online security threat glossary

buySAFE’s Security Threat Glossary will help you understand and avoid different online threats you might encounter when shopping and browsing online. The entries below provide information about some of the more common terms that you might encounter.

bid shielding

The practice of placing a low bid in an online auction and having a second person enter a bid that is high enough to discourage other bidders. At the last second, a high bid is retracted and the low bid wins. Here's how it works: One person bids $10 for a book and has a friend quickly bid $500, assuming that no one will overbid the inflated price. The high bidder retracts the bid at the last minute, giving the first person a $10 deal.

bid siphoning

In an online auction, the practice of contacting shoppers or bidders and offering to sell them the same item they are currently bidding on, thus drawing bidders away from the legitimate seller's auction or marketplaces. Avoid contact with sellers attempting to draw you away from the marketplace, as these types of transactions often end up going bad because they do not have the monitoring or protections available in online auction marketplaces.

computer virus

A virus is a self-replicating/self-reproducing program that spreads by inserting copies of itself into other executable code or documents. Viruses are one of several types of malicious software or malware. A basic rule is that computer viruses cannot directly damage hardware, but only software. Often, when a virus infects your computer it can wipe out data, significantly affect computer operation, and use your Internet connection to spread. The best way to protect yourself from a virus is to use an anti-virus program on your computer and avoid suspicious-looking Web sites.

escrow

In concept, escrows offer a good way for shoppers and sellers to ensure that both parties are happy before a transaction is finalized. Unfortunately the costs associated with escrows limit their usefulness to larger dollar valued transactions, which is why fraudsters are drawn to using them to rip people off. An escrow is a third-party holding company that takes into possession both the funds and product in a transaction. When the funds have been received by the escrow company they release the product to the buyer for review. Upon review and acceptance of the product, the buyer can notify the escrow company to release the funds to the seller.

The thing to look out for with transactions involving escrow is the reputation of the escrow company being used. Often, fraudsters will set up phony escrow Web sites that appear legitimate and reputable. They will then engage a potential shopper or even an online seller to send money or product to the fake escrow company’s address. Once the fake escrow company gets the funds or product they stop answering e-mail and fail to meet their end of the transaction. The best way to avoid frauds with escrow companies is to avoid such transactions altogether, or to only engage in transactions that offer the use of a reputable escrow service whose identity can be verified.

hacking

Computer hacking involves some degree of violation of the privacy of others, or damage to computer-based property such as files, web pages or software. The impact of computer hacking varies from being invasive and annoying to illegal.

hijacking

Online, hijacking refers to the act of obtaining an individual’s personal account information and using it for malicious purposes. An example would be a fraudster getting a hold on someone’s personal credit card information and going on a spending spree. The best way to avoid account hijacking is to keep your personal information private, and regularly change the passwords to your personal accounts.

identity theft

Identity theft occurs when a criminal uses another person's personal information to take on that person's identity. Identity theft is much more than misuse of a Social Security number – it can also include credit card and mail fraud. Be very mindful of with whom you share your personal information.

money order

A money order, much like a check, is an order for the payment of a specified amount of money, usually issued and payable at a bank or post office. When used by fraudsters, money orders offer a virtually anonymous way for con artists to cash in on a payment that is not deserved. Money orders are often used by fraudsters who sell items that they don’t actually ever intend on sending. Some signs to look out for with money orders are sellers who have low reputation scores, sellers who do not offer alternate payment methods, and sellers who ask buyers to send a money order to an international location.

phishing

Phishing is a form of identity theft whereby scammers send an e-mail that appears to come from a legitimate company with whom the recipient conducts business (such as a bank or payment processing service). Recipients of such e-mails who click through may then unwittingly submit their personal information to the fraudulent site. The scammers then use this personal information for their own purposes, or sell the information to other criminal parties.

The best way to avoid phishing attacks is to not click through any e-mails that you believe to be suspicious. Additionally, it is best to never follow links from such an e-mail (legitimate or not), but rather to directly enter the URL of the company from whom the e-mail appears to originate. For example, if you receive an e-mail from BANK X notifying you of irregular activity on your account, you should close the e-mail and go directly to the bank’s Web site by typing www.BANKX.com in your browser’s address bar. Also, always be sure to look for the lock symbol in the status bar of your browser to indicate that the page you are visiting is secure.

shill bidding

Shill bidding refers to fraudulent bidding by an online seller (using an alternate registration) or an associate of the seller in order to inflate the price of an item. This practice is also known as bid rigging or collusion. To avoid being victimized by this practice, do not ever bid higher then what you think is a fair price for a particular item.

spam

SPAM is unsolicited or bulk e-mail sent without the express permission of the recipient (phishing e-mails are a form of spam). SPAM is best avoided by limiting the public exposure to your e-mail address, and by utilizing the anti-SPAM features of your mail client and ISP.

spoofing

Another word for phishing. See definition for phishing.

spyware

Spyware is a form of malicious software designed to interrupt or take partial control of a computer's operation without the consent of that computer’s user. Spyware has come to refer more generally to software that threatens the computer's operation and information for the benefit of a third party. The best way to avoid spyware is to avoid the sites and e-mails that leave it on your computer. There are a number of programs available that offer spyware removal and detection and can be downloaded for free at sites like download.com.