Top 10 E-Mail Scams
by Joshua Fruhlinger, posted Jul 16th 2008 at 12:03AM
You've heard about them, you've seen them, perhaps you've been had by one: e-mail scams. Millions of people are cheated over e-mail every year. In 2005 alone, consumers lost nearly $14 million dollars to Internet scams. Sadly, that number is on the rise as crooks come up with new methods to get at your money and information. We capture five of the worst on the following pages.
Usually, scammers attempt to trick you into filling out forms on rogue sites. Rogue sites usually look legitimate (some are even replicas of legitimate sites you trust), but they are set up to spread a virus, collect names for spammers or grab your personal information. Other scams try to get you to reply to e-mails requesting your personal data like passwords and bank account numbers. Once you've given up the info, criminals can siphon your cash, make purchases and get out before you even have a chance to track them down.
We talked to Carol McKay of the National Consumers League to get some advice, which we've included here, on handling some of the bigger scams. She offers up some tips you literally can't afford to miss, and we've come up with a few of our own that should keep you safe from persistent online scammers. Read on, and stay safe....
Scam #1: Investment Pump & Dump
The Come-On
Everyone wants to be in on the ground floor when it comes to investing, so it's no surprise that millions of people go for this one: You receive an e-mail from someone claiming to be a power broker containing a hot tip on a penny stock that promises to double, even triple, in short time. So you go for it, only to see it tumble within hours. One such e-mail we received just this week looks like this:
Subject: Your 221.43% - breaking results
DarkLord: DWPI Hits The Street, Price Climbs 221.43%
Distributed Power Inc.
Symbol: DPWI Price: $0.40 (+0.31)
News hits the streets!!! DPWI acquires huge oil reserves, drills deeper on current wells increasing production, and now opens Asian division. Investors go nuts today and price rockets 221.43%. Act fast, read the news and get on DPWI first thing Tuesday!
The Scam
Turns out the people who send you the e-mail in the first place are waiting for a few people like you to get the stock up so they can get out before you even have a chance.
What You Can Do
Carol says: "Legitimate investments are risky, and legitimate brokers will admit that to customers. Be especially wary of offers that arrive via e-mail, offshore investments or commodities, and high-pressure sales tactics. And, if you can't afford to lose all your money, don't invest any of it."
Scam #2: Cancel This Order!
The Come-On
So you're surfing the 'Net one night and you receive an e-mail confirming your order. You think, "What order?"
The Scam
You follow the "cancel" link in the e-mail, thinking you're protecting your credit card, when all you're doing is giving a rogue site your personal data.
What You Can Do
Carol says: "These e-mails should be deleted immediately upon receipt. It's simple: If you didn't order something but you receive an e-mail asking you to confirm the 'order,' call the company that appears to be sending the message, and get to the bottom of [the situation] over the phone. The customer service representative will likely tell you they don't have any record of this activity, and you'll know for sure that you just avoided the bait."
You can also call your credit card company to see if a random charge actually appeared. Review with them purchases you have made, and if anything stands out, immediately dispute the charge. Most credit card companies will work with you to first freeze the card and then trace the charge.
The Come-OnAfter all those MegaBall tickets and EasyScratches, you finally get that e-mail -- you've won millions! The ScamOf course, in order to get the money, you'll need to submit your bank account and credit card information because there's a handling charge. You'll be charged, usually for the handling charges of $75-100 and never get the winnings.What You Can DoCarols says: "An e-mail claiming that it's your lucky day most likely actually means the exact opposite. You should never pay to play. It's illegal for a company to require you to buy something or pay a fee in order to win or claim a prize. And real winners pay taxes to the government, not the company purporting to be giving you the 'prize.'"
Scam #4: Nigerian Letter Scam
The Come-On
The "419 letter," named for the Nigerian penal code that addresses crime schemes, shows up as an e-mail from someone looking for your help in a seemingly desperate yet worthy cause, usually someone looking to give money away in his or her final days. An excerpt from a particularly desperate one follows:
"...before my late husband died he was a major oil tycoon,and deposited the sum of 25 million dollars ( Twenty five million dollars) in one of the Spanish bank in Madrid,Spain. some years ago,thats all i have left now,i need you to collect this funds and distribute it according to the God wishes and for charity . so that when i die my soul can rest in peace.the funds will be entirely in hands and management. i hope God gives you the wisdom to touch very many lives,that is my main concern. 20% of this money will be for your time and effort,while 80% goes to charity. So if you know you can assist me then forward to me immediately the following informations.
1) NAMES AND ADDRESS
2) PHONE AND FAX NUMBERS
3) YOUR NATIONALITY
4) OCCUPATION
5) AGE and your Marital Startus.
Please reply back to me on this email: jennydiaz@mail.vu."
