Recognize Internet Fraud
By Kristi Vaughan
The use of computers for commerce and information sharing is increasing. But, unfortunately, so, too, are the opportunities for criminal activity. Are you vulnerable?
The first step in protecting yourself against Internet fraud is to know some of the schemes that are being used.
Phishing
One of the newest Internet scams is something called phishing, where the swindlers use what appear to be legitimate e-mails and Web sites in an attempt to steal Internet passwords, credit card numbers and other key information. Through various methods, often with an element of urgency or fear, these e-mails and Web sites deceive readers into releasing these critical numbers. U.S. Department of Justice officials and others advise Internet users to follow three simple rules if they receive an email asking for account or other personal information:
- Stop - Do not react immediately to what appears to be alarming information. Check it out more closely.
- Look - Look at the claims being made and decide if they make sense. For example, your bank and credit card company already know your account number, so why would they need you to verify it?
- Call - When in doubt, call the company that is supposedly making the request. If the e-mail was part of a phishing scheme, your credit card company or bank will be glad you checked. And so will you.
Top Ten Scams
According to the National Consumers League, which sponsors the National Fraud Information Center/Internet Fraud Watch, there are 10 key Internet scams that can affect individuals and businesses. Most of the contact (95 percent in 2003) is made through Web sites.
The scams and the percentage of complaints they represented in 2003 as reported by NFIC are:
- Auctions (89%) - Goods and services were never delivered or were misrepresented
- General Merchandise (5%) - Goods not delivered or not as advertised
- Nigerian Money Offers (2%) - False promises of riches if consumers pay to transfer vast fortunes to their accounts
- Information/Adult Services (1%) - Services never provided or cost misrepresented
- Internet Access Services (1%) - Services never provided or cost misrepresented
- Computer Equipment/Software (.2%) - Computer products never delivered or misrepresented
- Work-at-home Plans (.2%) - Kits sold on false promises of big profits from working at home
- Lotteries (.2%) - False promises to help consumers win money or claim winnings from foreign lotteries
- Fake Checks (2%) - Consumers are paid with phony checks for items they’ve sold or work they’ve performed, with instructions to wire some of the money back to the con artists
- Advance Fee Loans (.1%) - False promises of personal or business loans, even if credit is bad. Fee charged up front
Protect Yourself
Common sense can go a long way in protecting you against Internet fraud. Start by knowing who you are dealing with, being suspicious of offers that seem too good to be true and protecting your personal information. The National Consumers League’s Internet Fraud Watch and the U.S. Justice Department offer tips and other informtion on protecting yourself against Internet fraud.
