Online Identity Theft Scams

The internet has allowed consumers to make purchases, share information, and even get professional advice- all online. Unfortunately, the internet also makes it easier for the old-fashioned thief and pickpocket to steal your financial information and leave you penniless and your credit in shreds. Here are the top 5 online identity theft scams.
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Top 5 Online Identity Theft Scams

Each year, more people are using the Internet for banking, shopping and even invoicing. However, the Internet is also providing new opportunities for thieves, who find that stealing identities and financial information can  be as easy as sending an email. As a professional accountant, I often see the damage wrought in identity theft scams.

Here are the five most common online scams:

1. Contest Prize Notifications

Many people dream about winning the lottery, and that is exactly what this type of scammer counts on. This scam involves sending an email or creating a flash banner that announces that you have won a lot of money in a contest or lottery. Once you respond to the email or click on the banner, you will be given some type of explanation that you have to remit the taxes on the winnings or pay some kind of fee first. These scammers often go back to the well as often as they can, requesting that more fees or taxes be sent. Once you put the brakes on sending any more money, the scammers can drain your credit card or bank account, as they already have your information.

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