The document details how an identity theft prevention company analyzed a scam targeting online classified ads. An employee posted an ad to sell furniture on Craigslist and received inquiries from scammers. One scammer seemed plausible so the employee engaged further. The scammer then tried to get the employee to send money via PayPal or Western Union without negotiating price or seeing the items. The scammer sent a fake PayPal email to trick the employee into sending money, but the employee recognized it as a scam. The document warns people to be aware of such scams on online classified sites.

1. Anatomy of a
Scam

2. Common crime
2
An Identity Theft 911
employee recently posted
an ad to sell furniture on
the popular website
Craigslist.
Of the 13 inquiries, five
were almost certainly from
con artists looking for a
free paycheck. One of them
seemed plausible, so we
decided to write back…
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

3. Harsh reality
3
What follows is a real-world example of how
fraudsters are trolling online classifieds,
along with tips on what to look for so you’re
not the next victim.
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

4. For sale
4
The post
was simple
enough:
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

5. Friendly approach
5
The scammer writes an email. Note the urgency:
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

6. Suspicious sender
6
Notice the different reply-to addresses. Multiple email accounts
is one way crooks try to cover their tracks.
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

7. A closer look
7
Our agent wrote back, fully aware it was a scam and curious
about the direction it would take.
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

8. More bad signs
8
The scammer replies positively but:
• There is no negotiation of price. • Will pay without seeing product in person.
• Wants the product immediately. • Wants to pay through an online service.
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

9. 9 Don’t try this at home
Next, our employee sent a PayPal request from a
dummy account not linked to a bank or credit card. At
this point, if you aren’t certain the buyer is legitimate,
DO NOT send an e-invoice. You don’t want the bad guys
to know you use online pay services and what email
address they’re linked to.
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

10. Setup for fraud
10
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

11. Avoid transferring funds
11
This is the nut of the scam: The crook tries to get you to use
Western Union or PayPal to send them money.
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

12. Spot the scam
12
What followed
next was an
email designed
to look like an
official PayPal
communication.
Note the “from”
address isn’t
paypal.com:
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

13. Bad information
13
The item title is Ford F450, but the ad was for couches. Also, in
a real transaction, you would never get the warning in the
yellow box saying that you won’t see the transaction in your
Account Overview.
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

14. More scam evidence
14
The email uses a wordy explanation filled with bad grammar and
typos on how to send money via a wire service. No online business,
including PayPal, eBay or Amazon, will ask you to do this.
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

15. The final touch
15
The crook closes by saying the only way to contact PayPal is to reply
to this message via email. The fraudster doesn’t want you to
contact the real PayPal since then the scam would be revealed.
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012

16. 16 Not all bad
Using Craigslist, PayPal and other sites is an excellent,
modern means of doing business. (Our employee
eventually sold his couches to a happy couple.) But like
it or not, bad guys prowl these sites regularly.
Stay sharp, and keep your identity and money out of
the wrong hands. If it looks like a scam, it probably is.
© 2003-2011 Identity Theft 911, LLC. All Rights Reserved - Confidential May 30, 2012