The Internet is a natural breeding ground for scam artists and criminals because it lends itself to anonymity. Perpetrators can hide very effectively by “spoofing” or quickly changing their email address, and/or by using offshore or “zombie” computers. A “zombie” is a computer with a Trojan-horse installed. The Trojan lets the Trojan owner access the computer remotely. Now it can be used as a staging ground for anonymous attacks on other computers. Email spam and bogus websites are often used to perpetrate fraud.
The following is a list of scams and fraud causing victims millions of dollars.
- NEW CREDIT CARD PHONE SCAM - Click here to read more.
- 809 PHONE SCAM – The Federal Communications Commission (FCC) has become aware of a long distance phone scam that may lead consumers to inadvertently ring up high charges on their phone bills. Click here to read more. (you will be redirected to the FCC website)
- NIGERIAN 419 SCAM – Named after its Nigerian criminal code, the “419″ scam has circulated for years through snail mail, fax, and email. The US Secret Service, who refers to it as the Nigerian Advance Fee Fraud, has dedicated an entire section on its Financial Crimes Division page. It calls the crime a growing epidemic. This hoax email, which has too many variants, all appear to have been sent by a deposed African official or a relative of one. The email messages ask its recipients for assistance in transferring or handling a sizable sum of money, offering a corresponding share for such service. Click here to read more.
- PHISHING – Con artists phish by spamming the world with counterfeit email. Their message appears to come from a widely recognized business like Sprint, America Online, eBay, Yahoo!, American Express, etc. It may even incorporate copies of the company graphics. The objective of Phishing trips is to get into your account, or worse yet, steal your identity. These fake messages urgently request some personal information — your account number, date of birth, Mother’s maiden name, credit card expiration date, etc. Click here to see examples of phishing.
- IDENTITY THEFT – Identity theft occurs when someone uses your personal information without your permission to commit fraud or other crimes. Click here to read more on the Federal Trade Commission’s id theft website.
- ONLINE AUCTION FRAUD – The single largest category of Internet-related complaints to the U.S. Federal Trade Commission’s (FTC) Consumer Sentinel international database — 51,000 complaints in 2002, and officials expect even more in the coming years. You post something for sale on an online auction website and receive an email and then a check for an amount much larger that the asking price. You are told to cash the check, take out your amount and return the difference. You are then told to Western Union the money to the person. This is ALWAYS a scam, the checks are ALWAYS no good and you will be out the money. Once the money is placed into Western Union it can be retrieved anywhere in the world at any Western Union office.
- FAKE CHECK SCAMS – Fake check scams can be done through the following ways: Foreign Business Offers, Love Losses, Overpayments, Rental Schemes, Sudden Riches and Work-At-Home offers. Click here for additional information on Check Scams.
- OUT OF THE COUNTRY LOTTERY SCAM- You are notified by phone, email or letter that you won millions of dollars in another country’s lottery. Normally you are told you need to send hundreds or thousands of dollars to an address to “help pay for the taxes, expenses etc”. This is always a scam, and you will lose your money. Again most of these scams are run out of the country.
- GRANDPARENT SCAM - You receive a call from a person claiming to be your grandchild. They may even know your grandchild’s name, but most of the time the caller gets you to say your grandchild’s name and you don’t even realize it. Your “grandchild” tells you they are in another country and need money because they were in an accident, caught with drugs etc. There are many different reasons they use. The caller asks you to Western Union money to them to help pay the costs. They may even have someone identify themselves as an officer and tell you the story about your “grandchild”. This is ALWAYS a scam! Hang-up and notify your actual grandchild’s parents to just make sure all is well!
- WARRANT SCAM- You receive a call that the Police/Constable/ or Sherriff is showing up at your door in 15 minutes and you owe money for an unpaid fine. If you do not have any outstanding issues, do not fall for this scam. Contact your local police directly and they can let you know if you have a warrant outstanding.
TIPS TO AVOID BEING A VICTIM OF FRAUD
- If you receive an unexpected e-mail saying your account will be shut down unless you confirm your billing information, such as a Social Security number, do not reply or click any links in the e-mail body.
- Before submitting financial information through a Web site, look for the “lock” icon on the browser’s status bar. It means your information is secure during transmission.
- If you are uncertain about the information, contact the company through an address or telephone number you know to be genuine.
- If you unknowingly supplied personal or financial information, contact your bank and credit card company immediately.
- Monitor credit card and bank statements for unauthorized charges.
- Suspicious e-mail can be forwarded to email@example.com, and complaints should be filed with the state attorney general’s office or through the FTC at http://www.ftc.gov/.
- Consumers should also report fraudulent or suspicious e-mail to their Internet service provider.