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.
Here's to your success.
Tim Knox, Founder For more information on starting your own
online business visit http://www.dropshipwholesale.net, the
website for online entrepreneurs.
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