The Business of Identity Theft

Q: I use PayPal to accept credit cards for my onlinesophisticated attempts to steal personal information
collectibles business. I recently received an email thatthrough online means, Amazon, eBay, Dell Computer,
my PayPal account was going to expire in five daysand many others have been the brunt of many such
if I didn't click a link in the email and give them myscams in recent years.
PayPal account information. Being naturally paranoid IIdentity theft is what's known as a knowledge crime,
decided not to give this information and I'm happy towhich means that the criminal doesn't have to break
say that my PayPal account did not expire. Was thisinto your house to rob you blind. If you have a bank
a scam? -- Brenda A.account and a social security number, you are
A: Be thankful that your paranoia kicked in, Brenda,susceptible to identity theft.
because you were about to fall victim to the scamWhile most people are familiar with identity theft,
of the week, this one aimed at the 35 millionmost business men and women never think about it
merchants and individuals who use as their onlinehappening to them, at least on a professional level.
payment processor.Consider this: if a criminal can learn your business
The email you received was not from PayPal, butchecking account number or the number of your
from an Internet bad guy behind a forged emailcompany credit card, they can steal far more from
address using the domain. You should understand thatyour business than if they had simply knocked down
no reputable online company will ever ask you tothe door and carted off your desk.
provide your account information. Think about it.The Internet aside, most business and personal
They already have this information. Why would theyidentity theft is still the result of stolen wallets and
ask you to provide it.dumpster diving. You should guard your business
Since I use PayPal for several of my online ventures,records closely and be very careful what you throw
I, too, received the email in question. The email firstaway. Stop and think for a moment what a criminal
seeks to instill fear in you by saying that your PayPalmight find in the dumpster behind your office.
account will be closed if you do not provide personalThere's a good chance that dumpster has, at various
information. You are then directed to open antimes, contained scraps of paper with your social
attached executable file and enter your PayPalsecurity number, driver's license number, credit card
account information and other personal informationnumber, old ATM cards, telephone calling cards, and
that PayPal doesn't even require, including your socialother pieces of vital business information like bank
security number, checking and savings accountstatements, invoices, and purchase orders. A
information, driver's license number, and otherdumpster-diving thief could literally rob your business
personal information that can be used to clean outblind in a matter of hours.
your PayPal account and perhaps even steal yourHere are a few ways to protect yourself from
identity.business and personal identity theft.
If you're not familiar with PayPal, it is a hugely* Never give out your first name, last name, business
successful, web-based company (purchased by eBayname, email address, account passwords, credit card
in 2002) that many online retailers and eBay sellersnumbers, bank account information, PIN number,
use to accept electronic payments for everythingsocial security number, or driver's license number.
from newsletter subscriptions to consulting services* Change your online account passwords every 30
to just about any product for sale on eBay.days. Believe it or not, a hacker who steals your
The allure of PayPal is that it does not require thepersonal information can guess your online account
seller to have a bank merchant account throughpasswords in about two minutes. If your Charles
which to process credit cards. Anyone with aSchwab online account password is your birthday or
verifiable email address and bank account can usethe name of your first born or family pet, count on a
PayPal and the service can be implemented almosthacker cracking that code faster than you can say
immediately after registering.'Bill Gates.'
When someone places an order on a website that* Never provide personal information in response to
uses PayPal for online payments, that customer isan email or telephone call. Just because someone calls
directed to to complete the payment process using aand says they are from Dunn & Bradstreet and need
credit card or electronic check. The merchant canto confirm your business information does not mean
transfer the money collected in his PayPal account tothey are really from Dunn & Bradstreet.
his checking account any time he likes. Since many* Never give your business credit card number over
larger merchants make this transfer just once athe phone to place an order with someone who has
week or so, their PayPal accounts are ripe for thecalled you unsolicited. If you are interested in what
picking from those who have the cunning and lack ofthey are selling get their number, check out their
ethics required to gain access.company, then call them back to place the order.
The shear number of PayPal customers is one reasonIf you think that you have become the victim of
it has become a popular target of scam artists tryingidentity theft or think someone is trying to steal your
to steal personal information from individuals andidentity or personal information you should report
businesses alike.them immediately to the Federal Trade Commission.
Identify theft is on the rise. Thanks to the InternetYou will find more information on their website at For
stealing someone's identity has never been easier. Atmore information on what to do if identity theft
any given moment, there are any number of Internethappens to you visit
thieves using all manner of high tech wizardry to stealSo, if you ever receive an email from PayPal,
personal and business information from unsuspectingAmazon, eBay, or any other ecommerce website
souls, and many times they can gain access to thisasking you to update your account information by
information simply by asking the person to provide itemail you can pretty much bet the farm that it is a
through fraudulent means.scam.
The PayPal scam is just the latest in a long line ofIn business, as in life, a little paranoia is a good thing.