Tag Archives: ID Theft Protection

Beware of Counterfeit Clothes and Scam Websites

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It’s important to know that there are scam artists out there who will try to take advantage of you. Be on your guard from a new influx of counterfeit clothes and scam websites. The internet has been a great asset to US clothing shoppers looking for good buys on the best brands. Unfortunately, it has also been a great asset to criminals dealing in counterfeit clothes they try to pass off as the real thing. While the illegal market in fake top brand clothing predates the World Wide Web, the Internet has opened up new avenues of opportunity for those dealing in counterfeit clothes.

The United States has seen a large rise in scam websites that typically promise that popular and expensive items of clothing manufactured by the best known brands can be had at bargain prices. They often have fake web addresses that falsely give the impression that they are operating in the US, when in fact the website owners may be scammers operating out of other countries.

The quality of the clothes is often far below the standards set by the real manufacturers, with some websites operating with no actual inventory. Consumers order, their money is accepted, but they never receive anything at all.

The dealing in counterfeit clothes is not some small scale operation. The sums of money involved are huge, with some estimates putting the total take of larger scam websites at millions of dollars per year. The counterfeit clothes racket also ties into other criminal activities, such as banking fraud and identity theft. Once you give a criminal organization your credit card number, there are a wide array of illegal ways it can be used to rob you again.

Because the clothing scam websites are located overseas, it can be all but impossible to complain about poor quality, orders never received or seek relief in the United States legal system. Even reporting the scammers to the law enforcement agencies of the countries from which they operate will seldom bring any results. Sometimes action can be taken to de-register the scam sites so that others won’t get duped, but even this can be ineffective.

The market for counterfeit clothes is not confined to the United States. In Great Britain last year, hundreds of scam shopping websites were closed for selling fake designer clothing and jewelry. In Ireland, poorly made counterfeit clothing became so widespread that the European Consumer Centre made a special plea to consumers to be cautious when buying clothes online.

The center strongly advises “consumers to do comprehensive research on a trader when shopping on the Internet” a spokeswoman said. She continued to suggest that customer look for contact details, as any missing information is a red flag.

It’s also important to know what too look for with counterfeit products. Examine the product as closely as you can online, counterfeit designer goods often have logos that are fuzzy, misspelled, or otherwise off from the brand, something a high quality designer would never allow to ship. The stitching on counterfeit merchandise is often sloppy. If you can see the stitching without much effort, it is nearly guaranteed to be a fake.

Caution should always be used online, but becoming familiar with the genuine product and examining potential deals is one of the best ways to stay safe.

As counterfeit production becomes more elaborate, the proper tags do not necessarily mean a genuine product. As a result, many manufacturers of high quality clothing have taken extra steps to ensure their product stands out. Holographic logos and serial numbers are just a few methods that can ensure a legitimate purchase. Know the designer’s key marks and beware of products that lack them.

Be cautious of high fashion clothing being advertised at greatly reduced prices and only pay using a secure, refundable, method such as a credit card or a secure service such as PayPal.

Make sure you use online retailers that do provide genuine merchandise at a discount. In the end, you’re your own best advocate to prevent getting scammed. Use your common sense and know what you’re buying, and remember the old saying that “if it seems too good to be true, then it probably is.”

8 Ways to Protect Your Identity While Shopping Online

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Concept of mobile shoppingAs we move into the most frenzied shopping season of the year, scam artists will be on the prowl for vulnerable shoppers. To avoid becoming a victim, consider taking steps now to keep your financial accounts and personal information safe.

1. Skip attachments and hyperlinks. Even attachments from people you know can be nefarious, since those acquaintances could be infected with a computer virus. If the email contains unusual or scant wording, don’t open the attachment. The same logic applies to hyperlinks in emails (or requests for information received over text message). First hover over the link to make sure it’s going to direct you to a valid address.

