Any fraudulent solicitation of money, information or things of any value by means of email, websites, bulletin boards, blogs can be considered internet fraud.
Internet Fraudsters keep on finding new methods of using the Internet to scam innocent consumers and online users, which is said to be the common targets. This fraud is very popular because of its anonymity and less risk involved. Added to the fact that not so many countries are already ready to face this disaster and have strong policies and law to pursue
the case against the suspected fraudster
Fraud on the Internet includes, but is not limited to: fraudulent or fake web sites, untrustworthy websites, phishing (fishing) for personal information with fraudulent emails, Online auction frauds - buyers and sellers, increased Nigerian 419 Advance Fee Fraud, Lottery Advance Fee Scams, Business Opportunities & Work from Home Scams, International Modem Dialing and Cramming, and credit card fraud. Advertisement
But the most common and most successful is done through the use of stolen credit card information, which was obtained in many ways: Worms that contains malicious code to extract information from the infected computers. Copying of information from retail sites that are not secured. Installation of keyloggers and monitoring software to targeted computers.
There has been numerous increase in types of frauds that gain personal information, which is then used or sold for the purpose of identity theft. Advance Fee Fraud, where cash is required from a consumer before a payout of millions from lotteries or Nigerian business proposals, is used for two purposes. If the fraudsters are lucky enough to scam the consumer out of cash, then that is a small bonus to compliment the personal details they have extracted from the
consumer - these can include bank account and credit card details, passport numbers, social security numbers etc. Identity Theft goes hand in hand with Internet Fraud. See our section on Identity Theft, and how you can protect yourself.
In some cases Internet fraud schemes originate domestically (in the U.S.). But a significant proportion of organized Internet fraud seems to come from Africa, particularly Nigeria and sometimes from Ghana and Egypt. Some originate in Eastern Europe, particularly Romania, and Southwest Asia. For some reason, many fraudulent orders seem to originate from Belgium, from Amsterdam in Holland, from Palestine and from Malmo in Sweden. Lately, some fraudulent orders seem to originate in China.Some fraudsters approach merchants asking them for large quotes. After they quickly accept the merchant's quote, they ask for wire transfer information to send payment. Immediately, they use online check issuing systems as Qchex that require nothing but a working email, to produce checks that they use to pay other merchants or simply send associates to cash them out.
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