The Business of Identity Theft

Q: I use PayPal to accept credit cards for mybrunt of many such scams in recent
online collectibles business. I recently received anyears.Identity theft is what's known as a
email that my PayPal account was going to expireknowledge crime, which means that the criminal
in five days if I didn't click a link in the email anddoesn't have to break into your house to rob you
give them my PayPal account information. Beingblind. If you have a bank account and a social
naturally paranoid I decided not to give thissecurity number, you are susceptible to identity
information and I'm happy to say that my PayPaltheft.While most people are familiar with identity
account did not expire. Was this a scam?theft, most business men and women never think
-- Brenda A.A: Be thankful that your paranoiaabout it happening to them, at least on a
kicked in, Brenda, because you were about to fallprofessional level. Consider this: if a criminal can
victim to the scam of the week, this one aimedlearn your business checking account number or
at the 35 million merchants and individuals who usethe number of your company credit card, they
as their online payment processor.The email youcan steal far more from your business than if
received was not from PayPal, but from anthey had simply knocked down the door and
Internet bad guy behind a forged email addresscarted off your desk.The Internet aside, most
using the domain. You should understand that nobusiness and personal identity theft is still the
reputable online company will ever ask you toresult of stolen wallets and dumpster diving. You
provide your account information. Think about it.should guard your business records closely and be
They already have this information. Why wouldvery careful what you throw away. Stop and
they ask you to provide it.Since I use PayPal forthink for a moment what a criminal might find in
several of my online ventures, I, too, receivedthe dumpster behind your office.There's a good
the email in question. The email first seeks to instillchance that dumpster has, at various times,
fear in you by saying that your PayPal account willcontained scraps of paper with your social
be closed if you do not provide personalsecurity number, driver's license number, credit
information. You are then directed to open ancard number, old ATM cards, telephone calling
attached executable file and enter your PayPalcards, and other pieces of vital business
account information and other personalinformation like bank statements, invoices, and
information that PayPal doesn't even require,purchase orders. A dumpster-diving thief could
including your social security number, checking andliterally rob your business blind in a matter of
savings account information, driver's licensehours.Here are a few ways to protect yourself
number, and other personal information that canfrom business and personal identity theft.* Never
be used to clean out your PayPal account andgive out your first name, last name, business
perhaps even steal your identity.If you're notname, email address, account passwords, credit
familiar with PayPal, it is a hugely successful,card numbers, bank account information, PIN
web-based company (purchased by eBay in 2002)number, social security number, or driver's license
that many online retailers and eBay sellers use tonumber.* Change your online account passwords
accept electronic payments for everything fromevery 30 days. Believe it or not, a hacker who
newsletter subscriptions to consulting services tosteals your personal information can guess your
just about any product for sale on eBay.The allureonline account passwords in about two minutes. If
of PayPal is that it does not require the seller toyour Charles Schwab online account password is
have a bank merchant account through which toyour birthday or the name of your first born or
process credit cards. Anyone with a verifiablefamily pet, count on a hacker cracking that code
email address and bank account can use PayPalfaster than you can say 'Bill Gates.'* Never
and the service can be implemented almostprovide personal information in response to an
immediately after registering.When someoneemail or telephone call. Just because someone calls
places an order on a website that uses PayPal forand says they are from Dunn & Bradstreet and
online payments, that customer is directed to toneed to confirm your business information does
complete the payment process using a credit cardnot mean they are really from Dunn &
or electronic check. The merchant can transferBradstreet.* Never give your business credit card
the money collected in his PayPal account to hisnumber over the phone to place an order with
checking account any time he likes. Since manysomeone who has called you unsolicited. If you
larger merchants make this transfer just once aare interested in what they are selling get their
week or so, their PayPal accounts are ripe for thenumber, check out their company, then call them
picking from those who have the cunning and lackback to place the order.If you think that you
of ethics required to gain access.The shearhave become the victim of identity theft or think
number of PayPal customers is one reason it hassomeone is trying to steal your identity or
become a popular target of scam artists trying topersonal information you should report them
steal personal information from individuals andimmediately to the Federal Trade Commission.
businesses alike.Identify theft is on the rise.You will find more information on their website at
Thanks to the Internet stealing someone's identityFor more information on what to do if identity
has never been easier. At any given moment,theft happens to you visit if you ever receive an
there are any number of Internet thieves using allemail from PayPal, Amazon, eBay, or any other
manner of high tech wizardry to steal personalecommerce website asking you to update your
and business information from unsuspecting souls,account information by email you can pretty
and many times they can gain access to thismuch bet the farm that it is a scam.In business,
information simply by asking the person toas in life, a little paranoia is a good thing.Small
provide it through fraudulent means.The PayPalBusiness Q&A is written by veteran entrepreneur
scam is just the latest in a long line ofand syndicated columnist, Tim Knox.
sophisticated attempts to steal personalTim's latest books include "Small Business
information through online means, Amazon, eBay,Success Secrets"
Dell Computer, and many others have been theand "The 30 Day Blueprint For Success!