2. Don’t make purchases over coffee shop lattes. Any public Wi-Fi connection, such as those offered at coffee shops or libraries, carry extra risks, since they aren’t private. Try to avoid shopping online or engaging in any financial transactions, like logging into your bank account, from such hot spots.

3. Protect your smartphone. Web browsers and retailer apps on mobile devices make it easy to shop on the go, but doing so can also expose shoppers to extra risks since many phones don’t have the same kind of data encryption that’s often installed on computers. Even taking a relatively simple step, like enabling the password lock feature on your phone, will make it harder for a thief to access private data stored on the phone in case it’s lost or stolen. The computer security company McAfee also warns against downloading apps that might steal personal information.

4. Don’t trust your “friends.” Hackers target social media, including Facebook and Twitter, because they know it’s easier to get people to click on a link that appears to be recommended from a friend. McAfee has identified dozens of examples, including free dinner offers at Cheesecake Factory and fake mystery shopper invitations. Offers that sound too good to be true, such as free iPads or free iPhones, are also a common lure. The company cautions against clicking on fake alerts from friends, who may have been hacked themselves, and avoiding shortened links on Twitter that claim to offer deals.

5. Open e-cards with caution. They can be cute, but they can also be malicious. McAfee warns that some e-cards download viruses onto your computer when you download them. To avoid that outcome, the company suggests only opening e-cards from domain names that you recognize.

6. Upgrade your passwords. The holiday season can serve as a good reminder to give your passwords a makeover; security experts recommend changing them regularly as a precaution against hackers. Avoid common and simple words, use long combinations of words that also incorporate numbers or symbols, and never use duplicate passwords for multiple accounts. Sites that offer two-step authentication, such as Twitter and Gmail, can also add another layer of protection.

7. Check up on an e-retailer before making purchases. Some fly-by-night operations take advantage of the uptick in shopping around the holiday season to collect cash without ever mailing out the goods in return, warns the Better Business Bureau. The same applies to in-person exchanges on Craigslist or other online sites. To protect yourself, the bureau recommends never wiring money or paying in advance, and bringing a friend to any in-person exchanges.

8. Review your statements. The first sign of identity theft is often an unfamiliar charge on a credit card or bank statement; reviewing those statements carefully and contacting your financial institution or card provider with any concerns can prevent a theft from expanding. Credit cards usually come with some measure of automatic protection, as long as you report the scam relatively quickly.

Following these tips might leave you feeling overly cynical about the world, but the real downer would be dealing with a stolen identity just as the holiday season is heating up.

Article Source: Kimberly Palmer for US News – Money, Http://money.usnews.com/money/personal-finance/articles/2014/09/16/8-ways-to-protect-your-identity-while-online-shopping

 

Steps to Protect Against Credit Card Fraud

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Secure purchasesIn light of recent retailer data breaches and with credit and debit card fraud becoming more frequent, be sure to read and follow these 8 steps to protect yourself and your identity from being stolen.

1. Be sure to get a new replacement credit or debit card if yours was compromised. If you suspect fraudulent transactions on your card and your financial institution hasn’t contacted you or provided you with a replacement card – be sure to call and request one.

2. Check your bank account and credit card activity online to see whether your card was used at any retailer that was recently hacked. Don’t wait for your print statement to come in the mail; check the latest account activity digitally with online access to your account information or by using a mobile banking app. Also watch out for changes to your debit card PIN.

3. Be alert for post-breach phishing attempts. Hackers don’t always get everything they need to break into your accounts, so they will typically send you emails or even call on the phone and pose as your bank or card issuer to try to trick you into giving up the missing pieces, including mother’s maiden name, account username and password, date of birth, and Social Security Number. Do not give this information out – your bank will never call, text, or email you for the information you already provided when you opened your account.

4. Lock down your credit report with a security freeze, which essentially shuts off access to your credit history by new would-be lenders. If a hacker applies for a loan in your name, the creditor is less likely to approve it if he or she can’t see your credit file. Freezes are typically free for victims of identity theft.

