A Warning For People Who Pay Bills Online

by Michele Cheplic | More from this Blogger

29 Oct 2006 09:52 AM

Did you know that Americans pay one in four bills online? Paying your bills online is convenient. But consumer advocates say that convenience comes with a risk, especially if you have ditched all of your paper bills for cyber statements.

According to the Anti-phishing Working Group, there is a new scam out there preying on people who are familiar with the online bill paying process. The scam works like this: an email similar to statements you receive from a company you owe money to is sent in a format that looks exactly like the bill you're used to getting. Con artists send the fraudulent email and ask you to supply them with personal information and passwords. Security experts say the personal information you unknowingly provide gives scam artists the ability to access credit card, bank, or retirement accounts-then they can wipe you out.

But that's not the only problem with online bill paying. According to consumer protection experts, another problem with e-statements is that they sometimes get caught in spam filters, which can cause you to miss payments, and potentially means you will have to pay a fortune in late fees.

So how can you protect yourself from phishers? Experts say, stay alert... make sure you know what information you are entering and where it's going. Another tip: if you get an email you think may be a scam, call the company that supposedly sent the email to double check that the statement was in fact generated from them.

In the end, consumer experts say paper statements are still your best bet... provided you mail them in a U.S. mailbox so no one can steal them and get your account information. I have to admit I am a big wimp when it comes to paying for anything online. I have been a victim of identity theft (not related to online bill paying) in the past and hope to never have to deal with the fears and frustrations, which resulted from that incident again.

Related Articles:

Online Banking Basics

BEWARE! New Mail Scam

How To Protect Yourself From Being Scammed On Social Networking Sites

Learn more about Michele Cheplic

Michele Cheplic was born and raised in Hilo, Hawaii, but now lives in Wisconsin. Michele graduated from the University of Wisconsin-Madison with a degree in Journalism.

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