Internet Fraud and Scams
How to protect yourself:
- Be cautious of anything on the Internet asking for or requiring money.
- Be cautious of offers for products or services you did not seek out.
- Be cautious of prizes if you did not enter a contest.
- Pay with a credit card. The best method of payment is by credit card, because you
can dispute the charges by contacting your credit card company if there is a problem.
- When selling an item online, be extremely cautious of someone offering payment with
a cashier’s check or money order. Be especially skeptical if the buyer tells
you the check will be for significantly more than what you’re asking and requests
that you wire back the difference.
- If you accept a check or money order, wait until you’ve received notification
from your bank that the check has actually cleared; confirmation that the check
has been deposited DOES NOT mean it is a good check.
Specific Scams to watch for:
- “Phishing” Scams: If you receive an e-mail from your
bank or credit card asking you to “confirm” your account number by clicking
on a website link, delete it; do not respond. The fraudulent e-mails look authentic
and the website it links you to may even appear like the company’s “official”
site. But if you enter the information requested, you have just given the keys to
your identity to an identity thief. Banks and credit cards will never contact you
through e-mail asking you to confirm this type of information.
- “Pharming” Scams: This is similar to a phishing scam,
but more dangerous. A pharming scam doesn’t require that you respond to an
e-mail. This scam involves an electronic “redirecting” of users from
a legitimate website to a fraudulent website. When you’re online at a secure
website, check to make sure the address in your web browser begins with “HTTPS,”
rather than just “HTTP.” Also, click on the padlock icon on your browser
to check the website’s Security Certificate belongs to the company whose website
you’re visiting.
- Nigerian Scams: These scams are typically rooted in Nigeria and
often claim to be coming from Nigerian officials; they often start off by asking
for help in moving a large amount of money from Nigeria to a bank in the United
States in exchange for a large portion of the money. If you respond, you might be
asked to send money to help pay a transfer fee or some other sort of fee.
- Counterfeit Cashier’s Check: You sell an item through an
auction site and then receive a cashier’s check for more than the amount agreed
upon and are asked to wire the extra money back to the sender. The problem is that
the cashier’s check is fake, yet so good that your local bank could not even
tell, and now that the check did not clear you are responsible to pay back your
bank the full amount of the check.
- Lottery Scam: You receive a notice that you have won a lottery
for which you did not purchase a ticket. When you call to collect you might be asked
to send a copy of your passport or the person on the other end might request your
bank account number to transfer you the money.
- Pyramid Schemes: You are invited to a club or group where in order
to join you must give money to someone in the club and then you recruit others to
join. In return you are to be rewarded by others giving to you. It is mathematically
impossible for everyone to come out ahead in this scheme and pyramid schemes
are illegal in New Mexico, so no matter how good they sound do not
participate in them.
What to do if you are the victim of an Internet fraud or scam:
- If you paid with a credit card or bankcard contact the company that issued your
card immediately to alert them of the problem.
- File a compliant at www.ifccfbi.gov. This
site is run by the FBI for the purpose of reducing Internet frauds and scams.
If you think your identity has been stolen immediately contact your creditors, banks,
credit bureau, local law enforcement agency and the Federal Trade Commission by
phone and in writing. Let them know that you have become the victim of identity
theft. Keep a record of all communication you make with these agencies, including
everything you send them, each person you talk to, and the date and time of all
communication. Make sure you fill out a local police report and retain a copy of
it.
View the current list of scam alerts »