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MERCHANT SERVICES: ONLINE FRAUD PREVENTION
The modern world of technology provides online users the opportunity to visit websites, communicate with others and shop without the need to leave your computer. However, with the conveniences comes common sense concerns that we all need to be aware of. With the increased usage of online sources, have come threats such as identity theft, credit card fraud and other online fraud. However, with common sense usage of online sources and preventive measures, you should be able to be safe online.

Identity Theft
One of the biggest threats of using online technology, including online shopping, is Identity Theft. Identity Theft occurs when an online visitor leaves personal information on a website. This can happen when shopping or signing up for a product or service. The information can include name, address, email address, date of birth and social security number. Depending on the information that is left on the website, criminals that illegally access the site can possibly use the information to assume your identity for loans, credit cards and other illegal uses.


Online Scams
Today online scams can occur in many different methods. One of the more popular scams involves people selling items on online sites. The way the scam works is that a large item such as a car is placed online for sale and a criminal responds saying that they will send a cashiers check to the seller, and arranges for the transfer. When the check arrives it is for too much money and the criminal apologizes and asks that the over payment be wired back to them. The seller does it, then after the original check is deposited, it is found to be a fraudulent check and bounces. Leaving the seller out the money they wired to the criminal. This is just one of many online scams.


Email scams
The e-mail scam has been around for many years and has taken different forms. One of the most famous scams is the “Nigerian Scam”, where an email is sent saying that they are royalty in Nigeria and that they have funds in a U.S. account that they need to access. However, they claim that they are unable to get these funds and need help. The recipient are asked to wire funds to the foreign sender and of course are not able to get the money out of the fictitious account. The e-mail scam has taken many different forms, but are essentially the same type of scam.



Phishing
Phishing has become of the more recent online frauds that have surfaced. The way phishing works is that an e-mail is sent from a notable company saying that there is a problem with the recipients account. They are asked to go to a specific URL and confirm the information. When the recipient goes to the website, it is a spoof site which looks legitimate, but goes to a fake site. If the recipient puts in their information, it does not go to the company, but instead goes to a criminal who can use the personal information for identity theft.


    Credit Card Fraud
    With the increase in the amount of online shopping being done today, one of the biggest fraudulent concerns is credit card fraud. There are several ways that shoppers are at risk of being a victim of credit card fraud. They include sending information through insecure connections, sending information to fake websites, listing personal and credit card information on insecure forms and having credit card information stolen and compromised at the merchants servers. One way to protect yourself is to only use well-known websites for buying merchandise and ensure that if you are putting your personal financial information on a website, it is a secure connection.



    Prevention Resources
    The best way to prevent being a victim of online fraud is by using common sense. If an offer sounds too good to be true, generally it is. Also, be cautious of providing any personal identification data online. Legitimate companies will not randomly ask for information from clients. If you have a doubt about an e-mail you received from a company, give them a call to confirm that it is legitimate. And, if you are transmitting personal information online, make sure that it is a secure connection. These are simple tips, but they will help keep your personal financial information safe and secure.

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