Internet Scams, Identity Theft And

Internet Scams, Identity Theft andCommon Online Misconceptions:Are You At Risk?
“If a scam exists in the real world but it’s not yet on the Internet, just wait two hours…”
- Anonymous

Agenda:
Why Is The Internet So Attractive To Scammers?
Top 5 Scams on the Internet
“The Nigerian Letter”
5 Things You Can Do to Avoid Getting Scammed
Haiti Earthquake Scams to Watch Out For
Online Resources

Why Is the Internet So Attractive To Scammers?
Anonymity.
It’s very easy to hide your identity, making it difficult for others to figure out who you are.
Example: Many of the “Free Viagra” type emails are sent from overseas Internet Cafés that don’t require identification to use computers, making the users anonymous.
Source: “The Best of Internet ScamBusters”

Low cost
It costs just a few dollars a month to get an email account, Internet connection and website, and with that, someone can cause a lot of grief.
Internet is very inexpensive compared to other methods of committing fraud.

3. Internet’s rapid expansion provides a large base of new users to exploit.
These new users are unaware of common scams and how to protect themselves.
WORLD INTERNET USAGE
Growth From 2000-2009:
+ 380.3 %
Source: http://www.internetworldstats.com/stats.htm

Many of the scams on the Internet are either similar or identical to those in the real world.
Often having been developed over many years, and are often very difficult to detect.
Unfortunately, these signs are hard to find.

#1
Auction Fraud
Source: http://www.pcworld.com/article/119941/top_five_online_scams.html

#1 Auction Fraud
The Set Up: You win an auction and send in your money and get nothing but grief in return.
What Actually Happens: You never get the product promised, or the promises don't match the product.
[example]

#1 Auction Fraud
The Risk: You get ripped off, losing time and money.
The Question You've Got to Ask Yourself: Who in their right mind would sell a $200 bag for $20?

#2
Phishing Scams
According to Gartner, phishing scammers took consumers for $1.2 billion in 2003.
Source: http://www.pcworld.com/article/119941/top_five_online_scams.html

#2 Phishing Scams
The setup: You receive an e-mail that looks like it came from your bank, warning you about identity theft and asking that you log in and verify your account information.
What actually happens: Even though the e-mail looks like the real deal, complete with authentic logos and working Web links, it's a clever fake. The Web site where you're told to enter your account information is also bogus.

#2 Phishing Scams
The risk: Your account information will be sold to criminals, who'll use it to ruin your credit and drain your account.
The question you've got ask yourself: If this matter is so urgent, why isn't my bank calling me instead of sending e-mail?
21 percent of spam is phishing fraud.

#3
Nigerian 419 Letter

#4
Postal Forwarding / Reshipping Scam

#4 Postal Forwarding / Reshipping Scam
The setup: An offshore corporation needs you to take goods sent to your address and reship them overseas. You collect a percentage of the goods or amount transferred.
What actually happens: Products are purchased online using stolen credit cards and shipped to your address. You then reship them to the thieves, who will fence them overseas.

#4 Postal Forwarding / Reshipping Scam
The risk: Sure, you can make big bucks for a while. But after a few months, when the feds come looking for the scammers, you're the one they're going to nail.
The question you've gotta ask yourself: Why can't these people receive their own darn mail?

#5
"Congratulations, You've Won an Xbox (IPod, plasma TV, etc.)"

#5 ‘You’ve Won X’
The setup: You get an e-mail telling you that you've won something cool (such as an Xbox or an iPod). All you need to do is visit a Web site and provide your debit card number and PIN to cover "shipping and handling" costs.
What actually happens: The item never arrives. A few months later, mystery charges start showing up on your bank account. The only thing that gets shipped and handled is your identity.

#5 ‘You’ve Won X’
The risk: Identity theft, as well as lost money if you don't dispute the charges.
The question you've gotta ask yourself: When did I enter a contest to win an Xbox (iPod, plasma TV, etc.)?

The Nigerian Email / Letter
Also called the 419 fraud, Nigerian scam, Nigerian bank scam, or Nigerian money offer
Advance Fee Fraud
Began in 1992
Over $10B in losses worldwide
419 scam has risen to 7 percent of all spam.

The Nigerian Letter
The Con: Get victim to advance funds in exchange for large reward (over $1MM).
Excerpt:
$4,000,000 for 15 minutes of work!!