5. Get as many free credit reports as you can per year so you can regularly monitor them and keep an eye out for fraudulent new accounts. You can get three free credit reports (one from each credit bureau) from annualcreditreport.com.

You’re also entitled to a free credit report from each bureau after you file a 90-day fraud alert, which you should do every 90 days if you’ve been a victim of a data breach, or have a good-faith suspicion that you’re about to become a victim of identity fraud.

6. Change your passwords regularly on your various financial accounts and use strong passwords to thwart hackers and protect yourself online.

7. Don’t panic, but take a breach threat seriously, because this problem is now a fact of life until the big payment card brands, banks, and retailers improve the security of payment processing systems in the U.S.

 

Will Paying Off My Car Loan Help My Credit Score?

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Credit-Score-325x222There are a lot of different kinds of credit out there. One of the most common forms is the auto loan. Though we are all itching to pay off our long-term debts and own something free and clear, there are a few precautions to know about before racing to get that statement to read zero.

To determine if paying off your car loan will help your credit score, it is important to understand several factors that go into your credit score.

Multiple facets of FICO

First, it’s important to understand the components that make up your FICO credit score. There are five key elements that are used to makeup that all-important number:

  • 35% of your score is weighted toward your payment history
  • 30% is weighted toward the amounts owed on your credit cards
  • 15% is devoted to length of credit history
  • 10% is generated by new credit
  • 10% comes from types of credit used.

The relative importance of each category depends on the consumer themselves.

If you have an auto loan that you’ve been diligent about paying, you’ve benefitted from that 35% devoted to payment history. By paying it down, you are also contributing to that 30% element of amount owed, since theoretically you are decreasing your credit utilization rate. However, if you’ve been increasing the balance on other forms of credit, that may cancel out some of that good behavior.

If you have a 3 to 5 year car loan, you also have length of credit history going for you. The new credit category doesn’t really apply in this scenario.

Types of Credit

But what’s interesting is the 10% weighted to types of credit used. On a positive note, a car loan alters the types of credit you have, assuming you have things like credit cards or even a mortgage.  However, if you pay it off, you may eliminate this type of installment loan as a type of credit used (this is a very different type of credit than a credit card).

Your ability to pay installment accounts, in addition to others, demonstrates that you are responsible and diligent enough to plan your finances around all these different types of credit.

The Biggest Factor

Weighing against all this, however, is a large factor that requires you to look more holistically at your credit lifestyle. A general rule of thumb is that if you can pay off a debt of any kind, in full, do so (with the exception of a mortgage).

5 Things You Probably Didn’t Know About Identity Theft

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WideModern_IdentityTheftComposite_121813620x413We’re all experts on identity theft.

Not by choice – but live your life, and it’s hard not to pick up something on the topic. And odds are, you or a friend or family member has been a victim. According to a U.S. Bureau of Justice Statistics survey of 70,000 people, 1 out of every 14 Americans ages 16 or older has been a target or a victim of identity theft.

So in the interest of protecting yourself and learning even more about identity theft, here are some things you probably didn’t know.

Military members are particularly at risk. Military veterans file more complaints about identity theft than any other group, according to Scott Higgins, CEO and founder of Veterans Advantage, a national program that partners with corporations, offering discounts on various goods and services. The Federal Trade Commission even designated July 17 as Military Consumer Protection Day to help educate the military about the dangers of identity theft.

What is it about being in the military that makes members such prime targets? Higgins says servicemen and women are conditioned to provide whatever personal information is asked of them throughout their service. “Unfortunately, this ‘conditioning’ often stays with them beyond their careers, leaving them susceptible to both ID theft and data grabbers who bird-dog veterans – offering a small perk and then selling their personal data wherever they can make the biggest buck.”

Medical identity theft is becoming a problem. Just because someone isn’t using your credit card illegally doesn’t mean you’re safe from identity theft. Someone could be using your name to get free medical services at a clinic or hospital, “possibly sticking you with the bill,” says Van Zimmerman, compliance and solutions architect at DataMotion, an email encryption and health information service provider in Morristown, N.J.

