Beware of Computer Fraud

(NC)—Have you ever been swindled in a computer scam or know someone who has? By all accounts it's a nasty and invasive crime. Here's how to protect yourself so you don't become another victim.

What is Computer Fraud?

As forensic expert and chartered accountant David Malamed, partner, Grant Thornton LLP in Toronto explains, "Computer fraud is any fraud where an individual is misrepresented through technology. It ranges from being misled, to paying money upfront for services or products that never arrive, to sophisticated programs that infect your computer and steal information." "Computer fraud is rampant because computers are easy to hide behind," adds forensic expert and chartered accountant Jodie Wolkoff, director, Wintrip Wolkoff Shin in Toronto. "Crime organizations take advantage of this anonymity and use technology to defraud businesses and individuals. These frauds are difficult to trace because they originate literally anywhere in the world."

Types & Techniques

Wolkoff identifies two types of fraud: e-commerce (auction) fraud and identity theft.

E-commerce fraud includes work-at-home schemes. You are required to pay for a start-up package upfront, but nothing is delivered. Fraudsters also create 'spoofed' websites or 'phish' for information by sending an e-mail that appears to originate from your financial institution, asking you to validate your bank account and other personal information (NEVER respond). "Fraudulent techniques like phishing can lead to identity theft. Your accounts are skimmed; or credit cards, bank accounts and even mortgages are opened – all under your name. The ultimate identity theft occurs when your social insurance number (SIN) is stolen," cautions Wolkoff.

Beware Botnets

Malamed identifies Botnets as potentially the number one technology threat. "A Botnet is jargon for a software 'robot' program that lives in computers, steals information, and sends it to a remote computer. Surfing websites, downloading, and opening e-mail attachments increase your susceptibility to being victimized by a data breach via a Botnet."

Because no system can detect all Botnets, be careful how much information you share online – be it an online survey or credit-card application.

Security Begins at Home "Purchase a good security program," Malamed continues, "but avoid being complacent. Security programs only protect you from known threats, with solutions.

In training corporations and groups in fraud prevention, he also recommends making it hard for fraudsters by educating yourself.

Prevention Tips

Wolkoff offers these tips: • Be careful what you post on websites like Facebook – don't post your birth date or other personal information that can be used to verify your identity. • Don't open unfamiliar e-mails. • Investigate businesses you are dealing with online. Just because a website looks professional doesn't mean it is authentic. Check consumer sites. • Parents and schools should ensure children are informed about computer schemes and supervise their activities online as much as possible. - News Canada