AVOID PHONE FRAUD

Conmen and criminals are using the phone to rip people off

Conmen and criminals are using the phone, and especially internet phone systems, to rip people off. They want your private information - bank account details, credit card numbers and so on - and they want to trick you into calling them and handing it all over.

What is phone phishing?

Online criminals have long used fake emails and fake websites to trick people into giving away private information. Phone phishing takes this one step further and uses the telephone. Examples include:

You get a fakeemail telling you to call your bank and an (imposter's) voicemail system asks for your bank account number and PIN code.
A bogus website, masquerading as the real thing, tells you to ring a (fake) customer service number.
A text message tells you to call a given number to cancel an expensive service you did not subscribe to.
You get a fax that seems very urgent and you call the number on the fax.
Messages on your voicemail with implausible claims that you've won the lottery or a free holiday.

What are the risks?

Giving away private information leading to the theft of your identity.
Some conmen are using premium phone numbers so you are handing over cash to them simply by ringing them.
People find it harder to say no to a person on the phone than they do to delete a dodgy-looking email.
Criminals use stolen phones, pay phones or disposable internet phone accounts to set these scams up which makes them hard to trace.

How can I protect myself?

Treat all unsolicited communication, whether by email, phone, text message or fax, with scepticism.
Always use telephone numbers from trustworthy sources. For example, call the number on your bank statement or on the back of your credit card.
Stay up-to-date with the criminal's latest tricks and tactics so you can stay one step ahead of them.

Whether you are a seller or buyer online payments are necessary and usually safe but only if you choose the right method and take care to protect yourself.

What are the risks?

Money transfer is often used by fraudsters to solicit payment for goods that are never delivered and other scams.
Fake websites that collect credit card numbers which can then be used for fraud.
Bogus escrow services can be used to get payment for goods that are never delivered.

What are online payments?

There are several different schemes for online payment.

Online credit or debit card payment. They aregenerally accepted by businesses when they sell online. The card issuer or a third party such as WorldPayor SecureTrading verifies the card information and pays the seller after deducting a commission. For consumers, paying with a credit card gives them a degree of security against non-delivery or fraud but only for transactions worth more than 100.
Payments can be made by email using a service like PayPal. Money is transferred between two electronic accounts which are topped up using a credit card or bank transfer and accumulated funds can be moved to a bank account. These services often include buyer and seller protection; allow instant payments and give buyers a degree of comfort that the identity of a seller has been confirmed.
Other, less common forms of online payment include: SMS billing, dialler billing and pre-pay accounts.
Escrow isn’t a form of payment in itself but it is sometimes used for high-value online purchases and auctions. This is what happens:
The buyer transfers the funds for the goods to a third-party escrow service, such asEscrow.comorAuctionchex.com(always usea trusted escrow service which is recommended by an auction site).
The seller, confident that funds are available, ships the goods.
The buyer confirms receipt of the goods.
The escrow service releases the payment to the seller.
Money transfer, such as Western Union or MoneyGram, allows money to be sent to numerous agents around the world where recipients can collect the money in cash. While it has many legitimate uses, especially for sending money to friends and family, this form of payment is not recommended for online auction oronline shoppayments.
Internet banking. Most financial institutions offer their customers the ability to check their balances, transfer funds, and pay utility bills or friends and family online.

How to pay safely with a credit or debit card

Never enter a card number unless you can see a padlock in the web browser window’s frame (rather than in the web page itself) and the website address begins https://. You may not see this until you actually get to the page where you enter your credit card number.
Be wary of giving yourcard information to any site that you do not trust completely.

Using money transfer companies safely

Only send money to people you know personally or whose identity you can verify.
Use a reputable escrow service for high value transactions. Don’t send off cash unless you are absolutely sure you are going to get the goods.
If you feel under pressure to send money immediately or if you are coached in how to respond to the money transfer firms questions, back off and take stock. Don’t be rushed into anything.
Don’t be a victim of fraud – if it sounds too good to be true, it probably is.

Using electronic payment safely

Use a well-known firm such asNoChex, Moneybookers.comor PayPal.
Protect your password and never disclose it to anyone.
Use strong passwordsand use a separate, unique password for the payment service.
Beware of phishing – ignore potentially bogus emails and always type the website address for the service yourself, each time you use it.
Don’t transfer or receive money for someone else.

Receiving payments in a business

For more information about options for receiving payment in a small business see the DTI’selectronic paymentsite.