Your spam folder is probably full of them – those e-mails asking for money, claiming you won the lottery and beyond.
You may or may not have clicked on them, but we’re hoping you didn’t. Just in case, we rounded up four of the most popular e-mail scams and how you can avoid them.
Advance Fee Fraud (AKA “419″ or the Nigerian Scam)
The scam: Unsuspecting email users receive solicitations from a Nigerian dignitary offering them huge sums of money just for helping them move the government’s money around safely. The urgent message reads, “Having consulted with my colleagues, and based on information gathered from the Nigerian Chamber of Commerce, I am pleased to propose a confidential business transaction to our mutual benefit. I and my colleagues have in our possession instruments to transfer the sum of $35,500,000.00 into a foreign company’s account in our favor. This amount emanated as a result from an over-invoiced contract, executed, commissioned, and paid for about two years ago by a foreign contractor. We are therefore seeking your assistance in transferring this money to your account as it can only be remitted to a foreign account.”
The reality: They want your bank account. Do not respond as if you do provide their “representative” with your account number, money will be siphoned from your account. You should really avoid doing anyone you’ve never met favors.
Lottery Scam
The scam: Victims receive unsolicited emails that share seemingly happy news such as “Sir/Madam, We are pleased to inform you of the result of the Lottery Winners International programs held on the 17th of January 2005. Your e-mail address attached to ticket number 20511465897-6291 with serial number 472-971103 drew lucky numbers 8-66-97-22-71-64 which consequently won in the 3rd category, you have therefore been approved for a sum pay out of US$ 500,000 000. (five hundred Thousand United States Dollars). CONGRATULATIONS!!! ”
The reality: You will be prompted to contact their representative and if you do so, they will just work diligently to get your private information in order to conduct identity fraud. After speaking with them, your identity will be theirs, and you’ll have a whole lot of hard work to do to build your credit back up.
Phishing Scam
The scam: These emails appear to come from your bank or financial institution and will prompt you to log in and verify your information. Often the emails look authentic as they feature your banks logo and have easy-to-use links on the page.
The reality: Do not click through and complete any information, especially your credit card number to prevent credit card fraud. If you suspect you have received a fake email that will jeopardize your identity protection, call your bank directly. Do not use the phone number included in the email, simply find an old statement or call the number printed on the back of your bank card.
Check Overpayment Scams
The scam: The victims of this approach are those trying to sell item through online listings or auctions. After the perpetrator succeeds in “winning” the item, they ask if they can overpay for the item via check (or accidentally do so in making the payment) and then asks the victim to wire back the difference.
The reality: The victim later finds out that the check they received for payment bounced, the sale has fallen through and they are out extra money from the balance transfer and bounced check fees.
Despite the efforts of consumer groups and government initiatives to educate consumers regarding email scams, millions of dollars are lost annually to this crime variant. There will always be hunters who dupe the innocent and self-preservation and awareness is the best defense against falling victim to identity fraud.
Want to Avoid E-mail Fraud?
Q: What do I do if i receive one of these e-mails?
A: Nothing. Delete them, ignore them, but do not respond and do not give anyone your information.
Q: But it really sounds like they’re from my bank/credit union/credit card.
A: If you want to make sure, contact a representative at your bank and ask if they sent out information. Most lenders will not ask for your information over an e-mail, they’ll call or write a letter. The URL of the web site (the www. part) will also usually be incorrect or strange-looking.
Q: How do I report fraud?
A: The U.S. Department of Justice tracks several types of fraud. You can report to them. If it’s your bank, report it to their customer service.
Have you ever fallen for an e-mail scam?
I haven’t but A LOT of people I know have, because some people do such a good job, it’s so hard to tell what’s real and what’s not. I am SO glad the article included the information on how to report fraud. If we all do this, we can hopefully decrease it. Thanks!
Hello Fellow Kelly! I totally agree, I like this article because it will hopefully educate some of the more naive people out there!