The use of Internet services or software with Internet access to defraud victims or to otherwise take advantage of them, for example by stealing personal information, which can even lead toidentity theft. A very common form of Internet fraud is the distribution of rogue security software. Internet services can be used to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme.
Internet fraud can occur in chat rooms, email, message boards, or on websites.
Purchase fraud occurs when a criminal approaches a merchant and proposes a business transaction, and then uses fraudulent means to pay for it, such as a stolen or fake credit card. As a result, merchants do not get paid for the sale. Merchants who accept credit cards may receive a chargebackfor the transaction and lose money as a result.
An example of a fraudulent purchase transaction:
From: XXXXXX XXXXXX [XXXXXXX@hotmail.com] Sent: Saturday, October 1, 2005 11:35 AM Subject: International order enquiryGoodday Sales, This is XXXXXX XXXXXXX and I will like to place an order for some products in your store, But before I proceed with listing my requirements, I will like to know if you accept credit card and can ship internationally to Lagos, Nigeria. Could you get back to me with your website so as to forward you the list of my requirements as soon as possible.Regards, Chris Onyekachi Avecon Limited Inc 6540 Ne 18th Ave Apt 303 Fort Lauderdale, Florida 33334-5154 United States
Thanks for the prompt response, the price of the car is okay by me,I am ready to buying it now for Birthday gift for my Dad and i am at sea at the moment as i am a marine engineer and due to the nature of my work, phone calls making and visiting of website are restricted but i squeezed out time to check this advert and send you an email regarding it. I really want the car to be a surprise for Dad so i wont let him know anything about the car until it gets delivered to him,i am sure he will be more than happy with the car.I insisted on PayPal because i don't have access to my bank account online as i don't have internet banking, but i can pay from my PayPal account, as i have my bank a/c attached to it, i will need you to give me your PayPal email address and the price so i can make the payments asap for the car and pls if you don't have paypal account yet, it is very easy to set up, go to WWW.PayPal.com and get it set up, after you have set it up i will only need the e-mail address you use for registration with PayPal so as to put the money through. I have a pick up agent that will come and pick the car up after i have made the payments. Cheers...
Counterfeit postal money orders
According to the FBI, on April 26, 2005 Tom Zeller Jr. wrote an article in The New York Timesregarding a surge in the quantity and quality of the forging of U.S. postal money orders, and its use to commit online fraud. Small Internet retailers, classified advertisers and individuals contacted by defrauders online are victims of this fraudulent activity.
In the United States of America, the penalty for making or using counterfeit postal money orders is up to ten years in jail and/or a $25,000 fine.
Online automotive fraud
A fraudster posts a nonexistent vehicle for sale to a website, typically a luxury or sports car, advertised for well below its market value. The details of the vehicle, including photos and description, are typically lifted from sites such as Craigslist,AutoTrader.com, Cars.com. An interested buyer, hopeful for a bargain, emails the fraudster, who responds saying the car is still available but is located overseas. Or, the scammer will say that he is out of the country but the car is with a shipping company. The scam artist then instructs the victim to send a deposit or full payment via wire transfer to initiate the "shipping" process. To make the transaction seem more legitimate, the fraudster will ask the buyer to send money to a fake agent of a third party that claims to provide purchase protection. The unwitting victims wire the funds, and subsequently discover they have been scammed. In response, auto sales websites often post warnings to buyers, for example, those on Craigslist which warn not to accept offers in which vehicles are shipped, where funds are paid using Western Unionor wire, etcetera, requesting those postings to be flagged as abuse.
In another type of fraud, a fraudster contacts someone who has posted a vehicle for sale online, asking for the vehicle identification number (VIN) in order to check the accident record of the vehicle. However, the crook actually uses the VIN to make fake documentation for a stolen car, in order to sell it.
Vehicles can also be used as part of a counterfeit cashier's check scam.
Car export companies verification
Whilst the vast majority of websites in Japan are of genuine business companies, but it is also a fact that online scams and fraud are alive, well and very big business in Japan. It is very important for foreign importers to verify each company and do not send money until full satisfaction. Verification of each Japanese companies under "Japan Company Trust Organization" can also be helpful.
Counterfeit cashier's check scam
Real estate
Landlords placing advertisements on Craigslist orrent.com receive an e-mail response from a prospective renter from a foreign country, typically a student fresh out of secondary education (high school in the U.S.). The first inquiry seems legitimate. The second usually comes with request for more information and an attachment from a fake company set up by the scam artist indicating that the "student" has won a part-time scholarship from the company. (The fraudster will often set up a fake website for the company, in order to make the attachment seem legitimate.) The scam comes with the third e-mail: a request for the victim's name and address so that the "company" can send a cashier's check to cover the rent and the "student's" travel costs.
