Best of eScam Tips - Part Two

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This month's issue has the second part of the best of the eScam Tips articles from previous issues of Ray's Computer Tips. The articles below are the full articles.

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Second Chance Ebay Purchase

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        If you bid on items at eBay watch out for this scam. What happens is that after you unsuccessfully bid on an eBay item and the auction is over, someone contacts you by email offering the same item for a certain price (usually the amount that you bid). This person may or may not pose as the original seller. When I was approached, the person claimed to be another company that had the exact same item that I had bid on (which was quite unlikely since I had bid on an assortment of used items). I corresponded with this person telling him that it was impossible, but he kept insisting that he did. He promised to send the items to me as soon as I had made payment to him. Later I received the same email from someone else with a different price for the item. I ended up sending the emails to spoof@ebay.com and they said that they would look into it. That was almost two years ago.
        A few months ago my son was bidding on a motorcycle on eBay but it went higher than he was willing to pay. A week or so later he called me excitedly on the phone and told me that the motorcycle did not sell and the seller was offering it to him at the price that he had bid for it. I mentioned this scam to him. A few moments later he sadly admitted that this offer probably was a scam because it had not come from the same address as the original seller.
        Recently, someone posted a message on our discussion board who had got taken by this scam. The fake seller had asked to be paid by a Western Union Money Transfer. This person paid him $1000 and got nothing for it.
        What happens is that these fake sellers watch auctions on eBay, noting the people who place bids. After the auction is over, they send out second chance emails with the description of the item to the unsuccessful bidders. Do not respond to these. You will lose your money. This is a scam.
        If you don't think it is a scam, at least, make sure that you do not use links in the email. Instead find the item or original seller on eBay and contact him through eBay. Also pay using a payment method that will refund your money when it does not work out, like credit card or PayPal. If the seller will not accept these, do not buy the item.
        The main thing that saved me from being ripped off by this scam was that I took the above precautions, I didn't believe everything the fake seller told me, and I had the sense to realize when it didn't make sense.
        If you don't want to get taken by scams like this, please be smart and cautious.

Unsecured Wireless and Broadband

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        An interpreter in Russia told me about his brother who was a computer programmer and how he liked to hack into people's computers over the internet. If the files that he was looking for were protected, he would start deleting files on the computer. My interpreter laughed about it but I was thinking, "what if he had hacked into my computer?" I would not be laughing and neither would you. Hackers can do much more than delete files on your computer, they can find your credit card numbers, log ins, passwords, and other private information.
        While in Russia, I use dial-up and must pay for each minute that I am online. For this reason, I do not spend much time online and do not worry about hackers. If someone tries to hack into my computer, by the time he figures out where I am and how to get into my computer, I am offline. In the US, on the other hand, I have cable broadband and my computer is hooked up to the internet all day as are most Americans. This gives hackers plenty of time to hack into American computers.
        Also realize that just because you are not in Russia does not mean that Russians will not hack into your computer. With the internet it is just as easy for a Russian hacker to hack into a computer in Russia as it is to hack into your computer. Which do you think he would choose, a poor Russian's computer or a rich American's computer?
        What can you do? How can you protect your computer? There are at least three precautions that everyone with broadband should take.
        First of all, you should have a firewall in place on your computer. A firewall is software that puts a barrier between your computer and the internet and/or network. You can purchase firewall software or WinXP has a free firewall built in. To enable WinXP's firewall, open Windows Explorer, expand the Control Panel item, and click on Network Connections. Your internet and network connections will be listed in the right hand box. Each connection should say "Firewalled" in the description. To set or check this, right click on the connection and select Properties from the popup menu. Click on the Settings button in the Windows Firewall section on the Advanced tab.
        A second precaution is to get a router instead of a hub. Both a router and a hub distribute the internet connection to several computers, but a hub is transparent to hackers showing all of the computers connected to the hub, while a router looks like a computer to a hacker and hides the computers connected to it. But if you have not set the password on your router, it is using a default password that all other routers from that company uses. I am sure hackers know that password and could easily find the computers connected to the router. So if you have not set the password on your router, you should do that. Follow the instructions that came with your router. Once you set it, you can forget it until you need to change your router's settings (which may be never).
        Another precaution is to turn your computer and network off when you are not using it. No one can hack into a computer or network that is turned off.
        I have a bonus precaution for those who have their computers set up on a wireless network. Wireless (Wi-Fi) networks add a weak link to network security. If your wireless network is not encrypted anyone within reception distance can access your internet connection and (if the above suggestions are not followed) your computer. There are even websites that list locations of unencrypted Wi-Fi networks (read here, FREE INTERNET). Symantec conducted an exercise in New York City where they drove through six different neighborhoods and found that 52 percent of Wi-Fi networks had no encryption whatsoever (Reader's Digest, June 2006, p86). Yet, encrypting your Wi-Fi network could be as easy as setting up a password. See the manual that came with your Wi-Fi transmitter for more information.
        These four easy tips may not make your computer impenetratable to the best hackers but unless you have something valuable on your computer, like the access codes to Fort Knox, they should discourage a hacker and convince him to find his laughs elsewhere.

