Watch Out For That Scam

The IFCC (Internet Fraud Complaint Center) received over 200,000 complaint submissions for 2004, an increase of 66.6% from 2003. The total dollar loss from all referred cases exceeded 68 million dollars, an average loss of $894 per complaint. There are many types of internet frauds that exist including auction, email, foreign investment letters and online dating. Here are some ways to identify a possible scam or fraud that you may have encountered while surfing the internet.

Auctions

Auction sites are one of the best places to purchase and sell items. They are also one of the easiest places to become an internet fraud victim. Auction fraud represented 71% of the total referred fraud complaints. How the scam works is that you win the auction, but never receive the item. Most of the time the auction site cannot assist you in recovering the money stolen. They will remove the member's account and disqualify the member's email address from their site but are not able to do much else. It is in your best interest to research each seller before making any purchases. Auction sites have a rating system for their members and I would advise you to check this and their profile for certain clues. The first is to check how many sales have been completed and the response from the buyers. I would suggest no less than a hundred transactions for moderately priced items (less than a hundred dollars). A scammer will become a member and sell fifty items for a dollar or less usually in a week or two to build up his member rating. Then they will post twenty auctions ending within a day of each other for items that retail for over a hundred dollars but they are selling them for an unprofitable amount. Again, research a seller's auction history before placing your bid. Also, if Western Union or similar is stated to be the only form of payment, move right on to the next auction.

Fraudulent Email

Email is a great form of communication and also an easy target for schemers. Electronic mail is the primary mechanism by which a perpetrator makes contact representing 63% compared to just 7% by phone. Fraud victims will receive an email with a link stating that their account information needs to be updated. Upon clicking on the link you are taken to a page that looks almost identical to the member page and asks you to enter in your name, address, social security number, checking account routing number and/or credit card number. When you hit the submit button, your information is instantly shuttled to someone waiting to separate you from your money. Before submitting your information, verify that you are truly on the site that the link states it is taking you.

Foreign Investment Letter

Another popular email scheme is an email from a foreign country stating that they have millions that need to be transferred to the United States but need a bank account to finalize the transaction. The sender of the email is willing to give you a percentage of the amount transferred in exchange for using your bank account. Never submit your social security number and checking account or credit card number via an email or an unfamiliar website. This is also known as Nigerian letter fraud and among one of the highest dollar loss frauds with an average of $3000.

Online Dating

You would also be surprised how easily people give their hard earned money away to people they meet over the internet but not in person. The victim meets someone in a chat room or message board and builds a friendship with the perpetrator who usually sends the victim a picture of an attractive person. When the time comes to meet, the schemer admits to not having the money for airfare and expenses, so the victim sends the money via Western Union or similar money transfer service, never to hear back from the person again.

Avoiding Scams

Here are a few ways to avoid becoming a victim of a scam:

  • Do not disclose your social security number, credit card or banking numbers to anyone you do not feel comfortable with.
  • Check with the Better Business Bureau (BBB.org) and Scambusters.com before making a purchase from an unfamiliar website and company.
  • When purchasing items online avoid force seller tactics. If they can't wait, then tell them you're not buying. Whenever possible, use escrow. Escrow is a third party who holds the money until the item or service has been delivered to the buyer.
  • Avoid Western Union or similar forms of payment at all costs.
  • Most importantly, do your research.

    • Please visit the IFCC or view the annual report at http://www1.ifccfbi.gov/strategy/statistics.asp for more information about internet fraud.

    James Junior is a freelance writer and web programmer for http://www.jccorner.com

    In The News:

    pen paper and inkwell


    cat break through


    Remove Rogue Desktop Icons Created By Spyware

    If you have used a Windows machine for a while,... Read More

    Clown Internet Scam - An Internet Scam is Currently Targeting Clowns and Other Entertainers

    I am the victim of an internet scam. It is... Read More

    Another Fine Mess!

    I'm in the Anti-Spyware business, and I'm doing a lot... Read More

    40 Million People Hacked - YOU as Identity Theft Victim

    Saturday, MasterCard blamed a vendor of ALL credit card providers... Read More

    Is The Internet Over Regulated

    Today's Internet or World Wide Web is being over regulated.But,... Read More

    3 Steps to Ending Scams and Virus Problems

    Watching how the traditional media covers the latest virus or... Read More

    All About Computer Viruses

    Your computer is as slow as molasses. Your mouse freezes... Read More

    Phishing - Learn To Identify It

    Phishing: (fish'ing) (n.)This is when someone sends you an email... Read More

    Message Board Security Problems

    Security leaks can be a big problem for any site... Read More

    Protection for Your PC - Painless and Free!

    Viruses, Bugs, Worms, Dataminers, Spybots, and Trojan horses. The Internet... Read More

    Dialing Up a Scam: Avoiding the Auto-Dialer Virus

    For many, the daily walk to the mailbox evokes mixed... Read More

    Temporary Internet Files - the Good, the Bad, and the Ugly

    A little bit of time invested into learning about internet... Read More

    Email Hoaxes, Urban Legends, Scams, Spams, And Other CyberJunk

    The trash folder in my main inbox hit 4000 today.... Read More

    Free Ways to Tackle Threats to Your Computer

    Protect Your PCHaving problems with your pc? Do your kids,... Read More

    Dont Allow Hackers to Take Out Money from Your Bank Account

    If you know what is the 'Fishing' then it's very... Read More

    A New Era of Computer Security

    Computer security for most can be described in 2 words,... Read More

    Top Five Online Scams

    The top five online scams on the Internet hit nearly... Read More

    Arming Yourself Against Spyware

    While clicking from site to site on the internet you... Read More

    Phishing

    Recently I have received email from my bank/credit Card Company,... Read More

    Securing Your Accounts With Well-Crafted Passwords

    In the past I've never really paid much attention to... Read More

    What Can Be Done About Spyware And Adware

    Having a good Spyware eliminator on your computer is vital... Read More

    Secure Your PC From Hackers, Viruses, and Trojans

    Viruses, Trojans and Spyware: Protecting yourself.No user on the internet... Read More

    Are They Watching You Online?

    When surfing the Internet you probably take your anonymity for... Read More

    Do You Know What your Kids Are Doing Online?

    It's a sad statistic, but hundreds of unsuspecting kids are... Read More

    Internet Privacy

    Over the past few years as the internet has become... Read More

    Ransom Trojan Uses Cryptography for Malicious Purpose

    Every day millions of people go online to find information,... Read More

    How To Be Your Own Secret Service Agency

    So you want to know who your kids are chatting... Read More

    Just Whos Computer is this Anyway?

    Well, this is an article I never thought I would... Read More

    Lottery Scam, What It is and how to Avoid It?

    Internet scams and frauds are on the rise! The quantity... Read More

    Hacked: Who Else Is Using Your Computer?

    A friend called me one day and asked if I... Read More

    Types Of Computer Infections

    Computer infections can be broken up into 4 main categories... Read More

    New Mass Mailing Spamming Internet Trojan for the Windows Platform

    May. 16th 2005 - MicroWorld has reported the discovery of... Read More

    How Spyware Blaster Can Protect Your Computer From Harm

    By browsing a web page, you could infect your computer... Read More