folder to stop any accidental clicking in future.
Internet Business Tips ......... ¶ 8:35 pm 0 comments
Saturday, November 04, 2006
Top Ten Scams To Avoid
In 2005 the UK's Office of Fair Trading (OFT) launched a campaign in order to raise awareness of the most common ways in which people are conned. The OFT identified the top ten scams targeted at UK consumers.
These are listed below and, if you look through them, you will see some patterns emerging. It should help you avoid being scammed - online or offline.
WORK-AT-HOME SCAMS
Advertisements for paid work-from-home schemes and business opportunities are often scams. Would be home workers who apply are asked for money up-front to pay for materials. After payment no more is heard from the parent company.
Another variation on this is where the company does actually send out some materials for assembly. These materials are usually very inexpensive. When the assembled products are submitted they are invariably rejected as they "do not meet the necessary quality standards". This method also gives the scammers a second bite at the cherry as they often sell a further kit with instructions for the necessary quality improvements to ensure acceptance in future.
Regardless of how good the quality is, the assembled items will never be accepted.
TELEPHONE LOTTERY SCAMS
Scammers impersonate representatives from a genuine lottery, such as the Irish Lottery or the Canadian Lottery. They make unsolicited telephone calls to their victims and advise them that they are going to be entered in a draw.
A few days later the victim receives another call to advise them that they have won a substantial amount of money. However, before they can receive their prize the victim must pay a fee for administration and taxes. The prize, of course, does not exist.
MATRIX SCHEMES
Often promoted online these schemes mainly involve websites which offering high cost electrical and electronic devices as free gifts in return for buying a relatively cheap product - for example a mobile phone charger. Consumers who buy the cheap product (take the bait) are then put onto a waiting list to receive their free gift.
The person at the top of the list receives their gift only after a predetermined number of new buyers sign up. The victims are usually encourage to hasten he process along by introducing their friends and family to the scheme. The large majority of people on the list never receive the prize.
PRIZE DRAW MAILINGS
The victim receives a notification by post that they have won a prize such as a holiday or a sweepstake draw. In order to receive the pies an administration fee or registration fee must be paid in advance. Once this is paid the prize will fail to materialise.
PROPERTY INVESTMENT SCHEMES
Potential investors attend a free presentation, the purpose of which is to persuade them to pay large amounts of money to enroll on a course which promises to make them a successful property dealer.
Some schemes involve the offer of buying as yet unbuilt properties at a discount. Others involve a buy-to-let scheme where the scammers offer to source, renovate and manage existing properties which they claim will provide good returns from rental income. The properties are often derelict and the tenants do not exist.
PREMIUM RATE TELEPHONE NUMBER SCAMS
The victim receives a notification in the post that they have won a prize - a holiday or a sweepstake. In order to claim the prize they need to call a premium rate number - usually beginning with 090 - which will incur high charges. Open there is a long recorded message and the prize simply does not exist.
INVESTMENT-RELATED SCAMS
The victim receives an unsolicited telephone call which offers the opportunity to invest in rare commodities such as diamonds, fine wines or shares. These investments are usually in areas which carry a high risk and where a high level of training, skill and experience is normally required.
The shares are not quoted on any conventional stock exchange. The diamonds, if they exist and are actually supplied, will be low grade and worth considerably less than the amount invested.
NIGERIAN ADVANCE FEE FRAUDS
This form of fraud has been around for many years. Many of the earlier scams originated from Nigeria, hence the name, but today similar variations can be seen from Iraq, Asia, Africa etc. The main requirement seems to be that the area should have recently had a war or some major political upheaval.
Today this type of fraud is mainly perpetrated via e-mail, but some traditionalist scammers may still use letters by post. The victim receives offer to share a large sum of money in return for using the recipient's bank account to transfer of the money out of the country. If bank account details are provided, the scammers may empty the victim's account.
Alternatively, the scammers may ask for money up front - usually for bribing corrupt officials in order to get the money out of the country.
CREDIT SCAMS
Another advance fee fraud, which often originates in Canada. Adverts are placed in local newspapers offering quick loans, even if the applicant has poor credit history. Applicants are told that their loans have been approved but they must pay an insurance fee prior to release. After the fee is paid, the victim will never hear from the scammers again and the loan amount will never be advanced.
PYRAMID SCHEMES
Pyramid schemes, sometimes called Ponzi schemes, offer a return on a financial investment which is based upon the scheme continuing to grow as new members join the scheme. The money from new investors is used to pay earlier investors - robbing Peter to pay Paul.
After a while the pyramid will collapse as it reaches the point where there are not enough new victims entering to pay off the earlier investors.
These top ten "hall of shame" scams are outlined here in fairly broad brushstrokes. Nevertheless, hopefully you can see some common patterns which will help you to avoid being scammed in future.
Hamish Hayward
Starting A Home Based Business
Don't get scammed - discover 6 key due diligence criteria that you can easily apply when starting your own online or offline business.
