How to detect Internet Scams

With online financial transactions like internet banking, online shopping, trading of stocks and payment of utility bills becoming popular, certain vital information has to be divulged, like the account number, social security number, login id and the password. It's here that scammers take advantage of gullible consumers. Knowing the latest trends in the scamming industry can help you protect yourself from being victimized.

The most common of Internet scams is Phishing. This is where unsuspecting victims usually receive fraudulent e-mails containing authentic looking company logos of familiar graphics and are asked to divulge financial information. Phishers then use this information to steal money and personal identities. This can happen when one is making card purchases online. So, how do you avoid Phishing? Make sure you're logging into only the company specified website address. Retype the web address in your browser rather than click through e-mail links. Always enter the credit card number and the password each time you make a purchase but don't save them, even if the browser prompts you to do so.

Many phishers are now trying techniques used by the virus writers. Here the Phishing program activates automatically when you open an email even if you don't click anywhere in it. Once infected, the scammers change the IP (Internet Protocol) address in your PC to their choosing. The fraudsters then go onto connect the IP address with phoney bank/credit union Web sites, which forces your browser to go to fake Web sites that look like your financial institution's site.

The virus then records user names and passwords when the user visits any of the online banks and payment sites programmed in the virus. This form of Phishing is dissimilar to the earlier ones as they don't have to lure you to a specific web site. Instead, they get your username and password once you log in to a banking web site. A program called keylogger then copies these information including takes screen shots of your PC activity. The virus then mails this sensitive information automatically to the Phisher.

Be careful when responding to unsolicited emails. The best solution is to always install, run and update your antivirus software frequently and it's also advisable to install a firewall. Always monitor your accounts regularly rather than wait for the monthly mailed statement from the bank. Make it a habit to change your online banking and shopping account passwords every three to six months.