Online Fraud: Giving Your ID Away in One or More Clicks

You've probably heard enough about online fraud and identity theft to know the basics. It's a simple idea: someone tries to trick you into giving up personal information such as your Social Security number, credit card information, or driver's license number so they can use your identity or money to buy a Mercedes, take a trip to the Bahamas, or just get a new TV.

Fraud can occur online or offline. The best way to protect yourself is to understand how scams work and how to avoid them.

How to Avoid Online Fraud

Here are some good ways to decrease your risk of being ripped off:

• Be careful about giving out personal information. Criminals impersonating banks, charitable organizations, or shopping sites often send e-mail asking for "information updates" or "donations." If you receive e-mail asking for any personal or account information, don't respond, even if the message looks official. Don't even click links in the e-mail to submit information over the Web.
• Only use your personal information on Web sites that are well-known and secure. Listen to your good sense; if a Web site looks sketchy, don't take the risk. Remember that phishing sites try to look like real Web sites, and even try to create Web addresses that can fool people. You have to look closely to find the clues that tell you it's a fake site. One sign of a secure site is an unbroken lock icon at the bottom of your Web browser or next to the address bar. Another is to make sure the URL begins with https, rather than http.
• Make sure you have a phishing filter running on your computer to alert you if a Web site is questionable. Some Web browsers have a filter you can simply turn on. If yours doesn't, you can download a phishing filter as part of the Windows Live toolbar, or from eBay or other reputable sites.
• If you're using your laptop at a coffee shop or someplace that offers free wireless networking, don't do online shopping or banking over an unsecured connection that doesn't require a password to log on. A nearby thief could pick up your information, even from outside the building.
• Keep your operating system, anti-virus and anti-spyware software up to date. These programs can help stop hackers from entering your computer, recording your personal information and causing other problems.
• Check your credit card and bank account statements regularly. The sooner you spot anything strange and report it, the better for you in the long run.

What If Your Identity is Stolen?

If you ever suspect that someone has stolen your identity, ask an adult to help. You'll have to report the theft to your credit card company and contact the credit bureaus to make sure your credit rating isn't damaged. That might not sound important right now, but a good credit rating is what helps you to rent your first apartment or buy a car someday. You may need to talk to the police, too. With so many things to do, someone older can be very helpful.

Also, talk to your parents about what you've learned here. They may not know much about online fraud and your knowledge could help them avoid it.