With ever
growing reliance on the Internet, computers have not only changed the way
business is done, they have also influenced methods used by scammers. Online
fraud has become an increasing problem for both law enforcement agencies and
civilians.
Tracking
hackers is tough and catching these internet fraudsters red-handed is even
tougher. Identifying theft, virus and other intrusions or a carefully planned
approach to steal your money online can be hard. To help you out, here are the
common types of online fraud you need to be aware of.
#1 Internet Auction Fraud
In this
type of online fraud, the scammer targets online shoppers on auction sites such
as eBay. The aim is to post a product on sale to the highest bidder, and
unfortunately, the product is non existent or not as it was described. In
direct violation of this, the scammer will try to get the complete payment from
the winning bidder before the “shipment” is made. Either the merchandise will
never show up or it will be of inferior quality and much lower in value than
otherwise promised.
#2 Spam and Identity Theft
Spam is the most common type of online fraud. The scammer collects an entire list of valid
emails and bulk mails them to corrupt people's computers, steal identities or
push innocent people into paying for fake products and services. Spam messages
also contain “irresistible” offers such as lower interest loans, sweepstakes,
free credit report checks or even relationships with singles. Scams then
encourage people to open the message and click on the link thereby opening the
computer to virus, worm or bug that corrupts the computer. The bug may also
attempt to sniff out passwords, SSN numbers, credit card information or more.
#3 Credit Card Fraud
This scam
needs a person to register or use credit cards on a scam website. The site may
claim to sell products or services. When trustworthy vendors ask for credit
card information, not only will they not store it without the permission of the
user, they will also ensure that the information is safely stored. But scammers
will ask for the same information, steal it and perpetrate an online
fraud.
#4 Investment Fraud
This is a
form of online fraud where the scammer will either use a newsletter or website
to attract others with promises of insider information on stocks for a fee and
offer false data rather than real information. Another online fraud is to pump
people with information so that they invest in a certain stock and the stock
value rises.
#5 Online IP Theft
Intellectual
property rights are an important issue. Exclusive rights to publish, use or
sell the material are granted to the author. But because the information is
freely available for anyone's use, people can lift and copy the information
using it without the writer's permission. This is the most common form of
cybercrime and online fraud carried out in present times.
These are
some of the most common types of online frauds. People have become so oriented
towards money that they are often blind to the glaring security traps these
fraudsters lay for them. In a data driven world, where technology rules, and
efforts have always been made to ensure the internet helps mankind, the very
opposite seems to be happening, with online scammers on the prowl.
