Beware of e-commerce fraud,online transaction fraud,internet e-commerce frauds,avoid online fraud
Beware of e-frauds
Even as the e-commerce sector has succeeded in surging ahead in terms of business scope and market share, many consumers still seem wary about the process, owing to frauds and fraudulent deals that take place.
Perhaps the most widely reported e-commerce fraud scheme today is the so-called phishing scheme. A typical phishing scheme uses e-mails and websites that are designed to look exactly like those of legitimate banks and corporations—typically by simply copying the code of the legitimate entities’ own e-mails and websites.
One reason for this caution may be the continuing growth of e-commerce fraud. According to recent study, online merchants estimated that their revenue losses due to fraud reached more than $4 billion. Internet users also are at risk of losing substantial sums to various schemes. More than 60 percent of consumers surveyed expressed concern about identity theft, and nearly 6 percent admitted to switching banks to avoid becoming an identity theft victim.
Law enforcement authorities increasingly recognize that e-commerce fraud poses a significant threat to commercial and consumer interests. Because e-commerce fraud involves more diverse methods and techniques than ever before, it is becoming even more difficult for law enforcement agencies to identify and address the menace.
However, the global law enforcement authorities has identified eight top schemes.
IDENTITY THEFT FROM PUBLIC DATA SOURCES:
Certain public websites may include valuable personal data that can be used for fraud. In many cases the fraud extracts data from online filings with the public data websites, then used them to apply online for car loans in others’ names. At times, the frauds took these names and used their data to open credit card accounts and buy computers.
ADVANCE-FEE FRAUD AND ELECTRONIC DEBITING:
Criminal organizations are becoming more adept at using electronic debiting processes in fraud. Usually the criminals fraudulently offered “guaranteed” credit cards, then asked victims for their bank routing codes and bank account numbers purportedly to pre-qualify them for the cards. Through one-time and repeated monthly debits from these accounts, the operation can amass tens of thousands of rupees.
ONLINE HIGH-YIELD INVESTMENT OFFERS:
Criminal organizations have also used the Internet to expand their offers of non-existent high-yield investment opportunities to a worldwide audience.
The fraud offers online investors a non-existent prime bank investment. The scheme defrauded more than 13,000 people in 60 countries out of $58 million in the United States alone.
SPOOFED WEBSITES:
One of the earliest Internet fraud techniques that criminals devised was the creation of spoofed websites — websites designed to look like those of legitimate banks or corporations—to entice prospective victims to do business with them. They also construct bogus escrow sites, so that would-be sellers would think that they were assured of payment for the articles they shipped. In fact, sellers shipped their wares but never received payment.
ONLINE 419 SCHEMES:
West African or 419 fraud schemes now routinely exploit e-mail as well as other communications media to reach potential victims worldwide.
These schemes have ventured beyond the traditional 419 solicitations, which claimed to involve funds diverted from the Nigerian National Petroleum Corporation. Many now use messages that play more on sympathy than greed. For example, many 419 e-mails claim that the senders are political refugees being threatened by corrupt governments, or are soliciting funds for tsunami relief.
ELECTRONIC BILLING FRAUD:
Criminals who understand electronic billing processes have undertaken major fraud schemes that have defrauded vast numbers of consumers out of crores of rupees. Usually, the fraud party operates a scheme to cram unauthorized charges on the telephone bills of millions of consumers, which generates huge gross revenues.
RE-SHIPPER SCHEMES:
Criminal operations dealing in online credit-card and debit-card fraud often use stolen or fraudulently obtained card numbers to order large volumes of high-value merchandise, such as consumer electronics, from e-commerce websites. Many e-commerce companies are wary of online orders in which the credit card address is in North America but the shipping address is overseas.
To disguise their activities, a number of these operations conduct reshipper schemes. In these schemes, the criminals recruit individuals, through chat rooms or legitimate Internet job sites, to receive shipments of goods and reship those goods to other addresses that the criminals designate. Typically, the newly hired reshipper is told nothing about the criminal nature of the operation, but unwittingly furthers the scheme’s operations.
PHISHING SCHEMES:
Perhaps the most widely reported e-commerce fraud scheme today is the so-called phishing scheme. A typical phishing scheme uses e-mails and websites that are designed to look exactly like those of legitimate banks and corporations — typically by simply copying the code of the legitimate entities’ own e-mails and websites.
Since 2003, law enforcement agencies in several nations have successfully identified and arrested numerous individuals allegedly connected with phishing operations.
So, next time before you engage yourself in an online transaction, take your time and find out all about the party. It's pays to be sure.
