Scam of the day – April 29, 2012 – Mobile device hacking

Mobile device hacking whether it be your smart phone or iPad or other mobile device is turning into the new target of scammers and identity thieves and with good reason.  More and more people are using their mobile devices not just to store important personal information, but also to do financial transactions such as shopping and banking.  Unfortunately we have a perfect storm when it comes to hacking into portable devices.  They contain much information of value to scammers and identity thieves, they are easty to hack into and the owners of portable devices are not taking the steps to secure these devices as much as they would their computers.  Thus more and more people are having their information stolen and becoming victims of identity theft.

TIPS

Make the physical security of your mobile device a priority.  Theft of the devices is an easy way to fall victim to identity theft.  Also protect your portable device with hard to guess passwords.  Also use encryption software and make sure that your device is kept up to date with the latest security software patches.  Finally, one of the biggest threats to your security on your portable device comes from downloading malware through corrupted apps.  Only download apps from legitimate sources and only download apps you are sure are safe.  Finally, whenever you download an app, pay attention to the permissions and services that are part of the app agreement and do not give access to transmit data that is not necessary for the operation of the app.

What is Smishing?

Smishing is similar to phishing on your computer, but this time the scammers message comes as a text message on your cell phone.  Often it comes purportedly from your bank telling you that your account has been frozen and then asks you to provide personal information or your account will be frozen.  Smishing is also used by scammers, particularly during the holidays to appear to provide free coupons or free coupons.

TIP

Never respond to a smishing message.  By so doing you only succeed in telling the scammer that you are out there.  Never provide personal information in response to a text message from anyone.  If you believe the message may be legitimate, contact the entity at a telephone number or website that you know is accurate.  Don’t download coupons from emails or text messages.  Again, if you think it may be legitimate, go to the website of the company that you know is legitimate and download the coupons there.

What is a Credit Score / Credit Report?

Your credit report is one of the most important documents in your financial life.  The information in your credit report as maintained by the three major credit reporting agencies, Equifax, TransUnion and Experian is used to calculate your credit score.  This is used by financial institutions to evaluate your credit worthiness and can affect your ability to get a credit card, mortgage loan or a car loan.  It also can affect the rate that you will be charged on such loans.  Your credit score is also used in many states by companies in making employment hiring decisions.  When you are the victim of identity theft, the effect on your credit score can be devastating.  It is a complicated, frustrating and time consuming task to correct your credit report after you have been the victim of identity theft.

TIP

Make sure that your credit report and your credit score are accurate.  Get a free copy from each of the three major credit reporting agencies once a year by going to www.annualcreditreport.com.