Internet Frauds


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  • The Internet Crime Complaint Center said that it received more than 275,000 complaints in 2008, up from about 207,000 in 2007. The total reported dollar loss from such scams was $265 mln, or about $25 mln more than in 2007. Among those who filed complaints, men reported losing $1.69 for every dollar that women lost.
  • Know who you’re dealing with. If the seller or charity is unfamiliar, check with your state or local consumer protection agency and the Better Business Bureau. Some Web sites have feedback forums, which can provide useful information about other people’s experiences with particular sellers. Get the physical address and phone number in case there is a problem later.Look for information about how complaints are handled. It can be difficult to resolve complaints, especially if the seller or charity is located in another country. Look on the Web site for information about programs the company or organization participates in that require it to meet standards for reliability and help to handle disputes.Be aware that no complaints is no guarantee. Fraudulent operators open and close quickly, so the fact that no one has made a complaint yet doesn’t meant that the seller or charity is legitimate. You still need to look for other danger signs of fraud.Don’t believe promises of easy money. If someone claims that you can earn money with little or no work, get a loan or credit card even if you have bad credit, or make money on an investment with little or no risk, it’s probably a scam.Understand the offer. A legitimate seller will give you all the details about the products or services, the total price, the delivery time, the refund and cancellation policies, and the terms of any warranty. For more information about shopping safely online, go to pressure. Legitimate companies and charities will be happy to give you time to make a decision. It’s probably a scam if they demand that you act immediately or won’t take “No” for an answer.
  • Think twice before entering contests operated by unfamiliar companies.Fraudulent marketers sometimes use contest entry forms to identify potential victims.Be cautious about unsolicited emails.  They are often fraudulent. If you are familiar with the company or charity that sent you the email and you don’t want to receive further messages, send a reply asking to be removed from the email list. However, responding to unknown senders may simply verify that yours is a working email address and result in even more unwanted messages from strangers. The best approach may simply be to delete the email.  Beware of imposters. Someone might send you an email pretending to be connected with a business or charity, or create a Web site that looks just like that of a well-known company or charitable organization. If you’re not sure that you’re dealing with the real thing, find another way to contact the legitimate business or charity and ask.Guard your personal information. Don’t provide your credit card or bank account number unless you are actually paying for something. Your social security number should not be necessary unless you are applying for credit. Be especially suspicious if someone claiming to be from a company with whom you have an account asks for information that the business already has.Beware of “dangerous downloads.” In downloading programs to see pictures, hear music, play games, etc., you could download a virus that wipes out your computer files or connects your modem to a foreign telephone number, resulting in expensive phone charges. Only download programs from Web sites you know and trust. Read all user agreements carefully.Pay the safest way. Credit cards are the safest way to pay for online purchases because you can dispute the charges if you never get the goods or services or the offer was misrepresented. Federal law limits your liability to $50 if someone makes unauthorized charges to your account, and most credit card issuers will remove them completely if you report the problem promptly. There are new technologies, such as “substitute” credit card numbers and password programs, that can offer extra measures of protection from someone else using your credit card.
  • Internet Frauds

    1. 1. An INFORMATION TECHNOLOGYFOR BUSINESS MANAGEMENT Presentation Presented By:Hisham Ahmed Rizvi 50269 Drishti Rana 50256 BBS I-B
    2. 2. WHAT IS INTERNET FRAUD?“The term ‘Internet fraud’ refers generally to any type of fraud scheme that uses one or more components of the Internet - such as chat rooms, e-mail, message boards, or Web sites - to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to other connected with the scheme.” Source: US Department of Justice
    3. 3. WHY DISCUSS INTERNET FRAUDS? Complaints received in 2008 Up from about 207,000 in 2007. The total reported dollar loss. $25 million more than in 2007. of Internet users have purchased goods from spam emails lost to phishing attacks in the KEY United States in 2007.STATISTICS Of all emails in Europe are spams. It costed $51.1 billion worldwide.
    4. 4. TOOLS USED FOR INTERNET FRAUDS Email Chat rooms Websites Message Boards Portals Web Application
    5. 5. TYPES OF INTERNET FRAUDSCredit/Debit Card Fraud Business Deceit Recruitment Deceit Counterfeit Cheque Scam Advance Fee FraudNon-Delivery of Goods/Service Fraud
    6. 6. TYPES OF INTERNET FRAUDSSpoofing/Phishing Scam Investment Rip-Off Identity Theft Ponzi/Pyramid Fraud Auction FraudNigerian 4-1-9 Scam
    7. 7. CREDIT/ DEBIT CARD FRAUDThis involves the use of credit/debit card toobtain money or acquire propertieswithout appropriate authorization.Fraudsters obtain credit/debitcard numbers of victims fromunsecured web media anduse them carry out illegal orunethical transactions.
    8. 8. BUSINESS DECEITIn this case, fraudsters masquerade themselvesas genuine business people and attempt tocollect personal information such aspasswords, PIN numbers anddate of birth from respondents,in order to use the data forpurchasing goods whichwould most likely betransferred or shippedout of the country.
    9. 9. RECRUITMENT DECEITGeneric public or private job or recruitmentportals can be used for advertising spurious jobopenings with the intention to collect vitalinformation fromapplicants, and deploythem for purchasinggoods or use for someother illegal purposes.
    10. 10. COUNTERFEIT CHEQUE SCAMSThis entails the use of counterfeit cheque to payfor goods purchased online, such that the facevalue of the cheque would be far higher thanthe requirement; thus theseller would be instructedto return the overageamount to an account.
    11. 11. ADVANCE FEE FRAUDThis is popularly known as 4-1-9. It refers to thetype of fraud in which a substantial amountwould be demanded for payment of processingfees that stand as requirement for release of non-existing merchandise or large amount of money. NON DELIVERY OF GOODS/ SERVICES FRAUDThis refers to scam in which people areencouraged to pay for goods and or service via aweb portal, and thereafter nothing would bedelivered to the buyers.
    12. 12. SPOOFING/PHISHING FRAUDSSpoofing is a type of fraud in which a fraudstermasquerades as another person by usinganother person’s identity to transact businessand obtain vital informationsuch as bank account numbers,credit card numbers andassociated passwords.Phishing is a form of spoofing in which thewebpage of a particular entity can be duplicatedand positioned with url for the purpose of luringpeople to divulge vital financial information.
    13. 13. IDENTITY THEFTThis entails the use of another’s personalinformation without appropriateconsent, for the purpose of fraudulentpractices.Often personal informationmay even be leaked onlineor stolen during websurfing.
    14. 14. PONZI/PYRAMID FRAUDThis is a system of luringinvestors to invest in ascheme in which theinvestment firm promisesabnormally high returns,meanwhile the earlyinvestors shall be paidwith investment capitalobtained from successiveinvestors.The payment chain wouldcontinue till the point ofcollapse.
    15. 15. AUCTION FRAUDIn this auction frauds, people are encouraged toparticipate in online auction and when moneymust has been paid for specific items, thefraudster would send either a lower standarditem or counterfeit.
    16. 16. HOW TO BE SAFE FROM INTERNET FRAUDS?Know who you’re dealing with. Look for information about how complaints are handled. Be aware that no complaints is no guarantee. Don’t believe promises of easy money. Understand the offer.Resist pressure.
    17. 17. HOW TO BE SAFE FROM INTERNET FRAUDS?Think twice before entering contests operated by unfamiliarcompanies. Be cautious about unsolicited emails. Beware of imposters. Guard your personal information. Beware of “dangerous downloads.”Pay the safest way.