The old-fashioned con man hasn't disappeared, he's just gone phishing. Phishing scams where people receive an apparently legitimate email asking for personal information allow con men to troll for marks without ever leaving their computers. That personal information can allow phishers to steal your identity, run up charge accounts, open credit cards in your name, tap into your bank account, take out loans, and create all kinds of financial mayhem -- all without your knowledge.
According to a new report just released by Consumer Reports, consumers have a 1-in-6-chance of becoming a victim of internet identity theft. "People have fallen for non-computer cons for centuries; scammers are now just using newer methods," said Jeff Fox, a Consumer Reports technology editor. In the study, 1 in 13 households, or 1.5 million consumers, fell prey to phishing scams, providing them with personal data. As a result, 14% lost money. Consumer Reports estimates that phishing scams cost consumers $2 billion over the last two years.
Experts say the problem is that the average person who uses a computer isn't particularly tech-savvy. People have a hard time telling legitimate emails from the scams. Phishers spend big bucks to create slick, look-alike websites that fool the unwary. Many online scams are run by overseas organized crime rings, said Steven Titch, a Los Angeles telecommunications policy analyst at the non-profit Reason Foundation.
"Never answer an email that asks for personal info," warns Titch. "Most legitimate organizations won't do that." Other tips Titch suggests for avoiding phishing scams and computer identity theft: Don't respond to suspicious emails and never click on attachments from someone you don't know.
On Friday: More tips for avoiding computer identity theft.
-LegalPro