The Nigerian Letter
The Con: Create a sense of urgency

If the victim agrees to the deal, the other side often sends one or more false documents bearing official government stamps and seals.
Eventually you must provide up-front or advance fees for various taxes, attorney fees, transaction fees or bribes.
Only more requests for fees come.
Delay after delay, more fees, no money

An advance-fee fraud is a confidence trick in which the target is persuaded to advance sums of money in the hope of realizing a significantly larger gain.

Victims lost at least US$9.3 billion last year worldwide, up from $6.3 billion in 2008.
The top three countries for AFF losses in 2009 were the US at $2.1 billion, UK at $1.2 billion and China at $936 million.
Gotten so out of hand that Microsoft has developed Microsoft Internet Safety, Security and Privacy Initiative for Nigeria (MISSPIN)
Source: http://www.ultrascan-agi.com/public_html/html/pdf_files/419_Advance_Fee_Fraud_Statistics_2009.pdf

Other Advance-Fee Frauds
Black money scam
First appeared around the year 2000
Scam: Email arrives saying that you are the heir to certain assets, including a trunk filled with cash stained with black ink.
Scammers request payment for taxes, lawyers fees, etc., plus the chemicals to ‘wash’ the cash.
Of course, there is no truck and no cash 
Source: http://en.wikipedia.org/wiki/Black_money_scam

Other Advance-Fee Frauds
The Spanish Prisoner scam
First appeared in the early 1900’s
The Spanish Prisoner is a 1997 American suspense film named after this con
The Scam: a confidence man tells his victim that he is in correspondence with a wealthy person of high estate who has been imprisoned in Spain under a false identity. In exchange for cash to bail out the wealthy person, the victim gets a large reward.
Unfortunately, it turns out that there is no wealthy prisoner.

Use common sense.
If it seems too good to be true, it probably is.
If you have a gut feeling that something isn’t legitimate, you’re probably right.

If possible, always pay by credit card rather than by check or money order.
If you use your credit card to make a purchase and you encounter a problem you can notify the bank that issues your credit card that you are disputing the charge.

Take safety precautions.
Be especially careful with passwords.
Use a combination of letters and numbers.
Be careful about private information you give out on the Net
Social media websites “I’m going to Bali for 3 months”
Don’t let people use your computer unsupervised.
And think about what’s on the computer before you make that decision.

Be skeptical.
When you’re shopping online, always check out the company.
Ask for references and check them carefully. A reputable company will be pleased to provide you with lots of references.
Only do business with companies that offer a strong guarantee and/or warranty.
Ask the company what will happen if you want to return the product or service. Reputable companies offer strong guarantees and stand behind their products, especially online.

Be very careful at online auction sites.
If you want to buy something at an online auction:
Always check the references of the seller
Only buy from sellers who have good references.
If the item is more expensive than an amount you could comfortably lose, consider using an online escrow service. eBay recommends www.escrow.com for U.S. and Canadian users.

Charity Relief Scams:
Be very skeptical of all requests for aid, whether via email, social networking sites, phone calls, or face-to-face.
Check out the charity carefully.
Never donate cash.
People Search Scams:
Due to the number of missing people, spam email that offers to find loved ones who may be disaster victims for a fee can be a scam.

Variants of the Nigerian Scam:
These junk emails will relate to retrieving large amounts of money tied up in Haiti in the devastated areas.
You'll be offered a percentage of millions of bogus dollars to help retrieve these fortunes.
Delete these emails.
Sales of Unrelated Products:
Spam that tries to somehow tie sales of Viagra and other products to the earthquake. Delete these emails.

Remember…
If you follow these tips, you can avoid becoming a victim of online scams.
Always use common sense.
Never respond to an email request for money, a donation, etc.
Do not respond to unsolicited emails offering business opportunities. Especially from unknown individuals.
You must not be asked to pay in advance for services. Pay services only after they are delivered.
Always take your time making a decision. Legitimate companies won't pressure you to make a snap decision.
Check to make sure any business or charity is legitimate. The Better Business Bureau has a very useful website for you to check out businesses and charities.
Don't pay for a "free prize“.
Never send money or give out personal information such as credit card numbers and expiration dates, bank account numbers, dates of birth, or social security numbers to unfamiliar companies or unknown persons.

Online Resources
ScamBusters.org
Better Business Bureau
FBI.gov
FTC.gov
Google

Thank You!!

Internet Scams, Identity Theft And

by Corey Quinn on Mar 02, 2010

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Internet Scams, Identity Theft And — Presentation Transcript