Scams and SchemesScams and Schemes

CAUTION!CAUTION!

BE AWARE!BE AWARE!

WATCH OUT!WATCH OUT!

Today’s ObjectiveToday’s Objective

• You will be able to:You will be able to:– understand what understand what

identity theft is and identity theft is and why it is important why it is important to guard against itto guard against it

– learn to recognize learn to recognize strategies that strategies that scam artists use to scam artists use to access private access private informationinformation

– and learn how to and learn how to guard against guard against phishing and phishing and identity theftidentity theft

Warm Up QuestionsWarm Up Questions

• Do you know someone who has been Do you know someone who has been scammed? scammed? – What happened?What happened?

Warm Up Questions #2Warm Up Questions #2

• What is the purpose of a scam? What is the purpose of a scam?

• What tricks do people use to carry What tricks do people use to carry out a scam?out a scam?

Warm Up Questions #3Warm Up Questions #3

• Can people get scammed on the Can people get scammed on the Internet? Internet?

• How?How?

In this lesson you will learnIn this lesson you will learn

• About a variety of online scams, About a variety of online scams, including which kinds of information including which kinds of information scammers look for, and how that scammers look for, and how that information can be used. information can be used.

• And you will also learn how to protect And you will also learn how to protect yourselves against online scams.yourselves against online scams.

What Is Identity Theft?What Is Identity Theft?

Identity TheftIdentity Theft

• A type of crime in which your private A type of crime in which your private information is stolen and used for information is stolen and used for criminal activitycriminal activity

You need to understandYou need to understand

• People who scam others online don’t always People who scam others online don’t always have to get money from them directly. have to get money from them directly.

• Instead, they use a variety of strategies to Instead, they use a variety of strategies to trick people into giving out private trick people into giving out private information. They then use this information information. They then use this information to access their bank and credit card to access their bank and credit card accounts or other personal accounts. They accounts or other personal accounts. They can even “re-create” someone’s identity and can even “re-create” someone’s identity and produce false documents, such as Social produce false documents, such as Social Security cards, credit cards, or drivers’ Security cards, credit cards, or drivers’ licenses in someone else’s name.licenses in someone else’s name.

Can You Guess?Can You Guess?

• What kinds of private information What kinds of private information identity thieves might look for?identity thieves might look for?

Private Information such as:Private Information such as:

• Full nameFull name• Date of birth and where you were bornDate of birth and where you were born• Current and previous addresses and Current and previous addresses and • phone numbersphone numbers• Driver’s license or passport numberDriver’s license or passport number• Account numbers and the companies Account numbers and the companies • where you hold accounts (e.g., Amazon, PayPal, where you hold accounts (e.g., Amazon, PayPal,

etc.)etc.)• PasswordsPasswords• Social Security number Social Security number

Who can tell me what Who can tell me what VulnerableVulnerable means? means?

VulnerableVulnerable

• You are in a position that makes it You are in a position that makes it easier for you to be harmed or easier for you to be harmed or attackedattacked

Anyone is VulnerableAnyone is Vulnerable

• Anyone is vulnerable to an online Anyone is vulnerable to an online scam. scam.

• Although teens might not think Although teens might not think they’re at risk, there are a few they’re at risk, there are a few important reasons why they are important reasons why they are vulnerable to identity theft – and why vulnerable to identity theft – and why it mattersit matters

WhyWhy

• Identity thieves look for “clean” Social Identity thieves look for “clean” Social Security numbers that haven’t yet been Security numbers that haven’t yet been used to get credit. Therefore, They target used to get credit. Therefore, They target teens and kids, who often have Social teens and kids, who often have Social Security numbers that have no credit history Security numbers that have no credit history yet. yet.

• Identity thieves might sell or use these Identity thieves might sell or use these numbers, which would allow someone else numbers, which would allow someone else to get a credit card or loan and build up debt to get a credit card or loan and build up debt under your name. under your name.

Identity Theft can ruin YOU!Identity Theft can ruin YOU!

• Being a victim of identity theft can Being a victim of identity theft can ruin your financial future and your ruin your financial future and your ability to obtain loans and purchase ability to obtain loans and purchase things. For example, it could affect things. For example, it could affect your ability to get a student loan for your ability to get a student loan for college or a loan to buy a car.college or a loan to buy a car.

You could put your parents at You could put your parents at riskrisk

• In addition, if you use your parents’ In addition, if you use your parents’ accounts and credit cards online, or accounts and credit cards online, or fill out forms with your parents’ fill out forms with your parents’ information, you are sharing information, you are sharing information that could potentially put information that could potentially put your parents’ identities at risk. your parents’ identities at risk.