The Scam
In exchange for your personal information like bank accounts and routing numbers, the sender promises a large lump sum for your help. You never get the money, of course, and the e-mail sender is across the world impersonating you, creating an alternate version of you with credit cards and bank accounts until your credit goes so bad that you will spend years trying to fix it.
You will even often get official-looking documents to get you to pony up for shipping and documentation fees, making the whole thing look legitimate.
What You Can Do
Carols says: "Free money from Nigeria offered in an e-mail from a princess in distress or a diplomatic prisoner? Fat chance. These scams have been plaguing consumers for years, with variations on the dramatic set-up, but the bottom line is the same: Getting involved with these scams can be more than just a waste of your time. They can also be dangerous and life-threatening."
For more information, 419eater.com has a great FAQ that even documents some of the cases as well as some citizens fighting back against the scammers. Warning: Some of these accounts are for mature audiences only.
Scam #5: Gone Phishing
The Come-On
This scam usually comes in the form of an e-mail warning you that you need to update your bank (or PayPal) account for security purposes.
The Scam
The link in the e-mail takes you to what looks like your bank's real Web site, but is actually a rogue site designed to capture your login information. Once the criminals have this information, they can go and log into your actual account and begin siphoning money, information, and even try to use the same log-in information for your other accounts, as most people use the same password across various sites.
What You Can Do
Carol says: "Crooks have come up with some pretty ingenious ways of disguising themselves as a trusted institution or company in order to get consumers' personal information. The key to avoiding ID theft via being phished is to remember that YOU are in control of your personal data. Keep it secure, and don't give it to someone who prompts you to unless you're confident that they need it for legitimate purposes."
Scam #6: US Bombs Iran
The Come-On:
You get an e-mail announcing that the United States has invaded Iran, or some other sensational news headline, with a link to the news story.
The Scam:
The Web site is designed to look like a real news page with a video player and a banner, but they're fakes. Once you click them to get the story, you're in danger of downloading malware known as the 'Storm Worm,' a backdoor Trojan. Beware of anything named "iran_occupation.exe."
What You Can Do:
Don't rely on anonymous e-mails to get your news. If you see a headline and you absolutely must find out if it's true, then go to a trusted news site rather than click on the link. If you do fall for it, make sure your antivirus and malware protections are up-to-date.
Scam #7: Make Money From Home!
The Come-On:
You get an e-mail offering you a job that sounds like an easy way to make a quick buck. All you have to do is cash a check, keep a percentage for yourself, and wire the rest back.
The Scam:
Like the Nigerian fraud, the funds you're getting are fake, even though they might look legit. A few days after you deposit the check and wire the rest back, the check will be discovered as phony and you'll have paid the scammers from your own pocket.
What You Can Do:
Don't be fooled by personal job offers. Many times, scammers find victims through online ads and try to threaten legal action if you don't comply. As always, if it's too good to be true, it probably is.
Scam #8: Phishing for Stimulus
The Come-On:
You're getting a tax refund from the IRS. Woohoo, free money!
The Scam:
The e-mail, which comes from "tax-refunds@irs.gov," provides a link for you to follow to fill out a special form with personal and financial information. In reality, the IRS will never ask for this info unsolicited, and you don't have to fill out anything more than your normal tax forms to get the refund.
What You Can Do:
Delete the message. If you feel like maybe you deserve the refund and have questions about it, contact the IRS at 1-800-829-1040 . They'll tell you all you need to know.
You're getting a tax refund from the IRS. Woohoo, free money!The e-mail, which comes from "tax-refunds@irs.gov," provides a link for you to follow to fill out a special form with personal and financial information. In reality, the IRS will never ask for this info unsolicited, and you don't have to fill out anything more than your normal tax forms to get the refund. Delete the message. If you feel like maybe you deserve the refund and have questions about it, at . They'll tell you all you need to know.
Scam #9: Donate To Scammers!
The Come-On:
People in China and Myanmar need your charity.
The Scam:
Preying upon people's guilt after the disasters that killed thousands and affected millions, e-mails ask for charitable donations. Many times, the e-mails will warn against spam e-mails and unsecure transactions before taking you to a legit-looking page to donate directly to defrauders.
What You Can Do:
Don't give in to unsolicited charity pleas. If you're going to donate over the Internet, visit the charity of your choice directly, by typing the Web site address directly into your browser's address field.
Scam #10: Pay Or DieThe Come-On:A
hitman has been hired to
kill you but there's a chance he'll let you live. The Scam:An e-mail from the killer says you'll survive if you pay him off immediately. Naturally, the scammer hopes you'll panic and send the money, but there's no immediate threat. Often, they'll include some generic personal details that are easily found on the 'Net to heighten your fear. What You Can Do:Keep cool, even if the threat seems credible. Ignoring it is the best idea, and if you feel the need to, contact the authorities. After all, a death threat is a death threat is a death threat.