Online Auctions

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        Online auctions, like eBay, are great places to find deals and purchase items that you cannot purchase anywhere else, but if you are not careful, you can also get ripped off. Some people have been swindled out of thousands of dollars at online auctions.
        My losses have not been that drastic, but I have had losses. For example, once I purchased an electric motor for my car's window. I could have bought it at the local auto parts store but it was cheaper online. I spent half a day installing it and it only worked once. I wrote the seller. He told me to return it to him and he would replace it. So I took the motor back out and sent it back. When the second motor arrived, I put it in and it worked...for about a month. I ended up at the local auto parts store, where I paid full price for a motor that is still working two years later.
        Another time I purchased an expensive used tripod. When it arrived, one part was broken and another was missing. After writing back and forth to the seller and providing pictures, he refunded part of my money to me and sent a replacement part. It still does not work good enough for me to use.
        Yet another incident happened recently when I purchased a brand new, in the box, laptop computer from an auction. When it arrived, it was in the box, but it was not brand new. It was remanufactured and resold. When I had a problem with it, I found out that the warranty only applied to the original owner. The seller did replace the bad part and so it all worked out, but I had expected a brand new computer.
        These experiences marred my otherwise wonderful experience with online auctions and taught me to take certain precautions before making that first bid.
        The two main types of fraud for online auctions are misrepresentation of the product and non-delivery. You can protect yourself from these by doing the following:

• Fully read the product description. Sometimes the product description will state certain exceptions that may apply to you. Also remember that it is just as important what a description does not say. Don't assume anything and be suspicious of usual ingredients not listed.
• Always check the Feedback of the Seller before you bid on the item. Feedback is where other buyers can tell of their experience with the seller. Bad feedback can be a tip off to a bad seller. Be sure to read the actual comments and not just look at the rankings. If the seller has bad feedback or no feedback, it would be smart to rethink whether you want to bid on the item or not.
• Pay only with PayPal. PayPal has some great advantages. One of those is their return policy. If the item was misrepresented and you returned it or you did not receive the item, PayPal will give all of your money back. The seller does not have much say about it.
• Do not wait too long before trying to resolve the problem. Both PayPal and eBay have a limit in how long after the sell you can file a complaint. It is not very long.
  

        Apart from the above suggestions, here are some warnings from the FBI:

        FBI Warnings - Consumers are strongly cautioned against entering into Internet transactions with subjects exhibiting the following behavior:

• The seller posts the auction as if he resides in the United States, then responds to victims with a congratulatory email stating he is outside the United States for business reasons, family emergency, etc. Similarly, beware of sellers who post the auction under one name, and ask for the funds to be transferred to another individual.
• The subject requests funds to be wired directly to him/her via Western Union, MoneyGram, or bank-to-bank wire transfer. By using these services, the money is virtually unrecoverable with no recourse for the victim.
• Sellers acting as authorized dealers or factory representatives in countries where that company has no such dealers should be avoided.
• Buyers who ask for the purchase to be shipped using a certain method to avoid customs or taxes inside another country should be avoided.
• Be suspect of any credit card purchases where the address of the card holder does not match the shipping address. Always receive the card holder's authorization before shipping any products.