Could be time consuming and Could be time consuming and expensiveexpensive

• It can take months, even years, to It can take months, even years, to recover your identity if it’s stolen. recover your identity if it’s stolen. Cleaning up such a mess takes a lot Cleaning up such a mess takes a lot of time and energy, and it can also of time and energy, and it can also be expensive.be expensive.

How do you think identity How do you think identity thieves might try to get your thieves might try to get your information?information?

PhishingPhishing

• When people send you phony emails, When people send you phony emails, pop-up messages, social media pop-up messages, social media messages, texts, calls, or links to messages, texts, calls, or links to fake websites in order to hook you fake websites in order to hook you into giving out your personal and into giving out your personal and financial informationfinancial information

Best way to avoid PhishingBest way to avoid Phishing

• The best way to avoid phishing scams The best way to avoid phishing scams is to be skeptical about any online is to be skeptical about any online request for personal information. It’s request for personal information. It’s also good to be skeptical of online also good to be skeptical of online messages or posts from friends that messages or posts from friends that seem out of character for them, which seem out of character for them, which is a warning sign that your accounts is a warning sign that your accounts have been hacked. have been hacked.

Features of Phishing EmailFeatures of Phishing Email

• Need to verify account information:Need to verify account information: Phony emails will try to trick you into Phony emails will try to trick you into giving up account information, passwords, giving up account information, passwords, or clicking on a phishing link, where you or clicking on a phishing link, where you fill out information that identity thieves fill out information that identity thieves can collect and use. Usually what they’re can collect and use. Usually what they’re asking for doesn’t make sense if you think asking for doesn’t make sense if you think about it, because they should already about it, because they should already have that information!have that information!

Features of Phishing EmailFeatures of Phishing Email

• Sense of urgency:Sense of urgency: When the When the message says you only have a message says you only have a limited time to respond, it is often limited time to respond, it is often the sign of a scamthe sign of a scam

Features of Phishing EmailFeatures of Phishing Email

• Spelling errors:Spelling errors: Scam emails often Scam emails often include spelling and grammatical include spelling and grammatical errors. A real company would not errors. A real company would not send out messages containing such send out messages containing such errors.errors.

Features of Phishing EmailFeatures of Phishing Email

• Account is in trouble:Account is in trouble: Identity Identity thieves try to make you worry that thieves try to make you worry that something is wrong with your something is wrong with your account, so you will feel you must account, so you will feel you must immediately respond to the email to immediately respond to the email to fix it. fix it.

Features of Phishing EmailFeatures of Phishing Email

• Link in email or attachment:Link in email or attachment: Phishing Phishing emails often have a link within the email emails often have a link within the email or an attachment that you are urged to or an attachment that you are urged to click on. This link can lead you to a site or click on. This link can lead you to a site or form where you (unknowingly) give your form where you (unknowingly) give your information to criminals. You should never information to criminals. You should never respond to or click on links in such emails. respond to or click on links in such emails. Instead, go directly to the main website, Instead, go directly to the main website, and from there check your account.and from there check your account.

Features of Phishing EmailFeatures of Phishing Email

• Too good to be true:Too good to be true: Scam emails Scam emails often offer things that are too good often offer things that are too good to be true, like the easy chance to to be true, like the easy chance to win free money or prizes.win free money or prizes.

Features of Phishing EmailFeatures of Phishing Email

• Generic greeting:Generic greeting: You might see a You might see a generic greeting that does not generic greeting that does not personally address you. Reputable personally address you. Reputable companies send emails where they companies send emails where they address their customers by name. address their customers by name.

Spotting Scams Student Spotting Scams Student HandoutHandout

• Mr. Taylor will pass out the handoutsMr. Taylor will pass out the handouts

• Remember-phishing emails can be Remember-phishing emails can be very convincing, and some may not very convincing, and some may not contain many of the clues you just contain many of the clues you just learned about. So it’s smart to learned about. So it’s smart to distrust any email that asks you to distrust any email that asks you to provide private information.provide private information.

• If you ever encounter something If you ever encounter something online that you believe might be a online that you believe might be a phishing scam, you should observe phishing scam, you should observe the following rules:the following rules:

Rule #1Rule #1

Avoid opening the message or email in Avoid opening the message or email in the first placethe first place

Rule #2Rule #2

• Don’t click on any links or download Don’t click on any links or download any attachments. They might contain any attachments. They might contain viruses or spyware.viruses or spyware.

Rule #3Rule #3

• Don’t replyDon’t reply

Rule #4Rule #4

• Mark as “junk mail” or “spam” for Mark as “junk mail” or “spam” for your email provider, or report it to your email provider, or report it to your social network site.your social network site.

Rule #5Rule #5

• If you are concerned about an If you are concerned about an account you have with a company, account you have with a company, contact its customer service by contact its customer service by phone. phone.

• Make sure you verify the company’s Make sure you verify the company’s contact information elsewhere online contact information elsewhere online first. first.