5 Identity Theft Scams You Should Be Aware Of

Ask yourself this question. Am I confident that my identity is safe online? 

Now let's take that one step further. Are you prepared for devastating financial repercussions if someone steals your identity? 

I don't mean to be melodramatic, but over 30 million Americans fell victim to identity theft between 2017 and 2018, resulting in almost 30 billion dollars in losses. Now you know that, are you still so confident? 

One action you can take immediately to ensure you don`t get scammed is activating a credit freeze, but if that is visible, you can still rest easy by knowing what the scams are and how the thieves use them

By doing this, it effectively stops all new credit being taken out in one’s name as lenders will not lend to people without first viewing their credit report.

So, let us stop them in their tracks and look at how you can secure your online identity: 

1. Don't Get Caught in The Phishing Scam Net

These are as deadly as a trawler's net scouring the ocean bed.

Phishing scams are attributed to the most significant percentage of identity thefts online today; this is because they are so convincing in their approach. They do it by mimicking a company that you knowingly use and trust, one that you've willingly and confidently provided with your details. 

How they do it in detail: 

An email will arrive, pretending to be a company you've just done business with, they thank you for your recent order and then tell you there's been a problem. Next, they instruct you to follow a link to an exact duplicate of the original website, where you enter your login details, and that's it.

But once you log in, they rob your personal information, and if that's not sufficient, they will then request you to re-enter your payment details too. 

How to spot them: 

Your first form of defense is to not click on any links sent by companies that would typically never request you to do so, and this goes for emails too. Also, legitimate companies never urgently ask you to provide financial information; it's an absolute taboo in the world of e-commerce. 

Action to take:

If you are unsure at any time, call the company directly, and they will confirm if the email, link, or website is legitimate

2. Tax Identity Theft, A Double Blow to Your Income

No one likes filing end of year tax returns, but what's worse is when a thief files a false one in your name and then claims a refund!

Yep, not even the IRS is out of reach of the scammer's net. Unfortunately, once a thief gets hold of your (PII), your Personal Identification Number, the IRS has no way of knowing it's not you.   

These criminals use highly sophisticated scams to get your personal information and then use whatever means available to drain you of any available funds, and even future ones.

Red flags to look out for that could be an IRS scam are:

• Contact claiming to be from the IRS and asking you for your PII. The revenue, just like banks, will never do this.

• As mentioned in the Phishing chapter, beware of any emails claiming to be the IRS and asking you to click on a link. If you do, they will install a malware virus on your computer and extract your information without you even knowing it. 

• If you have a tax return rejected when you know it shouldn't be, this could be a cause for concern, and you should investigate it further by contacting the IRS directly. 

 

3. Medical Identity Theft Can Leave You Feeling Sick

Medical identity theft can affect you in two ways, financially and physically.

Financial:

It starts with the criminal getting hold of your PII, which they then use as their own to gain medical treatment. The first time you will be aware of the scam is when the medical bills arrive at your front door, you can, of course, dispute them. However, if the invoice doesn't come to you, then you have an even bigger problem, as your credit rating can be severely affected due to unpaid bills.  

Physical:

Your health is your wealth! Now the criminal is imposing as you to gain medical care; your medical records could be updated with their medical information. Meaning another doctor could unknowingly treat you based on their physiological history. 

4. I`m a Prince, And I Urgently Need Your Help, What The ….?

The 419 Nigerian Prince scam (also known as the advance-fee scam) is named after the Nigerian criminal code that it violates, and has been in use long before the internet existed. Initially, you were contacted by letter, sent from an imprisoned prince asking for assistance. The mail may now be electronic, but the scam is still the same. 

This scam preys upon the innate goodness of people. Usually, the older generation, or those living in isolation, but of course, it can happen to anyone. 

The bait:

It will begin with an email asking for your help, telling you some elaborate story of how they need your assistance to escape a dictatorship, of something similar, and how they are rich but can't access their funds through their account. Then they will ask you to allow them to deposit the money, (quite often in the hundreds of thousands) into your bank account, and will offer you a handsome reward for assisting them.

The sting:

To transfer the funds, they, of course, need your bank details, and once they have them, money is going only one way, out of your account. Millions of people fall victim to this style of scam every year, and it can come in various disguises, so much so that the IRS was recently scammed out of $11 million by criminals using an updated form of the legendary 419 Nigerian Prince scam. 

5. Prize Scams, If It Sounds Too Good to Be True!

You've won a free holiday in a competition you never actually entered. What are the odds? Wow, you are so lucky!

And now, all you have to do to claim your prize is to verify your personal identification information and pay a small fee to cover administration costs.

Thank you, and enjoy your holiday. 

Kind regards, 

A. Cunning Criminal. 

Seriously, that's how the email will read. You might be thinking that no one falls for such a scam, trust me, millions do every year. You see, it's like the 419 Nigerian Prince scam, these unscrupulous criminals are preying upon those in society that are fragile and in need of some good fortune. 

Even the cops employ this scam to significant effect to flush out wanted criminals in hiding. They used it in New York, where they sent out falsified social security lottery winning prize forms to the criminal's last known address, informing them of their good luck. To claim their prize, they had to be at a hotel on a particular day and time. Almost every wanted criminal arrived. Many saw the funny side and posed for photos with the arresting police officers!

Conclusion

If criminals can fall for these scams, anyone can, as they prey on human nature. Always think twice when asked to do something out of the ordinary online, listen to your inner voice warning you that somethings not quite right, and if something seems too good to be true, then it most likely isn`t. Stay vigilant, and you will stay safe.