Internet fraud refers to the use of Internet service to present fraudulent solicitations to prospective victims, to conduct fraudulent transaction, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme. Internet fraud can occur in various form or occasion starting from chatting rooms, via email, message board, or on websites.
Purchase fraud occurs when a criminal approaches merchant and proposes a business transaction, and then uses fraudulent means to pay for it, such as stolen or fake credit card. As a result, merchants do not get paid for the sale. Merchants who accept credits card may receive a chargeback for the transaction and lose money as a result.
Counterfeit Poster Money Orders
According to the FBI and postal inspectors, there has been a significant surge in the use of counterfeit postal money order since 2004, October. More than 3700 counterfeit postal money order were intercept by authorities between October and December 2004. According to the United States Postal Service, the quality of the counterfeit postal money is so good that ordinary consumers can easily be fooled. The counterfeit postal money orders are presented for payment at banks and other financial institution.
Online Auction And Retail Schemes
In an online auction scheme, a fraudster starts an auction on a site, mostly on some authority sites with very low priced items like watches, computer, or high value collectibles. The fraudster accepts payment from the auction winner, but either never delivered the promised goods or delivers an item that is less valuable than the one offered. For instance, a counterfeit refurbish or used item.
Online retail schemes involve complete online stores that appear to be legitimate. As with the auction scheme, when a victim places an order through a site, their funds are taken but no goods are sent or inferior good are sent. In some cases, the store or auctioneers were once legitimate but eventually stopped shipping goods after accepting customers’ payments.
Online dating frauds are almost as old as internet dating itself. Often referred to as a “sweetheart swindling”, the con artist develops a relationship with the victim and convinces them to send money to their fraudster. The requests for money can be a one-time event or repeated over an extended period of time, most online dating services experiences difficulties dealing with fraudsters and issue warnings to their users.