¶ 11:28 pm 0 comments
In 2005 the UK's Office of Fair Trading (OFT) launched a campaign in order to raise awareness of the most common ways in which people are conned. The OFT identified the top ten scams targeted at UK consumers.
These are listed below and, if you look through them, you will see some patterns emerging. It should help you avoid being scammed - online or offline.
WORK-AT-HOME SCAMS
Advertisements for paid work-from-home schemes and business opportunities are often scams. Would be home workers who apply are asked for money up-front to pay for materials. After payment no more is heard from the parent company.
Another variation on this is where the company does actually send out some materials for assembly. These materials are usually very inexpensive. When the assembled products are submitted they are invariably rejected as they "do not meet the necessary quality standards". This method also gives the scammers a second bite at the cherry as they often sell a further kit with instructions for the necessary quality improvements to ensure acceptance in future.
Regardless of how good the quality is, the assembled items will never be accepted.
TELEPHONE LOTTERY SCAMS
Scammers impersonate representatives from a genuine lottery, such as the Irish Lottery or the Canadian Lottery. They make unsolicited telephone calls to their victims and advise them that they are going to be entered in a draw.
A few days later the victim receives another call to advise them that they have won a substantial amount of money. However, before they can receive their prize the victim must pay a fee for administration and taxes. The prize, of course, does not exist.
MATRIX SCHEMES
Often promoted online these schemes mainly involve websites which offering high cost electrical and electronic devices as free gifts in return for buying a relatively cheap product - for example a mobile phone charger. Consumers who buy the cheap product (take the bait) are then put onto a waiting list to receive their free gift.
The person at the top of the list receives their gift only after a predetermined number of new buyers sign up. The victims are usually encourage to hasten he process along by introducing their friends and family to the scheme. The large majority of people on the list never receive the prize.
PRIZE DRAW MAILINGS
The victim receives a notification by post that they have won a prize such as a holiday or a sweepstake draw. In order to receive the pies an administration fee or registration fee must be paid in advance. Once this is paid the prize will fail to materialise.
PROPERTY INVESTMENT SCHEMES
Potential investors attend a free presentation, the purpose of which is to persuade them to pay large amounts of money to enroll on a course which promises to make them a successful property dealer.
Some schemes involve the offer of buying as yet unbuilt properties at a discount. Others involve a buy-to-let scheme where the scammers offer to source, renovate and manage existing properties which they claim will provide good returns from rental income. The properties are often derelict and the tenants do not exist.
PREMIUM RATE TELEPHONE NUMBER SCAMS
The victim receives a notification in the post that they have won a prize - a holiday or a sweepstake. In order to claim the prize they need to call a premium rate number - usually beginning with 090 - which will incur high charges. Open there is a long recorded message and the prize simply does not exist.
INVESTMENT-RELATED SCAMS
The victim receives an unsolicited telephone call which offers the opportunity to invest in rare commodities such as diamonds, fine wines or shares. These investments are usually in areas which carry a high risk and where a high level of training, skill and experience is normally required.
The shares are not quoted on any conventional stock exchange. The diamonds, if they exist and are actually supplied, will be low grade and worth considerably less than the amount invested.
NIGERIAN ADVANCE FEE FRAUDS
This form of fraud has been around for many years. Many of the earlier scams originated from Nigeria, hence the name, but today similar variations can be seen from Iraq, Asia, Africa etc. The main requirement seems to be that the area should have recently had a war or some major political upheaval.
Today this type of fraud is mainly perpetrated via e-mail, but some traditionalist scammers may still use letters by post. The victim receives offer to share a large sum of money in return for using the recipient's bank account to transfer of the money out of the country. If bank account details are provided, the scammers may empty the victim's account.
Alternatively, the scammers may ask for money up front - usually for bribing corrupt officials in order to get the money out of the country.
CREDIT SCAMS
Another advance fee fraud, which often originates in Canada. Adverts are placed in local newspapers offering quick loans, even if the applicant has poor credit history. Applicants are told that their loans have been approved but they must pay an insurance fee prior to release. After the fee is paid, the victim will never hear from the scammers again and the loan amount will never be advanced.
PYRAMID SCHEMES
Pyramid schemes, sometimes called Ponzi schemes, offer a return on a financial investment which is based upon the scheme continuing to grow as new members join the scheme. The money from new investors is used to pay earlier investors - robbing Peter to pay Paul.
After a while the pyramid will collapse as it reaches the point where there are not enough new victims entering to pay off the earlier investors.
These top ten "hall of shame" scams are outlined here in fairly broad brushstrokes. Nevertheless, hopefully you can see some common patterns which will help you to avoid being scammed in future.
Hamish Hayward
Starting A Home Based Business
Don't get scammed - discover 6 key due diligence criteria that you can easily apply when starting your own online or offline business.