        Yes, there is fraud on online auctions, but if you take the above precautions the benefits will greatly outweigh any loss you experience.

Counterfeit Cashier's Check

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        This scheme targets people that use internet classified ads to sell merchandise. What happens is that a person located outside of the United States contacts the seller. He tells the seller that he has an associate in the United States that owes him money and that he will have the associate send the seller a cashier's check. The amount of the cashier's check is usually thousands of dollars more than the price of the merchandise.
        He tells the seller that the excess amount will be used to pay the shipping costs on his end. He instructs the seller to deposit the check, and as soon as it clears, to wire the excess funds back to him or to another associate identified as a shipping agent. In most instances, the money is sent to locations in West Africa (Nigeria).
        Because a cashier's check is used, a bank will typically release the funds immediately, or after a one or two day hold. Falsely believing the check has cleared, the seller wires the money as instructed.
        In some cases, the buyer cancels the sale and asks that the price of the item (or the remainder of the money from the check) also be sent to him.
        Shortly thereafter, the seller's bank notifies him that the check was fraudulent and that the bank is holding him responsible for the full amount of the check. The seller ends up paying for the thousands of dollars that he sent to the person in another country and there is no way that he can get it back.
        The best way to avoid this scam is to never accept cashier's checks for internet purchases. If you don't want to take that extreme precaution, here are some tips:

• Be suspicious of offers from outside the United States.
• Be wary if a buyer sends more than the purchase price of an item.
• Use Internet phone directories to obtain the phone number of the bank issuing the Cashier's Check and then call or visit the bank to confirm the check is legitimate.
• If you're selling a car, tell the buyer you'll meet him at the bank that issued the check and cash it there. That way you will know if the check is for real.
• If it is an out-of-state cashier's check, tell the buyer to cash it himself. Treat a cashier's check like any check - with caution.
• If possible ask that the funds be wired to your account instead of using a cashier's check. Typical wire fees range from $20 to $25.

        If you believe you may have fallen victim to this type of scam and wish to report it, please file a complaint at http://www.ic3.gov/ (this is for US citizens).

Credit Card Fraud

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        Credit card fraud costs hundreds of millions of dollars each year. Your card does not have to be stolen in order for you to fall victim to credit card fraud.
        Many people fear credit card fraud on the internet, but I have experienced credit card fraud more offline than online. Here are some examples of offline scams:

• A thief goes through your trash to find discarded receipts or carbons and then uses your account numbers illegally.
• A dishonest clerk makes an extra imprint from your card and uses it to make personal charges.
• You use your card at an ATM or gas pump and a thieve has added a scanner which gives him your credit card information.
• You respond to a mailing asking you to call a long distance number for a free trip or bargain-priced travel package. You're told you must join a travel club first and you're asked for your account number so you can be billed. The catch! Charges you didn't make are added to your bill, and you never get your trip.

        You must be careful with your credit card both online and offline.
        There are many online scams that exist for the sole purpose of getting your credit card number, expiration date, and security code. They usually start with an email to you asking you to click on a link. DO NOT CLICK ON LINKS IN THESE EMAILS. Instead if you think it is a valid email from your bank, for example, call them or find out what their website is and go to it (do not use the web address in the email). If the email is from a bank or financial institution wanting your credit card number, IT IS A SCAM. Banks already know your credit card number. They never ask for it online. If you fall prey to this scam, your credit card will soon have hundreds of charges on it and you will have to sort it all out. Even though, you probably will not have to pay the fraudlent charges (the merchant usually gets stuck with that), it will be a hassle and may ruin your credit.
        Even though credit card companies have added security measures to help protect you, thieves can find ways around them. Once a thief has your credit card number, he can go online to any credit card processing site and try expiration dates until he gets the right one. Thieves from Malaysia use this method (we block all orders from Malaysia on our website for this very reason). Once he has the expiration date, he can use your card at any website that does not require the use of the security code.
        Despite what credit card companies advertise, they do not try to find or prosecute these thieves from other countries. They just require merchants, like us, that received the money and sent the product, to return the money. We lose money every month from this.
        A thief does not even have to get your credit card number from you. When I lived in Russia I came across a program that would randomly create credit card numbers. Instructions were given on how to use the random credit card number to get a free subscription to AOL. Within a month AOL completely pulled its services from Russia.
        So should you stop purchasing online? No. If you are careful, you should not have any problems online. Here are some tips to remember:

• Only give out your credit card number to purchase things that you have sought out yourself.
• Only deal with reputable companies.. A reputable company will not rip you off (if they do, you have some type of recourse).
• Watch out for email scams.
• Check your monthly credit card statement for fraudulent charges. Report any to your credit card company to start the chargeback process.
• Visit any of the three credit bureaus, Equifax, Experian, or TransUnion at http://www.annualcreditreport.com (I have been informed that this link only works in the USA), once a year to check your credit report for free. Report any inaccuracies to the appropriate credit bureau.
• If your credit card is stolen or thieves get ahold of your credit card number, report it immediately to your credit card company.
• If you can't follow the above tips, get yourself a second checking account just for internet purchases. Only put small amounts in this account and use the check cashing card to make purchases. This will limit your loss to what is in the account.

        If you are cautious with your credit card number and follow these tips, shopping online will be safe.


Design Your Keys - Put Your Keys To Work For You

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        I am really excited about our new program, Design Your Keys. It has made my time on the computer quicker and easier. Have you tried it out yet?
        Here are some things that you can do with Design Your Keys. Just click on the Quick Start button on the front page of Design Your Keys to set up the following functions.
        To start Windows' Calculator, just press the Insert button.
        To shut down your computer, press the End key.
        To play Solitare, just press the F11 key.
        Open the browser, Internet Explorer, by pressing the F2 key.
        Open Windows Explorer with the F4 key.
        Hibernate the computer with the Home key and make the computer Sleep with the ScrLk key.
        Check your emails in Outlook Express by clicking on the F1 key.
        To go to YouTube, just press the F7 key.
        To get a map or get directions online, press the F8 key.
        You can also open Yahoo Messenger, play Freecell and Hearts, disable/enable Design Your Keys, load the next theme of Design Your Keys, and show the Design Your Keys menu by clicking other keys.
        If that is not enough, there are other functions in other themes, like, Shopping (quick shopping on the internet) and Control Panel (load the individual items with a keypress).
        And if that is not enough, build your own themes. You name it, Design Your Keys can do it with a press of a key.
        Give Design Your Keys a try for free at - http://superwin.swmirror.com/designyourkeyz.exe. Get more information at http://www.superwin.com/designyourkeys.htm.


Questions on our Discussion Board

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• start up
  
• Hardware Update
  
• Startup Folder
  
• Changing administrator's user name
  
• Really buggy Hard Drive
  
• transfer old hard drive to new computer
  
• IE8 Is Blank when Finding Websites
  
• CD drive
  
• Look In Pull Down Problems
  
• Windows Update
  
• Quick Launch Icons
  
• Outlook error message after running RegVac
  
• Error on my Toshiba
  
• What is a .cx3 file
  
• Error message on DOS/First Choice Software
  
• computer error..
  
• Motherboard won't boot
  
• Outlook express backup
  
• Windows 7
  
• Desktop icons dont work
  
• Shortcut to Firefox saved passwords
  
• Scroll Lock?
  
• sleep option
  
• HID input device
  
• Is defragging worthwhile?
  
• Uninstalling program on startup menu
  
• avi format
  
• reset connection
  
• CD/DVD drive disappeared!
  
• server busy
  
• disabling Symantec
  
• Connecting two computers with wireless for internet
  
• why no replies?????
  
• software counterfeiting
  
• Recovery after major failure
  
• file backup
  

Thanks for reading,
Ray Geide