The 7 most dangerous scams this summer

If you don't want to get stung this summer, keep an eye out for these seven scams!

Identity fraud is a phrase that is frequently being bandied about at the moment - and with good reason. ID fraud is becoming an increasingly big problem. In fact, CIFAS, the UK’s fraud prevention service, recently reported a 14% rise in identity fraud in the first half of 2010, compared to the same period last year.

Meanwhile, research from the Unisys Security Index shows that 87% of people are worried about unauthorised access to their personal information and are also concerned about other people obtaining or using their credit card details.

However, while consumers are most afraid of ID theft, they are least concerned about internet security. And as a result, they could be leaving themselves exposed to fraud.

So what are some of the biggest scams around this summer? Here are seven of them.

#1 Online shopping threats

These days, shopping online is so easy and far less hassle than having to push your way through hundreds of people on the high street.

But if you’re planning to do some summer spending, be warned. There are plenty of dodgy websites out there to catch you out if you don’t have your wits about you.

To avoid getting caught out, make sure you always check whether there’s a padlock icon at the bottom of the screen. And when you go to pay, you should also ensure the web address at the top of the page changes to ‘https://’ , as opposed to the usual ‘http’. The ‘s’ signifies it’s secure.

It’s also a good idea to pay with a credit card if the amount is over £100. That’s because you’ll be protected by Section 75 of the Consumer Credit Act (1974), which will give you valuable consumer protection if there's a problem with your purchases.

If you’re buying through sites such as Amazon, make sure you read the seller feedback. If the ratings of the seller are poor, or there’s no feedback at all, the seller is probably not worth doing business with. Bear in mind, Amazon says it will never ask you to verify your password, credit card or bank account number so make sure you never respond to these emails. For more information, check out the Amazon website.

Finally, make sure you keep a close eye on your bank statements so that you can spot any suspicious transactions. A really easy way to do this is with the lovemoney.com online banking service.

Don’t be scammed! Emma Roberts reveals some dangerous scams that are circulating the web

#2 Social networking sites

With the rise in popularity of social networking sites such as Facebook, Bebo and Twitter, there’s an even greater chance of being scammed. These sites are packed full of personal information, particularly if you’re not careful with your privacy settings.

According to Consumer Reports’ 2010 State of the Net analysis, more than half of social network users share private information about themselves online. What’s more, a quarter of households with a Facebook account don’t use the site’s privacy settings or aren’t even aware of them. And finally, 40% of social network users post their full date of birth online – which could make them more vulnerable to ID fraud.

To avoid being caught out, be wary of games or quizzes where you are asked to enter your personal details to work out a quirky name, as often these applications will harvest your details which may later be sold on. Although it may seem as if these applications belong to Facebook, they actually don’t, so Facebook is not accountable to the host site. And of course, always ensure your privacy settings are as high as they can be.

#3 ATM skimmers

It’s common sense that when using the cash machine, you should keep your wits about you. Be wary of anyone who might be peering over your shoulder and if you think someone is, move to a different machine.

Always make sure you cover the pad when you’re entering your PIN so that no one else can see.

It’s also a good idea to check the actual structure of the machine to make sure it’s solid and sturdy. Check for any signs of a false panel as this may contain a small camera to capture your card details and PIN. If the machine doesn’t seem to work at first, move on to a different machine.

#4 Account checking

If you receive a phone call or email from someone claiming to be from your bank and asking to check your account details, the alarm bells should start to ring.

Your bank will never ask you to confirm your bank details. If you do receive one of these emails, don’t click on any links and delete your email immediately. And if you receive a phone call, hang up, check the number is real by looking on the website, and then phone back.

If you are in doubt about the validity of an email, or if you think that you may have disclosed information to a fraudulent site, contact your bank immediately. For more information, check out the Bank Safe Online website.

#5 Wardriving

If you’re setting up a wireless network at home, make sure it’s secure. Your Wi-Fi network range will radiate beyond your home and that means you could be susceptible to what’s known as wardriving.

This is when someone drives around in a car and searches for Wi-Fi networks to use with their laptop so they can use your unsecured network for free. This means they could sit outside your property and anonymously download illegal material, and it would look like you were to blame.

Wardrivers are also known to hack into computers to steal personal details. You can find out how to protect your network in Complain successfully about your broadband provider.

#6 Holiday scams

Everyone loves a good holiday. But make sure you don’t end up booking one you can’t actually go on.

Unfortunately, there are a number of bogus websites out there pretending to be genuine travel operators offering bargain holidays in an attempt to gain people’s credit card details.

To avoid this scam, make sure the website you use is always secure when you enter your payment details and always check that the travel company you plan to use is a member of a recognised travel authority such as ABTA. And don’t forget to be wary of any offers that sound far too good to be true!

You can find out more in Don’t let this scam destroy your summer.

#7 ID theft insurance

Finally, however worried you are about ID fraud, don’t get sucked into buying an ID theft insurance plan as personally, I think this is a rip-off in itself! That’s because it doesn’t provide you with any compensation for fraudulent transactions if you're a victim of ID theft. So I’m not totally sure what the point of it is. You can find out more about ID theft insurance in Avoid this expensive rip-off.

If you do want some kind of cover, I think protective registration is a better deal. Protective registration can be obtained separately through CIFAS at a minimal cost of £14.10 a year. This will mean a warning will be flagged up on your credit file to ensure every CIFAS member (such as a bank or building society) takes extra precautions to make sure an application for credit or to open an account is genuine before it is granted.

More: Avoid these sneaky charges on holiday | 14 ways to protect your privacy