Beware of phishing scams

guest commentary by Ethan Nobles

The Arkansas Attorney General’s office has warned us time and time again that scammers are constantly out looking for new opportunities.

According to Bankrate.com, a number of scammers have been able to find plenty of opportunities thanks to troubles facing the nation’s financial institutions. Bankrate.com has warned of phishing scams designed to trick consumers into submitting sensitive financial information to people out to steal money.

A phishing scam typically uses a phone e-mail to collect personal or financial information under false pretenses. A scammer will usually send out an e-mail that looks like it comes from a legitimate business and directs people to a Web site where they are asked for personal and financial information.

People who follow the directions in those e-mails will usually end up on a site which asks them to verify or update account information. According to Bankrate.com, a lot of consumers fell victim to phishing scams when Citigroup announced plans to buy Wachovia’s banking operations last year.

Customers of both institutions received official looking e-mails asking them to click on a link and update their account information. When that information was provided, the phishers behind the scam were able to wreak financial havoc on people who had fallen victim.

The problem, of course, is that some e-mails are from legitimate companies that are trying to get in touch with their customers. How can a customer tell the difference between a phisher and a legitimate company? Bankrate.com urges caution when dealing with just about any company doing business through e-mail.

If in doubt, contact the institution purportedly sending the e-mail by picking up the phone and giving them a call. Of course, don’t use the number provided in the e-mail – stick with the phone number that is listed on financial statements or on other items you know are legitimate.

If you think you’ve received a suspicious e-mail, you can forward it to the Federal Trade Commission at "mailto:[email protected]" and the Anti-Phishing Working Group "mailto:[email protected]" to help those organizations combat phishing and fraud.

Bankrate.com also advises that you check your credit reports annually to find out if any suspicious accounts are listed on them. Those reports are free through this link.

While phishing scams are generally perpetrated through e-mail, scammers have been known to contact people through mail, telephones, Web sites, instant messages and pop-up boxes on computers.

Bankrate.com generally urges caution when dealing with any company seeking financial information. If in doubt, call companies you deal with directly rather than giving out the requested information as soon as you’re asked for it.

Ethan Nobles is director of media relations for the Arkansas Realtors Association.