How Can Email Scams Ruin Your Financial Stability?

Identity theft is capable of causing personal and financial misery.  The threats have increased due to advances in technology. Now, thieves can remotely reach and play with your stolen identity. They only need to fire off emails to filch your personal information.

Giant software maker Microsoft warns that one of these could turn out to be an email identity theft scam, more popularly known as phishing. These unwanted messages are meant to “fish for your information,” hence the term.

Will one email scam really pose a threat to your financial stability? Experts said yes, adding that one wrong click and strings of disaster can happen next. But with the correct knowledge and appropriate measures in place you can stop ID theft from rearing its ugly head.

When ‘bitten’ by a phishing scam, expect the worst, according to The San Jose Mercury News. “By stealing … personal facts, identity thieves can withdraw money from the victim’s bank accounts, hijack their … tax refunds and cause other financial havoc.”

But the more aggressive crooks are capable of inflicting far-reaching damages. They will not hesitate in using the compromised identity to file bankruptcies, cause loan defaults and commit crimes. Unfortunately, all the personal devastation will be incurred by the ID theft victim, according to Forbes.

There are protections available for you. The best identity theft protection is by pre-emptive strikes. You’ll enjoy a solid defense with a secured PC. Install security software on the machine, limit it for your private use if possible and use strong passwords to gain entry on the device, your email and social media accounts. For maximum safety, change these sensitive details every month, per the advice of The Wall Street Journal.

Microsoft recommends careful study of the enemy, which is sent out to look like a regular email. You can unmask the scam by looking for the following giveaways:

• Alarmist messages and threats of account closures.
• Promises of money for little or no effort.
• Deals that sound too good to be true.
• Requests to donate to a charitable organization after a disaster that has been in the news.
• Bad grammar and misspellings.

Typical selling points of email scams. To trick you into surrendering personal information, swindlers package their email messages to look authentic and reputable. They use known company names to get your guards down or try to bait you into a conditioned response by delivering exciting news, for instance a lottery win.

Email scams also come in the form of false virus alerts, known to Internet security experts as ‘scarewares’. Microsoft strongly suggests ignoring such notices. To be sure, trust only the alert messages coming from the anti-virus installed on your computer.

Immediate steps must be taken in case of identity breach. Don’t slip into panic mode. While shock may prevail for awhile, once you recover contact the concerned authorities and various credit bureaus to inform them of the situation. Then you can make a request for free copies of your credit report that you should promptly review. File a police report and keep a copy of the incident report for later reference.

Most importantly, freeze or cancel all accounts that you believe are infected. This will stop any further attempts by thieves to do business using your name. Likewise, advise your credit providers to put on record that the accounts were closed at your request. This emphasis will reduce the subsequent impact on your credit standing.

You need to remain vigilant. Remember that credit monitoring to prevent scams begs for your attention. This is done by reviewing the reports obtained from credit bureaus. Auditing past and present account statements is also a must. Look for errors and inconsistencies. By spotting them, you’ll be alerted early of any fraudulent activities using your accounts.

Watch out too for fraud alerts. The normal course is for creditors to activate this safeguard when ID theft incidents are reported. But account owners can make a request for an automatic alarm to check for unsanctioned activities. This instrument though is not foolproof, The Wall Street Journal said, adding “this may only be a speed bump for a practiced thief, so don’t consider it a guarantee,” added the publication.

It is true that email scams can potentially ruin a person’s finances. Having unwarranted dents on credit credentials, personal reputation and even criminal records, experts said, can clip one’s ability to attain financial ability. To keep this from happening to you, what precautionary measures are you taking to shield your identity from criminals?

Amy Johnson is an active blogger who is fond of sharing interesting finance related articles to encourage people to manage and protect their finances.

Tags: Identity theft, Internet security

Category: Consumer Complaints