According to the Ponemon Institute, a research center devoted to privacy, data protection and information security policy, medical identity theft has increased 20 percent, and almost two million Americans have fallen victim. How does it happen? A thief with access to your personal information can create a fake ID with your name on it, and suddenly they’re you – at least as far as a hospital or doctor’s office staff knows.

Unfortunately, there isn’t much you can do to avoid this since, as Zimmerman says, so many of consumers’ medical files are managed by third parties. But it may give you yet another reason to be careful when it comes to giving out personal information.

Identity theft via computer games is a growing trend. According to Rob D’Ovidio, an associate professor of criminal justice at Drexel University in Philadelphia, video game accounts “are increasingly coming to the attention of identity thieves as they realize that these accounts hold real-world monetary value. Trends in phishing show attacks against financial services, online payments services and online auction brands decreasing, while attacks against video game and social networking brands are increasing.”

Phishing, in case you’re not aware, occurs when scammers construct a fake website with the goal of luring consumers to provide their personal and financial information. For instance, an email hits a gamer’s inbox, stating there is a problem with their account information. The gamer clicks on the link and provides information to the scammer posing as the legitimate service. Or a consumer might receive an instant message, seemingly from a friend, with a link to a gaming website – but clicking on the link brings malware, a type of software that can disrupt your computer or steal your personal information.

D’Ovidio says criminals who manage to access video game accounts through phishing and other methods can also steal virtual money and virtual goods and sell them for real-life dollars. “As well, video game and video game console community accounts are, at times, tied to the account holder’s or their parents’ credit card,” D’Ovidio says.

Search engine poisoning is more popular than ever. “Identity thieves are increasingly using a technique known as search engine poisoning to manipulate the results that show up and bend reality,” says Hugh Thompson, a Columbia University computer science professor and the program committee chair of RSA Conference, an annual information security conference.

Thompson says identity thieves, hackers and attackers can manipulate search engines so that their fake websites “appear higher in the search results than the real thing.”

Then, if it works, you’ve just been phished. Fortunately, there are ways you can spot a fake, and some of them are pretty obvious. If there are a lot of grammatical errors on the site, for example, that may be a danger sign. Many of the rules in the next section can help you realize you’re about to be had.

Criminals like to put fake Wi-Fi hotspots up at public Wi-Fi hotspots. If you go to a hotel or airport and log onto the official Wi-Fi hotspot, generally speaking, you’re perfectly safe. The problem is that you may wind up logging onto a fake Wi-Fi hotspot that simply looks like it belongs to your hotel or the airport, says Thomas Way, associate professor of computing sciences at Villanova University in Villanova, Pa.

He says there’s no sure-fire way to identify a criminal’s hotspot, but there are red flags to look for. First, look for the SSID (service set identification), the “name you see in the list of hotspots, and see if it is the one that the hotel, airport, et cetera, has told you to use,” Way says. “Second, when you get the typical approval page, where you usually click on a button or checkbox to agree to the terms of use, you should never have to enter identifying information, only, at most, a hotel room number and last name. If it asks for more, don’t do it.”

Way adds that just to be safe, look at the URL of the first page. “It should match whatever the page claims to be,” he says. “If it is a hotspot provided by the hotel, it should either be the hotel Web address or it should match the company that is providing the hotspot. If it is a spoof page, it’ll be noticeably different.”

Despite all the talk about online identity theft, you still need to watch your wallet. According to Phrantceena Halres, CEO of Total Protection Services Global, a Charlotte, N.C.-based security services company, only a fraction of identity theft cases are related to online fraud. “The majority is made up of stolen credit cards, checkbooks and wallets,” she says.

That’s because plenty of criminals aren’t computer geniuses. Most of them are hoping you’ve been careless enough to leave your wallet, filled with cash and credit cards, lying on the passenger seat of your unlocked car.

*Article by Geoff Williams of USNews. Click here to view the article source.

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