Phishing, Viruses and Spyware - Phradulent Techniques Thieves Use to Steal Your Money and Your Identity

Ahh, the innocent days before computers. All you had to worry about were thugs picking your pocket, snatching your purse or breaking into your house to steal your brand new twenty inch television, complete with faux wood paneling.

Times have changed, and thieves have too. Even worse, they are not only looking for your money, but also your identity. More precisely, your personal information, which thieves realize is more valuable than cash and jewelry from the hiding spot in your house. From your name, birth date, bank account number and SSN, scammers can pose as you to open accounts in your name and apply for credit cards, loans, even mortgages.

While most identity theft still occurs offline (read how to prevent id theft), there are common techniques thieves and hackers use to try and pry information from you online. Being aware of these techniques will make you much less likely to be fooled into handing a thief your passwords and bank account information. The most common methods are phishing, viruses and spyware.

Phishing - Online Bank Heists and Identity Theft

It may sound a lot like "fishing," and you are right. Scammers and spammers cast a wide net into the sea of cyberspace, to the tune of millions of spam emails, hoping to catch a few unwary victims in their net. Their bait is an email disguised as an official-looking notice from your bank, Ebay, Paypal, or other financial institution. This email will vary in the wording, of course, but the outcome is always the same: they are hoping you will click a link in the email and login to your account.

This is how it works. The wording will either be some sort of threat that your account will soon be deleted, or (even more tricky), a warning that your account has been accessed by an unauthorized party. The link they ask you to click will look to be official. For instance, if you bank at Citibank, the link could easily say www.citibank.com. However, the code underneath does not have to match the visible wording in the link.

To further disguise the theft, the scammer will build a website to look exactly like Citibank's website. This can easily be done using any graphics program. The thief will then create something called a subdomain on their website. For instance, the "www" in a website is actually a subdomain. A webmaster can create any name they like. Thus, if they register x76tyh.com, they will then add a subdomain called citibank.x76tyh.com. This could easily trick a lot of users into thinking the website they have clicked to is their actual bank.

To steal your information, you will be asked to login with your username and password. Once you do, the thief will capture this information, and they can login at the real bank to electronically transfer funds out of your bank account. Going further, they will ask to update your personal information. This is to steal your identity. If you input everything they ask, the thief behind the fraudulent website will have enough of your information to commit identity theft.

How to Prevent Being Caught by Phishing

Knowing that these scams exist is the best defense. Banks and financial institutions will NEVER send out emails asking for you to confirm your personal information. They will have this information themselves when you signed up for an account. If you are still unsure, NEVER click the link in the email. Instead, close your email program and type the website in manually.

Just before you enter your login and password, make sure there is a lock sign on the bottom right of your browser, and that the website address begins with https. The s at the end means "secure," and proves that the site is authentic. Fraudulent sites can also use https - however, there will be a security warning stating that the security certificate does not match the website. Do not proceed further.

Viruses and Spyware - A Deadly Combination

You should definitely be aware of computer viruses. They have been in the news for about a decade, now, and continue to be a major problem. Like phishing, though, many viruses and spyware are spread through email attachments. Other sources include "free" software, P2P file-sharing sites and fraudulent websites.

Viruses and spyware are pieces of computer code that change or add files inside your computer. These changes can do everything from slowing your computer down to actually recording the websites you visit and the keystrokes you enter on your computer, information that is logged and secretly sent to a thief's computer system. Other viruses allow remote hackers to take control of your computer and use it to attack other computers. Sound like science fiction? It's real.

To protect against viruses, you must have an anti-virus program, such as Norton anti-virus, and keep it up to date. Use caution when visiting strange websites, and only click links or attachments in emails you trust. Norton will also scan incoming emails for viruses.

With the knowledge of the dangers online, you will know what to look out for, and what to avoid. Like everything in life, nothing is perfectly safe, but using discretion will keep your online experience enjoyable and protected.