The victim is instructed to cash the check and also transfer the money to the fraudster account. In the United States, banks consider cashier's checks to be "guaranteed funds" and will typically cash them instantly. However, unlike a certified check, the bank that cashes a cashier's check can still take back the money from the depositor if the check is counterfeit or "bounces". Because of the lag between the cashing and clearing of the check, the victim does not realize that they have been had until their account is debited for the amount they wired to the fraudster, plus any fees for the bounced check.
Automotive
In this variation, a fraudster feigns interest in a vehicle for sale on the Internet. The "buyer" explains that he represents a client who is interested in the car, but due to an earlier sale that fell through, he has a cashier's check made out for thousands more than the asking price. The scammer requests that the victim cash the check and refund the balance via wire transfer. If the seller agrees to the transaction, the fraudstser sends the counterfeit cashier's check via express courier (typically fromNigeria). The victim takes the check to their bank, which makes the funds available immediately. Thinking the bank has cleared the check, the seller follows through on the transaction by wiring the balance to the buyer. Days later, the check bounces, and the victim is responsible for the amount they wired to the fraudster, plus any fees associated with the bounced check.
Cash the cheque system
Defrauders negotiate large purchases with the victim (e.g. ordering $50,000 to $200,000 worth of goods) agreeing to an advance payment via bankwire transfer. After ordering, the fraudster claims that paying via wire transfer is impractical, and instead sends a counterfeit cheque drawn on the account of a real, uninvolved organization as an alternate payment. After the cheque clears, the victim company ships the goods. When the uninvolved organization notices the fraudulent transaction against their account, they request achargeback, resulting in the victim losing both the money and the goods.
In some cases, thieves learn the address of a merchant's bank, and send counterfeit cheques directly to the bank. They then claim a direct depositwas made after the cheque is deposited by bank staff, hoping the victim will only notice the apparently available funds, and not the fact that it was a cheque deposit that the bank has not yet fully cleared.
In other cases, defrauders negotiate smaller transactions (e.g. ordering $2,000 to $10,000 worth of goods) with fraudulent cheques written for more than the purchase amount, and instruct the merchant to refund "excess" amounts via Western Union money transfer to an account in another country.
Re-shippers
Re-shipping scams trick individuals or small businesses into re-shipping goods to countries with weak legal systems. The goods are generally paid for with stolen or fake credit cards.
African version
In African re-shipping scams, fraudsters recruit victims from Western countries via chat rooms and dating websites, developing long-distance relationships with their victims to obtain personal details. After the victim accepts a marriage proposal from the scammer, items are bought online using credit card information stolen from other people and shipped to victims without their knowledge. The fraudster then claims the goods were sent to the wrong address, and asks the victim to apply pre-printed labels to the packages and re-ship them to fraudsters' real address. Once the victim re-ships the goods, the fraudster ceases all communication with the victim. Victims often discover that the shipping account for the pre-printed labels is in their name when the freight company bills them for the shipping costs.
Eastern European version
The Eastern European re-shipping scam is a variant of the Nigerian version in which fraudsters recruit victims through classified advertising by presenting themselves as a growing European company trying to establish a presence in the United States.
The fraudsters explain that they will buy goods in the United States that need to be re-shipped to a final destination in Europe. The thieves then ship fraudulently-purchased goods to the victims, and the victims re-ship goods to the fraudsters. Sometimes, if the fraudsters send pre-printed shipping labels to the victims, they also include a counterfeit check as payment for the re-shipper's services. By the time the check bounces, the goods have already been re-shipped and the fraudsters stop all communication with their victims.
