Internet Fraud Explained by anamaulida


        To express it generally, Internet Fraud is any fraud scheme that
uses the one or more components of the Internet. Websites, chat rooms,
emails, message boards and even instant messaging facilities are some of
the many components of the Internet used to conduct Internet fraud these
days. Unfortunately, due to the speed at which the internet and all of
its increasing capabilities are expanding it is getting increasingly
difficult to keep up with the Internet scams out there. According to the
FBI, “Internet auction fraud was by far the most reported offense,
comprising 44.9% of referred complaints. Non-delivered merchandise and/or
payment accounted for 19.0% of complaints. Check fraud made up 4.9% of
complaints. Credit/debit card fraud, computer fraud, confidence fraud,
and financial institutions fraud round out the top seven categories of
complaints referred to law enforcement during the year.―  Effectively,
this means that almost ½ of the fraud complaints out there originate
from Internet transactions. Of the Internet fraud present out there,
some of the main types include the following:Credit Card Schemes -
Involves the use of fraudulent or illegally obtained credit card numbers
to purchase services or goods on the internet.Investment Schemes -
Involves the use of the internet, spam emails and fraudulent company
information to inflate or deflate the stock price of a public company in
order to profit without the Buyer or Seller being aware. Â Identity Theft
- Involves using the personal details of someone other than you without
the knowledge of said person to obtain funds whether they are through
credit card applications, bank loans or other.Business Opportunity -
Involves the promoting of a business opportunity scheme (typically
“Work from Home― scheme to exact monies from unknowing victims for
business materials or information to enable the Work from Home experience
but fail to deliver said information in the end.Auction / Wholesale -
Auction and Wholesale purchase scams are some of the most prevalent scams
operating currently. Typically these schemes offer seemingly
unbelievable prices for quality genuine goods but often either fail to
deliver or deliver counterfeit goods instead, if at all.Whilst it is
becoming increasingly difficult to avoid internet fraud, particularly if
you are firm on getting the best deal ever, there are a few measures that
you can take when approaching your transaction online. Â Reducing
Internet Auction Fraud-Â Â Â Read and understand entirely the details of
the auction, how payments work and all costs involved. All facets of
the transaction should be understood before you make your first bid.-
   Learn about the buyer protection offered by both the site and the
Seller. If you are unsure about any of the procedures then email the
respective party involved and keep the correspondence as your proof
incase problems arise and they need to be provided.-Â Â Â Gather as much
information as possible about the Seller. eBay and similar auction
websites often provide the facility to obtain Seller information once you
have won the auction, but it is often better (if possible) to obtain this
information before you place your first bid. Check with country
relevant authorities for business registration information.-Â Â Â If
possible, use a payment method that offers you levels of security
including chargebacks and refunds. Major credit cards and similar
payment facilities such as 2CheckOut and PayPal offer facilities to
dispute purchases and assist in payment recovery. Â -Â Â Â Escrow
services can provide incredible peace of mind when dealing with larger
transactions due to payments being held until the satisfaction of the
Buyer ultimately releases the funds. Â Reducing Business Fraud-
   Typically regarded as Wholesale fraud, this business to business
fraud occurs when a smaller business attempts to purchase significantly
reduced-priced stock from a larger Company with infinitely greater
“buying power―.-   Research the company you are intending to
trade with. Be sure to read through as much information as possible
about the company obtained through your search engine results. Be
careful to discriminate between useful information and those posted by
merciless competition as you may be missing on a genuine good
deal. Overall, if you find yourself presented with several instances of
“business fraud―, chances are you might be next if you proceed
further.-Â Â Â Be weary of businesses operating with free email
addresses. This is not to say that they aren’t legitimate, just
proceed with caution. Most successful businesses with developed
websites will often have their own domain in their email address, and not
and hotmail or yahoo extension.-Â Â Â Once you find contact information
of a business, try to communicate with them along these channels to be
sure that they are active and not simply random numbers or email
addresses included in an attempt to alleviate your anxiety before you
purchase.Reducing Investment Fraud-Â Â Â Do your research before
investing in a company. Check with the relevant authorities as to the
legitimacy of the enterprise, the Website alone is not enough. Â -
   Be wary of unscrupulous emails claiming to provide any kind of
opportunity to make money. Scammers well versed in the art of conning
you out of money will often request only a small amount at first. Â -
   If you are thinking of investing your hard earned money into the
cause, be sure you acquainted with all of the terms and conditions of the
investment. The investment may turn out to be real but you may
ultimately receive much less than expected due to the clauses in the
terms and conditions.Reducing Credit Card Fraud-Â Â Â Do a background
check on the site you are purchasing from before you enter in your
details.-Â Â Â Check to see if the site is secure on the page you are
entering your credit card details on – usually indicated by a padlock
in the right-hand corner of your web browser. Â -Â Â Â Verify the
business information provided by the company in their contacts page.
Check to see whether they have an actual physical address, phone numbers
and valid email address.-Â Â Â If possible, use a payment method that
offers you levels of security including charge backs and refunds. Major
credit cards and similar payment facilities such as 2CheckOut and PayPal
offer facilities to dispute purchases and assist in payment recovery. Â -
   If any part of the transaction appears questionable you should
contact your card provider immediately so they can monitor the
transaction.In the unfortunate instance that you are adversely affected
by a fraudulent internet based scam, you can file a complaint online
directly with the Internet Fraud Complaint Center
( – a joint initiative by the FBI and the
National White Collar Crime Center. Â As frightening as I may have made
it appear to trade on the internet, there are definitely bargains to be
found. With effectively billions (if not trillions) of dollars traded
as a result of internet transactions daily, there are certainly profits
to be made out there. Remember, if a transaction looks too good to be
true, it usually is. Always proceed with caution.
Article Resource:
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