ASSIGNMENTS

Assignment

Assignment

Unit 5: Question 1 Chapter 7

Internet Fraud

The term Internet fraud pertains to the utilization of Internet software or services with web access to take advantage of victims or defraud them. This may online auction fraud ultimately leading to identity theft. The types of fraud are described below:

Auction Fraud

The internet is widely used portal for buying and selling purposes today. Most of the consumers and manufacturers use internet services for their commercial as well as personal purposes. However, the criminals unfortunately, take benefit of the anonymity of the Internet in order to make unlawful gains from the unsuspecting sellers and buyers. The crooks here sell some product to the visitors and that too on a ridiculously low price. Through this stupid activity, they just tend to steal the data and personal information from the buyer's credit card. Besides this, sometimes, they take the money from the customers and send them some worthless item or nothing at all. The online auction sites are virtual flea markets that offer the highest bidder a selection of new and used. Among the frauds, include the misrepresentation of an item, non-delivery of goods and services and non-payment of goods delivered. In addition, online auctions can be rigged by scammers (Alabama Cooperative, 2007).

Credit card fraud

There are different ways in which the frauds through the credit cards take place online. Because of such frauds, the client's card could be stolen or lost, and thus, be used to purchase goods and services. A criminal can also get the customers' card number and expiration date, and use this information to make a counterfeit card. The users on the web may also, inadvertently, provide the manufacturers or sellers their credit card number and expiration date, not knowing whether the seller is original or not. This information can be obtained by the criminal through either internet or phone.

Investment frauds

Actions of the Securities and Exchange Commission on Law Enforcement, as well as criminal trials have shown that criminals use two basic methods to manipulate securities markets for personal gain. First, the so-called project "pump-and-dump", in which they tend to spread false and misleading information in an effort to cause a sharp rise in stock prices are not in demand, or on the stocks of companies that are not have substantial assets and no business operations (this is known as pump). Immediately after that, they sell their shares of such companies (known as dump), to extract substantial profits before the stock price drops to its normal low level. Not all other purchasers of such shares are aware of the fraudulent nature of the information, the victims of this scheme, once the price falls. In other fraudulent investment schemes, use of the Internet can be combined with traditional techniques of mass marketing such as telemarketing, for a significant increase in the number of potential victims.

Online Business Frauds

There is identity theft when someone obtains and uses a personal data illegally from another person to commit fraud or another crime, usually to make ...