Top 5 Crimes/Scams on the Internet and How it Works

Top 5 Crimes/Scams on the Internet

1. Internet Auctions

Internet auction scams account for 75% of all complaints registered with the FBI’s Internet Crime Complaint Centre. With internet auctions gaining tremendous popularity since its first appearance in 1995, it was only a matter of time before people got tricked. Scammers have been cashing in on the fact that most people don’t understand exactly how these auctions work, and how to take part without being taken for a ride.

How it Works

You find an amazing deal online and rush to auction for it. After sending the money, you receive an awful piece, or worse, absolutely nothing at all!

2. Phishing Scams

Phishing represents an attempt to fraudulently acquire sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication (Source Wikipedia). With a slight variation, a new kind of financial fraud has hit the market lately. It’s called ‘vishing’. It involves an individual getting an email or a call from a number saying his bank accounts have been deactivated due to an unauthorised transaction.

The email or the call also asks him to call up a phone number to get this rectified. Falling for this trap, the individual ends up calling up the number and sharing his confidential information over the internet, landing himself in trouble and losing a huge amount of money due to his carelessness.

3. ‘419’ Letter Scams

The Nigerian Advance Fee scam, better known as the ‘419’ Letter scam has been around since the early 80s. Millions have fallen for this scam and the count just keeps getting bigger. Victims of the Nigerian 419 letter scam lose USD$3000 on an average, according to the FBI. If you’re wondering what 419 signifies, it’s the section of Nigeria’s penal code that the fraud violates.

How it Works

You receive an email from an alleged official representing a foreign government or agency, who says he’s seeking an accomplice to transfer embezzled funds for a big percentage. You would be asked to travel overseas to complete the transaction.

You would then receive several documents with fake official stamps testifying to the authenticity of the proposal. To clinch the deal, you would be asked to pay thousands of dollars in advance, which would go straight to the scammers

4. Postal Forwarding/Reshipping ScamsPostal Forwarding / Reshipping scams involve the receiving and reshipping of merchandise bought online to overseas locations by gullible people hoping to make quick bucks. The catch is that the merchandise has been paid for with stolen or fraudulent credit cards by the scammers. These are scams which often start in singles online chats, where people are fooled into co-operating with the scammer

How it Works

You would be required to provide all your personal information to finalise the deal. Once the deal is on, you immediately begin receiving packages and are then responsible for reshipping the merchandise to some overseas location.

You would make good money for a while, but soon enough you would find your account emptied by the scammers.

5. Lottery Scams

Lottery scams have been increasing at an alarming rate because they succeed in tricking people the best. These scams vary with regard to the ‘prize’, the country of origin, the sponsoring organization and so on.

The scammers fool users by showcasing popular financial institutions and government departments on their websites. They also provide links to genuine looking websites that are designed to back up information included in the scam mails

How it Works

You receive an e-mail saying you that you’ve won an amazing prize and all you need to do is visit a website and give your personal information to get your prize shipped. You end up getting nothing and find your money disappearing quickly from your account

Barry Stamp, co-founder of the Credit Reporting Agency and author of the Identity Theft Kit, gives ten tips on how you can prevent online fraud

1. When you are online, don’t use the same password everywhere

Don’t be one of the six per cent of people who use ‘password’ as a password and then leave themselves wide open to identity theft.

2. Don’t reveal your place of birth unless it’s really Necessary

Banks and building societies often use your place of birth or your mother’s maiden name to confirm your identity, so identity thieves would love to get hold of this, and any other relevant, personal information.

Pp Don’t ever reveal your PIN number to anyone Try

to memorise it rather than write it down.

Pp Check your bank statements and credit card statements carefully

Always ensure that there has been no suspicious activity on your cards. Think about using a separate credit card to use in petrol stations and restaurants, where the risk of credit card cloning is high. It’s easier to thoroughly check a separate statement which contains only high risk transactions.

Pp Ignore all phone calls and emails purporting to come from your bank Your

bank will always write to you regarding any important matters.

Pp Make sure that you know when to expect your bills and bank statements to arrive

Don’t let thieves redirect or steal them for their fraudulent use.

7. When buying online, always ensure that the payment pages are secure

If the site isn’t a reputable brand name, make sure that the company uses an approved payment provider, such as PayPal or WorldPay.

8. Keep a copy of all your transactions

Internet banking is a great way of monitoring your spending.

9. Try to keep your credit level low

If your identity does get stolen, thieves won’t be able to run up thousands of pounds of debts.

Pp Check your credit reports regularly to see whether your credit standing has been abused

www.annualcreditreport.co.uk also provides a completely free credit file monitoring service.