XXXXX Inc. invite residents of the various countries to cooperation. We found your resume on some Job Website because we are searching for reliable professionals or your information has been passed to us by your friends/relatives. Our clients need to accept goods from the various countries. Therefore we creating a network of regional agents which functions are reception of goods and further transferring goods to our shipping managers. We pay you 40€ per received package. We guarantee worthy payment of your work. This job is for you If you want to earn from €150 to €800 per week and work Only 2-3 hours then! This job requires punctuality, good organizational skills and proficiency with Microsoft windows and office programs to maintain inventory and fill forms if necessary. This job is ideal for: housewives, students, older persons, people with restrictions. No money needed to start. This is a business requiring only limited amount of your time. Requirements: 1. A computer with access to the Internet, e-mail 2. We don't work with persons under 18 3. 1-3 hours free during the week 4. Check your e-mail several times a day (each hour is perfect) 5. Reply to e-mails immediately 6. PayPal account to receive payments (optional, WU is also accepted) 7. Be responsible, hard working and communicable We offer competitive compensation, including commission and expense reimbursement.Please send your resume to xxxxxxxxxxx.com
Thank You
XXXXXX XXXXXXX
Manager
XXXXXXX Inc.— A recruiting email in 2007
Chinese version
The Chinese re-shipping scam is a variant of the Eastern European version, in which fraudsters recruit victims through spam. The fraudsters present themselves as a growing Chinese company trying to establish a presence in the United States or Europe.
Dear Sir/Madam, I am Mr. XXX XXX, managing XXXXXXXXXXX Corp. We are a company who deal on mechanical equipment, hardware and minerals, electrical products, Medical & Chemicals, light industrial products and office equipment, and export into the Canada/America and Europe. We are searching for representatives who can help us establish a medium of getting to our costumers in the Canada/America and Europe as well as making payments through you to us. Please if you are interested in transacting business with us we will be glad. Please contact us for more information. Subject to your satisfaction you will be given the opportunity to negotiate your mode of which we will pay for your services as our representative in Canada/America and Europe. Please if you are interested forward to us your phone number/fax and your full contact addresses. Thanks in advance. Mr. XXX XXX. Managing Director— A recruiting email
Australian version
In the Australian re-shipping scam, a company in the United States is contacted by a potential customer, stating they would like to place an order with the company. Once the company responds, verifying that the desired products are in stock, the fraudster will then ask for a shipping quotation to Australia, and explain that they will be paying via credit card.
Once the victim company sends the quotation to the fraudster, they reply that they will have their U.S. agent or freight representative come to the company's location and pick up the merchandise, and the agent will ship the goods to the "customer". The fraudster then asks the company to add a plausible additional charge of US$700 to US$1,500 onto the total cost, and pay that amount to the "agent" when they arrive to collect the goods. The scammer also offers additional compensation to the company, for the extra trouble of paying their agent. The offered reasons for this arrangement might be "the freight company only accepts cash", or "the agent is unable to process credit cards". If the victim company responds that this is not possible, the fraudster will cut off communication.
There are typically many grammar and spelling mistakes in the communications:
Dear XXXX, Thanks for the total quote of my order. The total cost of my order is quite correct and okay by me and I'm ready to pay the bills. I shall inform my freight forwarder who will be coming to pick up the order to hold on and come immediately you inform me that the items are ready for pick up then i can give you a call on that day to get the items packed for pick up and they will call you on their arrival at your address. Also I want you to help me Charge another $1200.00 from my card to the shipping agent who will be coming to pick up my ordered items from you. The $1200.00 that will be sent to the freight forwarder is for the shipping of my order and other items i ordered from different part of the country which is to be picked up by him and should be deducted from my credit card. Also, I'm compensating you with the sum of $150.00 for the transfer fee and for your efforts. Please note that i should have given the shipping agency my credit card for him to deduct the shipping funds but he told me that he doesn't have the facilities to charge or debit credit card, so that's why i bring my vote of confidence in you and i want you to assist me in this measure, so i want you to transfer the funds to him after you have make the charges and the money charged from my credit card is in your account,then you can now make the transfer to the agent via western union. i will have love to do this my self but there are no western union here around me cos i am out of town to monitor my estate construction at a remote village,So the charges you'll make on my credit card will be Order Fee: 3,114.61 Agent fee with shipping fare: $1,200.00 Transfer Fee plus Your Compensation: $150.00 Total: $4464.61Note that my credit card will be charged for the amounts above. Please do get back to me if you are in the office right now so that i can forward my credit card details to you, then you can charge the funds I await your quick response. Kind Regards.
From: XXXXXX Sent: Tuesday, December 4, 2007 4:40 PM To: XXXXXX Subject: RE: mail oder - don't worry i will give you $300 for the stress and you can charges the money and send the money with the US what about that so let me hear from you todayXXXXX wrote: xxx, We will not be able to transfer the extra $700 to your agent. We can charge you for the motors, however, we have them at two different warehouse locations. What you have your agent do is up to you, we can either will call the motors at each warehouse for him to go and pick them up, or have them shipped to his U.S. address. However, if we do have them shipped to his location, shipping charges will apply, and then I suppose you can deduct that from the $700 you would send to him to come and pick them up. Either way you handle it, the motors are in stock and available for purchase.
