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Internet Fraud



Consumers on the Web are justly concerned that their Internet privacy is at risk. Increasingly, they are targets of Internet fraud as fraudulent individuals and companies carry out new and devious internet scams, from online gambling to e-commerce fraud.

Internet and Email Fraud

Internet and Email FraudThe right to privacy is a serious issue, particularly Internet privacy. Almost every time you surf the Web, you encounter an Internet scam. Worldwide, the US is home to about 78 percent of Internet-related crimes and Federal law enforcement agencies have identified Internet crimes as one of their greatest challenges. Investigators and prosecutors have created cyber crime units to prosecute computer crimes, including Email fraud, online gambling fraud, e-commerce fraud and more. Experienced consumer fraud attorneys can help you seek damages in a consumer fraud lawsuit or class action suit.

Before the advent of the World Wide Web, consumers were defrauded mainly by telemarketing and direct mail scams. Now, consumers are cheated by illegitimate businesses misrepresenting products and services, failing to deliver purchased goods, or by charging hidden fees, just to name a few internet scams. Internet Privacy is at risk as criminals use email to deliver fraudulent messages asking for personal information.

According to the US Secret Service, hundreds of millions of dollars are lost annually due to email fraud in the e-commerce industry and the losses are escalating. Most email fraud and internet scams happen when fraudsters obtain access to your account numbers and passwords.

Email Fraud

Never reply to an email message that asks you for account numbers and passwords, asks you to send cash or requests any personal information, even if the email looks like it comes from your bank, your health care provider, or any government agency.

alt=Most email messages that look like they come from a legitimate source are "Phishing" scams. They ask you to verify or update your current personal information and use this information to commit identity theft.

While Phishing scams are currently the most common types of Internet scam, "pop-up" scams are the oldest. A window pops up on your computer screen, usually announcing that you are going to win a prize, and all you have to do is provide some information—enough to commit identity theft. Of course you never receive the prize.

Email fraud often occurs in chain mail. Never send money or personal information to people on lists via chain mail, or from whom you've received chain mail.

E-Commerce Fraud

Internet E-Commerce FraudE-commerce fraud is also known as Internet fraud. In 1999, the US Department of Justice formed the Internet Fraud Initiative and the Internet Fraud Complaint Center (IFCC). Since that time, the Justice Department has prosecuted a number of criminal cases against Internet businesses engaged in fraudulent practices. The Federal Trade Commission, which protects consumers from deceptive and unfair business practices, also investigates reports of Internet fraud and enforces the law. If you think you've been the victim of Internet fraud, you may be eligible to seek compensation for your damages through a consumer fraud lawsuit: you should seek advice from an experienced consumer fraud attorney first.

Buying and selling online is big business, and fraud is one of the biggest problems for the e-commerce industry. alt=According to a survey conducted by Cybersource, a provider of electronic payment and risk management services, E-commerce fraud costs retailers approximately $4 billion each year. Some common online fraud scams to be aware of include:
  • Buying something that doesn't arrive, typically from sites such as eBay or Craigslist (see example below)
  • Selling something and delivering it but not getting paid, such as online auction sites
  • Your purchase doesn't match the original description. (see example below)
  • You hoped to win a lottery prize and paid an administrative or advance fee but didn't get the cash.
  • An online business opportunity that didn't have the return you expected.
  • Receiving a letter or email from someone who promised a share of a substantial fortune in return for your help, such as the Nigerian Bank Scam or lotteries
  • Buying pirated software
  • Making a bad investment based on advice received by email or a website
  • Responding to fraudulent emails asking for personal information or clicking on an attachment that has been linked to a virus(see example below)
Example of E-Commerce Fraud from eBay:

eBay is committed to maintaining a safe environment for its community of customers. To protect the security of your account, eBay employs some of the most advanced security systems in the world and our anti-fraud teams regularly screen the eBay system for unusual activity.

eBay E-Commerce FraudWe are contacting you to remind you that on our Account Review Team identified some unusual activity in your account. In accordance with eBay's User Agreement and to ensure that your account has not been compromised, access to your account was limited. Your account access will remain limited until this issue has been resolved.

To secure your account and quickly restore full access, we may require some additional information from you for the following reason:

We have been notified that a card associated with your account has been reported as lost or stolen, or that there were additional problems with your card.

