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