Fraud
schemes that victimize customers and investors have been online for some time
now. The creation of the Internet and the explosive growth of the World Wide
Web has presented e-scammers with the golden opportunity to trick people online
into parting with money. Online criminals have perpetrated internet fraud
schemes to siphon off money through a vast majority of e-commerce routes. Read
more about the types of internet fraud here.
Internet Fraud #1: Auction and Retail Scams
As per the
FTC, fraudulent schemes appearing on online sites for auctions are among the
leading form of internet fraud. Schemes purport to offer high value items that
are likely to interest consumers. Schemes induce victims to send money for
promised items, and deliver nothing or only an item far less of value than that
which is promised. Counterfeit or altered goods may also be send in the place
of legit products.
Internet Fraud #2: Work At Home Schemes
Fraudulent
internet scams use online work at home ventures to advertise business
opportunities. These schemes, instead of providing paying jobs, actually ask
for money for training kits. The information is never imparted or is given in
such a way that it does not make the work at home opportunity a viable
business.
This type
of internet fraud usually involves identity theft. This involves using someone
else's personal data in the specific ways that involve deception or fraud, for
economic gain. This may include names, SSN numbers, bank account or credit card
details and more. Car loan applications were stolen to collect personal data in
one such case of an identity theft scam.
Internet Fraud#4: Investment Schemes Online
Enforcement
actions by the SEC and criminal prosecutions use two basic methods for
manipulating securities market for personal profit. These schemes disseminate
false information to cause dramatic rise in price to realize substantial
profits before the stock price falls. Such stock price manipulation based on
rumors and gossip result in pump and dump schemes. The aim is to realize
substantial profits before the stock price falls to a low level. Buyers of
stock unaware of how fake the information is become victims of the scheme once
there is a price fall.
Internet Fraud #5: Telemarketing Scams
Other
fraudulent investment schemes combine the internet with mass marketing
technology to reach potential victims. Partnerships may be proposed involving
hi-tech investment which are actually a way to just defraud victims of millions.
Internet Fraud#6: Credit Card Scams
Certain
internet fraud scams appear to be variations to online auction schemes
including credit card theft or unauthorized use of details to order goods and
services online.
High value
consumer items may be offered at extremely low prices. When potential customers
contact the seller, they may either be met with no response, or worse, stolen
credit card details which are then used to make off with money or buy products
online.
These are
just some of the common types of internet fraud. The essential point here is
that you need to be alert or you could end up being a victim or even an
unwitting accomplice. Check all the details carefully before taking the plunge,
when it comes to commercial transactions.
