Thursday, November 24, 2011

Xbox Live Scam: How Can People Be So Stupid?


If you missed it: Evidently, a bunch of folks, largely in Europe, got tricked by an email offering free Microsoft points by going to a fake website and disclosing their credit card information. The cost to each person is estimated to be between $150 and $400. So, how can people be so stupid? Actually, what you should be asking is: How can you make sure you don’t make the same embarrassing mistake?

Phishing scams work on three principles: Greed, convincing you that the attacker can be trusted, and our tendency to have tunnel vision when we see something we want. Anyone can be tricked, my own Xbox live account was compromised after someone phished the Xbox support site and got them to reset my password so they could get access. Apparently, I permanently lost my original gamer tag.

Red Flags
The first step in protecting yourself is to set up red flags that trigger you to stop and think about what you are doing. The first red flag is when someone contacts you rather than you contacting them through email or a phone call (before there was the internet phones were used to get this information).   Immediately consider when you get an email or call from a service, your bank, or vendor that they may not be who they say they are.

The second red flag is if they ask for your unique ID, as they should know it – given they are calling you.   But even if they have IDs, you should remember that this is, often, public information. it doesn’t mean they actually are who they say they are either.

Xbox 360 - Kinect Bundle

The third red flag is any unique personal information like birthdate, mother’s maiden name, or the last 3 digits of your social.     They may need these to identify you, but at this point you should consider taking down their number, verifying that this number actually goes to them, and calling them back. If you don’t verify the number, anyone can answer the phone and say they are someone else.

Any credit card information requested in its entirety should cause you to immediately stop and reconsider the call. They should already have your credit card information and there should be no reason for them to ask for it again, unless this is a subscription renewal call and the card they have is out of date.   Personally, I recommend going to the subscription web site (from your bookmarks and not clicking on a link in an email) and putting that information in personally and never giving it over the phone.

Finally, and the biggest red flag of all, is anyone asking for your password. If they are who they say they are ,they don’t need to log into your account to get anything done. They have administrator’s access and even asking for your password should violate their own policies and open them to liability. There is no legitimate reason for them to ask for your password, none. Hang up the phone and then call up the vendor and report that you may have been attacked.

Don’t Be Stupid

One final warning about all scams, they depend heavily on your own dishonesty.   Often we’ll see a deal that looks too good to be true and we’ll go for it like a starving dog that sees a raw hamburger. The other day I saw an ad for a motorcycle that was priced at about 25% of its market value and I damn near had to sit on my own hands before my brain kicked in and noticed the guy was using a generic email address and had misrepresented what city he was in. I am positive it was a scam, but I got “great deal blindness”.

If something sounds too good to be true, bet that it is and rather than thinking you are taking advantage of some idiot, consider that they are betting you are the idiot. Here is another thought: If they really are stupid and sell something so cheap,  why hasn’t someone else bought it? Consider what they’ll do if you do, in effect, cheat them?    Sometimes the aggravation really isn’t worth taking advantage of others,  particularly when there is a good chance they are taking advantage of you.

Anyone can be cheated; the trick is to assure you aren’t the target.

Rob Enderle in Business on November 23

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