How to avoid email scams

By Andrew Stucken

Alphabet M Many unwanted emails are no worse than annoying. But some spam is downright dangerous – aiming to steal your money or your identity. Rare is the internet user who has not been plagued by suspicious emails. Andrew Stucken details the main threats and shows how to spot a likely scam.
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Phishing is jargon for emails luring unsuspecting users into clicking on links to fraudulent sites designed to resemble that of a real company. Fraudsters want you to enter personal and/or bank and credit card details.

is jargon for emails luring unsuspecting users into clicking on links to fraudulent sites designed to resemble that of a real company. Fraudsters want you to enter personal and/or bank and credit card details.

Advance fee fraud emails from alleged Nigerian businessmen offering enormous sums of cash in return for an advance 'administration fee' are something of a national joke. But beware other forms of this con – for example, an email announcing you have won a lottery, or claiming you have inherited millions from an unknown relative.

You will be asked to send money for 'administration purposes' – don't. Worse, they may ask for personal information, including bank details, and expose you further to the risk of theft and identity fraud.

Beware share tips in emails Some spammers buy shares in a small company and then mass email – perhaps millions of addresses. They want people to buy the share and bump up the price so they can sell at a big profit – often causing a price crash and taking other investors down with it.

These are some of the most common types of scam. See a site such www.hoax-slayer.com for a fuller list and to check any promotional email you are unsure about.

How to avoid getting scammed:

Your first line of defence should be a spam filter. Some ISPs and web-based email services build this safeguard into their software. Otherwise, try a third party alternative.

Avoid clicking on suspicious attachments. Apart from the risk virus and spyware infection, attachments can contain misleading information, such as share tips.

Set up a dummy email address just for re-directing spam. Use it when buying online or signing up for websites.

Don't read emails if you are unsure who they are from. In fact, NEVER open an email unless you are certain who it is from.

Don't provide your email address on internet forums. Spammers routinely target forums as an easy source of addresses.

Learn to spot tell-tale signs of fraud. These include:

Web-based email addresses - for example, Hotmail and Gmail. Legitimate companies should have their own domain. Spammers use these addresses because they are free, and easy to set up. When they are closed down they simply move on to another.

Bad spelling, grammar or English Many spam emails emanate from non-English speaking countries.

Paying by cheque Almost all legitimate e-businesses now ask you to pay electronically.

Unexpected fees Common in Advance Fee scams. Think very carefully before sending money under these circumstances.

Above all, develop and maintain a healthy scepticism. The saying "If it's too good to be true, it probably is" is worth bearing in mind.

Written by Andrew Stucken, this article was first published on February 2, 2011. Andrew's opinions are his own and for general information only. Always seek independent, professional, financial advice.

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