The Risk Of Electronic Fraud & Identity Theft

Electronic Fraud and Identity Theft
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Human beings are pretty sensible when presented with an imminent threat or risk. That is, if it's staring us directly in the face. Many threats and risk are presented in subtle ways, and it is these subtleties we tend to overlook.

It's The Little Things We Tend To Overlook
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Thousands of years ago, it was the subtle things that caused us to take action, to error on the side of caution and protection. A good example, the reports regarding animals seeking refuge early on during the tsunami that claimed the lives of over 300,000 people this past January. Over time, most people have lost the ability to identify the signs, determine the probability, validity, and impact of certain threats and risk.

Making Assumptions vs. Staying Vigilant
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At Home, my family has given me the nickname "Safety Dad". I tend to be hyper-vigilant when it comes to the safety and protection of my family, probably to a fault. I take a similar position on the security of my computer systems and my financial well-being. On the other hand, I tend to make assumptions about things when I should not. For the most part, I like to think that people are good natured. I believe the majority of people would like to think this way. The sad fact is, this is an assumption that can impact us greatly, and not in a positive manner.

The purpose of this article is to share with you my thoughts and position on some of the basic things you can do to protect yourself from several types of threats. Particularly those that involve electronic fraud and Internet fraud. Although some of these items are not directly related to the Internet, the moment someone has your private or financial information (identity theft), the Internet will be one of the first places they visit.

(Protect Yourself Against Electronic Fraud)

Automated Teller Machines (ATM) & Skimmers
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Have you ever heard of a "Skimmer"? If you haven't, you need to be aware the risk this presents you. Skimmer's are devices that appear to be a legitimate part of an automated teller machine but are in fact, fake card readers. They capture all the information stored on the magnetic stripe on the back of the card. Skimmer's have been around for quite some time but their use is on the rise again. The following link will show you what a skimmer may look like and how it is used.

Links
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http://www.defendingthenet.com/Newsletters/ATMSkimmerFraud.htm

Did you know the cost to a bank or ATM vendor is minimal if their machine is compromised, but to you it may be severe? The company that owns the ATM only has to worry about the cost to replace the machine, plus the amount of money inside. You, on the other hand, stand to loose not only your bank account funds, but possibly your identity.

Phishing and Web Site Redirection
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This type of electronic fraud comes in many forms, and is one of the most popular ways of collecting private information, and money from the masses. Why? Because it is simple to do and very effective.

If you receive an e-mail from your bank, credit card company, or other online merchant like, Ebay.com or Amazon.com, requesting information such as passwords and financial info, delete it and report it immediately. Many of these e-mails link you to web sites that look exactly like that of the real company but are in fact fakes. Take a look at ebay's Online Security and Protection section to get an idea of what you need to do in order to identify scams like these.

Links
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http://pages.ebay.com/help/confidence/index.html

If you receive an e-mail from someone promising you millions of dollars if you assist them with their finances, delete it immediately!. Some of these scams have been running for years and new ones surface frequently. I recently saw one supposedly from the wife of the late Yasser Arafat, promising millions of dollars if someone would help her establish a trust fund in the US. The reasons these types of e-mail scams are so wide