Common Types of Fraud and Scams:
A scam is a fraudulent scheme targeting an individual's confidence to release information.
There are three types:
Phishing ,Vishing,Smishing
Phishing:
Phishing is a type of Social Engineering used by identity thieves using emails.
For Example: In phishing, you receive an e-mail from what seems to be a familiar financial institution or company you have an account with (Bank ,E-Commerce site for example), asking you to check your account due to an alleged error or problem. You will then be asked to click to a webpage that looks legit. On the page, you'll be asked to verify personal information, such as your account number, password and Social Security number. In another variation, you'll be asked to email your personal or financial information.in this they will get your data stored in their database and they can easily do hacking.
Vishing:
Phishing over the phone is known as vishing. Instead of sending an e-mail, scammers will call you and get your deatils about your bank or another institution you trust, and will ask for a password or Social Security number.
SMiShing:
Smishing is accomplished through text messages on a cell phone by asking you to call a particular number or click on a link that could contain malicious code that could potentially steal information stored in your cell phone without your knowledge.
How to avoid phishing, vishing and smishing:
- If you're asked to provide personal or financial information, don't bite. Email and phone is not a secure method of transmitting personal information, and no honest company will ever ask you to transmit such info to them over email or the phone.
- Look for inconsistencies. Maybe there's some bad misspellings in the message, or the company name is capitalized when it should be in lowercase. Phishers are getting better at writing "realistic" copy, but often strange grammar is another giveaway.
- Is the URL suspicious? If you get a message that claims to be from Amazon but you end up linking to a website without amazon.com in the URL, you're probably being taken for a ride.
- Go straight to the source. If you're suspicious about a request made of you, go straight to the official website of the company in question (not the link given to you in the email) and log into your account. If you have an official customer service number on hand, call it and double-check.
- Protect your email. Make sure you're up to date on anti-virus software, firewalls, and email spam filters ? a good defense will often prevent you from even seeing a phishing attempt, let alone getting victimized by one.
- Review your credit card and bank account statements regularly.If by chance you do happen to get hooked by a phishing scam, you should be able to detect illegal activity on your account through reviewing your statements. Many credit cards have extra protection against credit theft ? check with your card to see what's available.
- Get the word out. If you receive spam that is phishing for information, send it to spam@uce.gov and to the company, bank, or organization impersonated in the phishing email. Most organizations have information on their websites about where to report problems. If you believe you've been scammed, file your complaint at ftc.gov, and then visit the FTC's Identity Theft website at www.consumer.gov/idtheft.