How common is Internet Fraud?

It's always hard to sort through FUD and reality when it comes to Internet Fraud and Internet Security issues. The following article at CBS News seems like a preety realistic source since the information comes from the FBI and directly quotes losses and different fraudlent activity.

http://www.cbsnews.com/stories/2003/05/16/national/main554237.shtml

Bottom, line is Internet fraud is real and that you as a a consumer need to be smart. It's not difficult to check something out on the web before you buy it. Take the following steps before you purchase anything from the web. And remember, if it seems too good to be true, it probably is...Yep I'm quoting my dad again.

This and more advice can be found on the www.fraud.org website.

-Don’t shop online while using an unencrypted or open wireless network. Hackers and thieves can use your open/unencrypted or a store’s wireless network to break into your computer and capture your financial information.
-Secure your computer before shopping online. Before connecting to the Internet or shopping online, take the following three core protections: 1) Install anti-virus and anti-spyware programs and keep them up to date; 2) Install a firewall; 3) Regularly update operating software.
-Know who you’re dealing with. Before shopping online with an unknown e-store, check out the seller and be sure to get the name and physical address of the seller in case something goes wrong. If you’re buying gifts on an online auction site, check the track record of the seller before you bid.
-Don’t give away your financial information to unsecured websites. Make sure when providing payment information, the beginning of the Web site URL address changes from http to shttp or https, indicating that the purchase is encrypted or secured.
Protect personal information with common sense and technology. Be suspicious if someone unexpectedly asks for personal information. Identity thieves send out bogus emails about problems with consumers’ accounts to lure them into divulging personal information. Consider using multi-factor authentication services when offered by online retailers as a way to secure your information.