How to Recognize Internet Phishing and Lottery Scams

Internet scams are on the rise, and their sole purpose is to separate you from your money or steal your identity. In some cases, Internet scam artists are more interested in stealing your identity than your money. Knowledge is vital in recognizing Internet scams. The more you know how they work, the better armed you are against becoming a victim of their costly traps.

Phishing scams are used by Internet scam artists to get you to reveal personal information like bank account numbers, a social security number, Internet login and password information, credit card account numbers, etc. Phishing scams come by way of fraudulent e-mails that work to first lure you into a false sense of security by using familiar company names or logos of legitimate or well-known companies, banks or other institutions. A typical phishing e-mail will always look convincingly legitimate - maybe even containing the actual name of a company employee in the "from" line or within the text of the message. You will always be asked at some point to either "verify" or provide personal or valuable information. The best defense against Internet phishing scams is to remember that this is not how legitimate companies work. Your bank or credit union or credit card company or any other financial institution will never ask you for verification or provision of sensitive information through a non-secure method like an e-mail.

Lottery scams are another of many Internet scams making the rounds, and there are some variations. However, like phishing scams, lottery scams are meant to separate you from your money and to steal your identity. This Internet scam comes in the form of a legitimate-looking e-mail congratulating you on winning a sum of money - usually a large sum - in a lottery. In whatever variety this Internet scam comes, there will be a request for money, either for purposes of paying the taxes on the winnings, or to prove your trustworthiness, etc. In some lottery scams, the Internet scam artists will even mail you a check on an account of an actual well-known bank. You will be asked to deposit the check and mail the scam artists a portion of the proceeds for taxes or some other fee. The catch? The check is a counterfeit, and if you cash or deposit the check, you'll be responsible for any money you spend from the check. The bottom line when it comes to lottery scams is that if you haven't purchased a lottery ticket, you haven't won a lottery - no exceptions to the rule.

As Internet scams increase and become more sophisticated, so do the chances you'll be a potential victim at some point. That's why you should always think twice before you provide any personal or otherwise valuable information to anyone who contacts you through the Internet.