Internet Fraud Is a Crime - Report It!!!

It seems to be human nature that if we are defrauded in some way or another and the damage incurred by the fraud is not extensive, we just tend to let it go. I completely understand this and have to admit that I have been guilty of it from time to time. But after speaking with authorities, such as law enforcement agencies, and Internet Fraud Attorneys that enforce Internet fraud laws, I have completely changed my mind set.

There are thousands of people that are committing fraud of one sort or another on the Internet. Every year hundreds of these people walk because of technicalities or evidence against them that is insufficient. If there were more reports and more evidence against these criminals, many of them would not be walking free to victimized other people such as yourself. It's up to all of us to protect our families financial security from these individuals.

If you believe you are a victim of Internet fraud or any Internet crime, contact your local law enforcement agency to see how they recommend moving forward with a complaint. At the very least use the Web services of the FBI and the Internet Crime Complaint Center.

http://www.ic3.gov/

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.

How does the Internet Crime Complaint Center (IC3) follow-up on complaints of Internet fraud?

The IC3 will take a very close look at each Internet Fraud complaint to gain an understanding of which federal, state, local or international law enforcement agency has jurisdiction over your compliant. Depending on the results of this review your complaints will be forwarded to one or more law enforcement agencies. These agencies will normally assign your complaint to an investigator who will contact you if further information is required or if the complaint is resolved. Be sure to include current contact information in the complaint that you file in the event that these agencies need to contact you.

Telemarketing Fraud

I came across a GREAT web site that helps you to become aware, and to defend yourself against telemarketing fraud. It's not Internet Fraud, but because it's affects many of us I felt it would appropriate to add to this site.

The web site covers more than just telemarketing fraud it is http://www.fraud.org/.

The page that caught my eye was -> http://www.fraud.org/toolbox/tools.htm#telemarketing

Are you a nice person, does that make you a target for fraud, probably? Be nice, be respectful but be smart?

An email from a reader told me a story that is to common to many in the internet fraud circles. I am going to be deliberately vague as to names and locations.

A buyer suggesting over payment on an item, with an agreement that the seller will wire them the extra cash. When it all comes down the seller gets burned and the buyer get away with the cash.

Here’s the story -

This woman used a local website similar to craiglist to sell a unique item that she wasn’t at all sure anyone would be interested in. To her surprise she got an email from someone claiming to be in New Zealand. This person wanted the $500 dollar item she was selling, but could only buy it, if she agreed to take a cashier check for more than the amount and wire the cash to the buyer. The reasoning said the buyer, was that thy could not cash the check in New Zealand. Being very nice but also cautious this woman said, “I need to check with my bank and see what they say about this”. She took the cashier check to the bank, the bank looked at it and verified it was authentic and said – yep good as gold you shouldn’t have any problems.


She cashed the check, sent the money by wire to New Zealand and everything was fine….until the check issuer cam back and said the check was no good. This woman who I know personally and is a very nice and very kind person, thought she was doing someone a very big favor. It ended up costing her $2,000 dollars to find out how slimy crooks can be on the internet. In this case the amount of damage wasn’t enough to warrant a Internet Fraud Attorney but she did report the incident to the state police who are build a case file for an ongoing Fraud Investigation related to this type of activity.


There are literally thousand of cases where crooks take advantage of kind-hearted people and rob them blind. Please continue to be kind-hearted but never fall for wiring money to anyone, don’t even start the conversation with them. Just don’t do it, at some point they are going to get the best of you and you will be the one to pay, not them.

The federal trade commission now has a website on what you need to do to protect yourself. http://www.ftc.gov/bcp/conline/pubs/alerts/overpayalrt.htm