A computer keyboard
While the Internet makes communications and access to information much easier for daily life, it also makes information crimes easier to commit, as well. The Internet criminal relies on the gullibility and mistakes of the victim to get away with theft. So every Internet user, young and old, should be aware of the risks of fraud via the Internet before relying on the system for sensitive activities.
What Internet Fraud Is
Internet fraud is any kind of fraudulent crime or scheme that uses technology and the Internet to commit the act. Internet fraud can include multiple types of fraud and related crimes, sometimes more than one criminal activity occurring simultaneously. The criminal profits or proceeds are generated usually by gaining the victim's trust and then accessing their sensitive information and financial accounts. It can occur through websites, emails, chat rooms, forums and message boards, ICQ chat systems, cell phone mobility platforms and even through streaming data such as movies.
Statistics
Internet fraud continues to grow as more and more people use the Internet daily. While fake check scams and retail fraud make up 52 percent of Internet fraud, Nigerian letters and bad auctions or fake money offers make up the remainder. Surprisingly, embedded traps requiring no user action make up very little of the fraud statistics, as of 2007.
Traditional Models of Internet Fraud
These approaches are considered traditional because they use techniques that are used via regular mail, and they are Internet draud because of the use of email or the Internet.
Fraudulent use of credit cards to order merchandise through the Internet and then have it shipped to a criminal's location is the most common type of fraud. Unless merchants check to make sure the card is actually being used correctly, they could find themselves losing merchandise and the sale revenue when the credit card company pulls the charge back.
Automotive-related fraud happens in a similar fashion with the emailed promise of a check for shipping a vehicle. The vehicle gets shipped but the payment is fake, and the seller loses both the car or motorcycle and any profit in the deal. The email scam can also be reversed to get a buyer to wire funds first with the promise of a vehicle that doesn't exist.
The promise of commission is a common scam, better known as a "Nigerian Letter" scam since many of the emails originate from Nigeria. The concept is that someone needs to move money out of a problem country and needs you to temporarily deposit it for them. You get to keep a percentage for your trouble. But you need to pay a fee first to make the deal happen. The fee disappears and the check for the deposit turns out to be a fake.
Electronic Duping Fraud
Much more dangerous to the average Internet user is the electronic duping version of fraud.
Phishing has gained a lot of media attention due to very effective emails asking a reader to click on a link and submit sensitive data, usually a social security number or bank account. These fake emails are usually written to look like they came from an official source, so reader doesn't think it's a trap.
Pharming, similar to phishing, requires a reader to read or activate a web page. The scam works by using a valid website and redirecting the traffic to a bad one. Unlike phishing, which is usually sent on an email, pharming traps can be embedded into a web page, download or data stream like a movie file.
Conclusion
The best way to prevent being a victim of Internet fraud is to avoid submitting confidential data to the Internet. If you must do so, limit such activity to just those websites you know are safe and never respond to an email asking for your passwords or social security number.
Tags: Internet fraud, Fraud Internet, Internet user, security number, social security, social security number