From: XXXXX Sent: Tuesday, December 4, 2007 4:28 PM To: XXXXXX Subject: RE: mail oder - What i just want you to know is that i will forward my credit for the bill tomorrow to charges and you will charges extra 700 eur to my agent that will come over there to pick up the goods so let me know if you can charges extra eur 700 then send it to him via western union money transferHello xxxxx, I am interested in purchasing some of your products, I will like to know if you can ship directly to Australia, I also want you to know my mode of payment for this order is via Credit Card. Get back to me if you can ship to that destination and also if you accept the payment type I indicated. 37 O'Connell Street North Melbourne Victoria 3051 AUSTRALIA Phone:(613) 9329 65433 Fax: (613) 9329 65434 Email(brysuppliersworldwide@gmail.com) Kindly return this email with your Website. I await your quick response. Kind Regards. managements
Online auction and retail schemes
In an online auction scheme, a fraudster starts an auction on a site such as eBay or TradeMe with very low prices and no reserve price, especially for typically high priced items like watches, computers, or high value collectibles. The fraudster accepts payment from the auction winner, but either never delivers the promised goods, or delivers an item that is less valuable than the one offered—for example, a counterfeit, refurbished, or used item. According to data from law enforcement and consumer protection organizations, fraudulent schemes appearing on online auction websites are among the most frequently reported form of mass-marketing fraud.[3]
Online retail schemes involve complete online stores that appear to be legitimate. As with the auction scheme, when a victim places an order through such a site, their funds are taken but no goods are sent, or inferior goods are sent.
In some cases, the stores or auctioneers were once legitimate, but eventually stopped shipping goods after accepting customer payments.
Sometimes fraudsters will use phishing techniques to hijack a legitimate member accounts on an online auction site—typically an account with a strongly positive online reputation—and use it to set up a phony online store. In this case, the fraudster collects the money, while ruining the reputation of the conned eBay member. When victims complain that they have not received their goods, the legitimate account holder receives the blame.
A more subtle variation of online auction fraud occurs when a seller ships an item to an incorrect address that is within the buyer's ZIP code using theUnited States Postal Service's Delivery Confirmation service. This service does not require the recipient to sign for the package, but offers confirmation that the Postal Service delivered the package within the specified ZIP code. The item shipped is usually an empty envelope with no return address and no recipient name, just a street address different from that of the victim. The delivery of the envelope with the Delivery Confirmation barcode attached suffices for the Postal Service to record the delivery as confirmed. The fraudster can then claim the package has been delivered, and offer the Delivery Confirmation receipt as proof to support the claim.
PayPal Fraud
In a collection in person PayPal scheme, the scammer targets eBay auctions that allow the purchaser to personally collect the item from the seller, rather than having the item shipped, and where the seller accepts PayPal as a means of payment.
The fraudster uses a fake address with a post office box when making their bids, as PayPal will allow such an unconfirmed address. Such transactions are not covered by PayPal's seller protection policy. The fraudster buys the item, pays for it via PayPal, and then collects the item from the victim. The fraudster then challenges the sale, claiming a refund from PayPal and stating that they did not receive the item. PayPal's policy is that it will reverse a purchase transaction unless the seller can provide a shipment tracking number as proof of delivery; PayPal will not accept video evidence, a signed document, or any form of proof other than a tracking number as valid proof of delivery.This form of fraud can be avoided by only accepting cash from buyers who wish to collect goods in person.
The Better Business Bureau (BBB) has also reported that software company KIXEYE also deploys deceptive games to deceive users out of money using PayPal and currently the FBI online fraud division has collected 119,000 complaints of federal internet commerce violations.
Call tag scam
In a call tag scam, criminals use stolen credit card information to purchase goods online for shipment to the legitimate cardholder. When the item is shipped, the criminal receives tracking information via email. They then call the cardholder and falsely identify themselves as the merchant that shipped the goods, saying that the product was mistakenly shipped and asking permission to pick it up when it is delivered. The criminal then arranges the pickup, using a "call tag" with a different shipping company. The victim usually doesn't notice that a second shipping company is picking up the product, and the shipping company has no knowledge it is participating in a fraud scheme.
The cardholder may later notice the charge on his statement and protest the charge, generating achargeback to the unsuspecting merchant.
The Merchant Risk Council reported that the "call tag" scam re-emerged during the 2005 holidays and several large merchants suffered losses.
Post a Comment