This process is mandatory, and if not completed within the nearest time your account or credit card may be subject for temporary suspension.

To securely confirm your eBay information please click on the link below…

Example of Email Fraud from PayPal:

Dear PayPal Customer,

This is your final warning about the safety of your PayPal account. If you do not update your billing informations your access on PayPal features will be restricted and the user deleted. This might be due to either following reasons:
  • A recent change in your personal information (i.e. change of address)
  • Submiting invalid information during the initial sign up process.
  • An inability to accurately verify your selected option of payment due to an internal error within our processors.
Please update your PayPal profile in order to restore your online access.

Example of Email Fraud from the FBI:

Dear Sir/Madam,

We have logged your IP-address on more than 30 illegal Websites.

Important: Please answer our questions! The list of questions are attached.

Yours faithfully,
Steven Allison
Federal Bureau of Investigation-FBI-

These emails are being sent out with email addresses of mail@fbi.gov, post@fbi.gov and admin@fbi.gov.

To stay updated on New E-Scams & Warnings, visit the FBI Investigative Programs and Cyber Investigations online.

Online Gambling Fraud

Online gambling fraud is growing fast, especially with the advent of mobile technology. Large amounts of cash attract criminals who attempt to defraudalt= both operators and customers through various scams. Be aware of websites offering a "sure fire way to win" or a "mathematically sound method" that asks you to pay a fee to receive this unbelievable system—also known as an advanced fee fraud.

Other online gambling fraud includes:
  • Collusion, such as through illicit real-time information sharing using instant messaging during poker games;
  • Money laundering;
  • Identity theft;
  • Bot gaming, or gaining an unfair advantage in skill games by using software to solve puzzles and mimic a human player;
  • Credit card fraud;
  • Bonus abuse, such as the creation of multiple accounts to obtain repeated risk-free bets and;
  • False charge-backs, which trick credit card companies into paying back losing bets.
The Internet Gaming Commission (IGC), a self-appointed watchdog of online gambling, accredits gambling sites that abide by the rules of the Commission and charges at least $1000 per participant.

Internet Privacy

Internet PrivacyThere are certain technologies and software that can protect your Internet Privacy. For instance, you can choose to disable "cookies", which are a means of accumulating information about you without your knowledge. Cookies attempt to keep track of visitors to a Web site and this information can be sold. America Online has been accused of selling data based information about users. The Federal Trade Commission determined that Geocities, a web site where users input personal information, was selling information that violated its own privacy policy.

Conviction of Internet and Email Fraud can include:
  • State or Prison
  • Probation
  • Fines
  • Restitution (paying back any funds taken)
  • Loss of employment (for those with licenses or security clearances)
If you feel you've been the victim of Internet fraud, you may be eligible to seek compensation for your damages through a consumer fraud lawsuit. If you have been the victim of e-commerce fraud, it is important to file a complaint sooner than later. You might also be entitled to file a consumer class action lawsuit.

A class action suit enables consumers who may not have suffered a significant injury or wrong to join others who have suffered alike. Joining forces allows people to collectively seek compensatory damages through a single trial, which can save both time and money, and help consumers recover their losses.

Internet Fraud Legal Help

If you or a loved one has suffered damages in this case, please fill in our form on the right and your complaint will be sent to a lawyer who may evaluate your claim at no cost or obligation.
Last updated June 19 2010

Reader Comments


Posted by
Philip C Brown
on
I have a serious problem with an online sports book - Bovada. This past Sunday Sept. 11, I won 2 bets & was expecting my winnings to be deposited in a timely manner; 20 minutes tops.
I wanted to use these monies to bet on the second games on Sunday as I had invested 8 hours doing research on the probably winners, spreads, over/under, & money line.
It was over 40 minutes before I had my account credited & the games had already started. I complained to Bovada about this & they FROZE my account! This is like STEALING someones money & it took me 3 days to have the account re-opened.
Bovada is taking no responsibility for what I consider unethical/illegal actions. I have asked them what regulatory or licensing agencies they are affiliate with, so I can file a formal complaint. They have neglected/refused to provide this information to me. They are - UNPROFESSIONAL BULLIES!!!

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