Do You Commit the ‘Seven Deadly Online Sins’?

February 7th, 2011 Ronald Unruh Leave a comment Go to comments

If you’re not up to date on your Internet theology, it’s time to learn about the so-called “Seven Deadly Sins” of online behavior that could make you and your finances susceptible to identity theft. So before you accept the next offer for some fantastic, limited-time offer, make sure you’re not giving your sensitive information to a scammer.

How Online Scammers Take Advantage of Us

Even though federal law protects consumers from identity thieves, polls of bankruptcy filers generally find that a small percentage cite “identity theft” as one of the reasons they had to seek bankruptcy protection. And even when it doesn’t lead to the bankruptcy court, identity theft can cause serious headaches and even money loss.

So here are some weaknesses to be careful not to let online scammers exploit (adapted from WalletPop.com):

Need for sex. While it may be flattering to see that an attractive person has contacted us via some social network, proceed with caution when you see an alluring photo and an unfamiliar name. Many scams count on our basic physical need for sex to get us to make boneheaded financial decisions or simply expose our finances or personal data to unnecessary risk.
Greed. Yes, we all know that the Nigerian prince scams will rip us off – but we’re still falling for them (or scams similar to them). Why? Because, especially when the economy is tough, none of us would mind making a little extra money. Especially if it doesn’t require much work. But use your head: if people really had this much money, why would they want to give it away?
Vanity. In advertising, this is sometimes called the “need for affiliation” – we want to be accepted by others or shown that we are high-status individuals. But remember that companies that tell you “you’ve been chosen” or that you need to “act now” to get a certain deal are exaggerating at best. Strangers don’t choose strangers for great deals.
Trust & credibility. The scary truth is that sometimes scammers use well-known, well-respected brand names to give legs to their scam. But always be wary of links that come through your email and deals that seem too good to be true. Before entering any kind of personal information online, make sure you’ve typed in the company’s URL yourself and you see notification that the web site is secure.
Laziness. Before you do business with an unfamiliar company, do a quick Google search for customer reviews and/or scams associated with that company. If you get an email from your “bank” or “credit card company,” make sure to call the company to verify before following the directions in the email.
Compassion. It’s a good trait, but it can land you in financial trouble if you extend it to strangers. Do a background check for charities before donating, and be very wary of “friends” who claim to be stranded abroad in need of money – there’s a reason you didn’t know that person was traveling: it’s probably a scam.
Immediacy. If some online seller pushes hard to commit to a sale, back away. Since the apocalypse hasn’t hit yet, most essential items can be bought after you’ve had time to think about your purchase. Don’t let someone talk you into forking over money before you’ve done your homework.

Financial Freedom Expert