The
Internet Fraud Complaint Center, a partnership between
the FBI and the National White Collar Crime Center
(NW3C), in April 2002 released information about victims'
complaints received and referred to law enforcement
regarding Internet Fraud. The findings span January
1, 2001, through December 31, 2001, the IFCC's first
full year of operation.
Results:
Non-deliverable merchandise and non-payment accounted
for 20.3 percent of complaints and Nigerian Letter
fraud made up nearly 15.5 percent of complaints.
Credit/debit
card fraud was also among the top categories of complaints.
"Fraud
committed via the Internet makes investigation and
prosecution difficult because the offender and victim
may be located thousands of miles apart. This borderless
phenomena is a unique characteristic of Internet crime
and is not found with many other types of traditional
crime," said Thomas Richardson, Deputy Assistant
Director, Criminal Investigative Division of
the FBI.
Listed below are tips to protect yourself and your
family from various forms of Internet fraud:
Avoiding Internet
Auction Fraud
- Understand
as much as possible about how the auction works,
what your obligations are as a buyer, and what the
seller’s obligations are before you bid.
- Find
out what actions the web site/company takes if a
problem occurs and consider insuring the transaction
and shipment.
- Learn
as much as possible about the seller, especially
if the only information you have is an e-mail address.
If it is a business, check the Better Business Bureau
where the seller/business is located.
- Examine
the feedback on the seller.
- Determine
what method of payment the seller is asking from
the buyer and where he/she is asking to send payment.
- If
a problem occurs with the auction transaction, it
could be much more difficult if the seller is located
outside the US because of the difference in laws.
- Ask
the seller about when delivery can be expected and
if there is a problem with the merchandise is it
covered by a warranty or can you exchange it.
- Find
out if shipping and delivery are included in the
auction price or are additional costs so there are
no unexpected costs.
- There
should be no reason to give out your social security
number or drivers license number to the seller.
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Avoiding Non-Delivery
of Merchandise
- Make
sure you are purchasing merchandise from a reputable
source.
- Do
your homework on the individual or company to ensure
that they are legitimate.
- Try
to obtain a physical address rather than merely a
post office box and a phone number, call the seller
to see if the number is correct and working.
- Send
them e-mail to see if they have an active e-mail
address and be wary of sellers who use free e-mail
services where a credit card wasn’t required to open
the account.
- Consider
not purchasing from sellers who won't provide you
with this type of information.
- Check
with the Better Business Bureau from the seller’s
area.
- Check
out other web sites regarding this person/company.
- Don’t
judge a person/company by their web site.
- Be
cautious when responding to special offers (especially
through unsolicited e-mail).
- Be
cautious when dealing with individuals/companies
from outside your own country.
- Inquire
about returns and warranties.
- The
safest way to purchase items via the Internet is
by credit card because you can often dispute the
charges if something is wrong.
- Make
sure the transaction is secure when you electronically
send your credit card numbers.
- Consider
utilizing an escrow or alternate payment service.
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Avoiding Credit
Card Fraud
- Don't
give out your credit card number(s) online unless
the site is a secure and reputable site. Sometimes
a tiny icon of a padlock appears to symbolize a higher
level of security to transmit data. This icon is
not a guarantee of a secure site, but might provide
you some assurance.
- Don't
trust a site just because it claims to be secure.
- Before
using the site, check out the security/encryption
software it uses.
- Make
sure you are purchasing merchandise from a reputable
source.
- Do
your homework on the individual or company to ensure
that they are legitimate.
- Try
to obtain a physical address rather than merely a
post office box and a phone number, call the seller
to see if the number is correct and working.
- Send
them e-mail to see if they have an active e-mail
address and be wary of sellers who use free e-mail
services where a credit card wasn’t required to open
the account.
- Consider
not purchasing from sellers who won't provide you
with this type of information.
- Check
with the Better Business Bureau from the seller’s
area.
- Check
out other web sites regarding this person/company.
- Don’t
judge a person/company by their web site.
- Be
cautious when responding to special offers (especially
through unsolicited e-mail).
- Be
cautious when dealing with individuals/companies
from outside your own country.
- The
safest way to purchase items via the Internet is
by credit card because you can often dispute the
charges if something is wrong.
- Make
sure the transaction is secure when you electronically
send your credit card numbers.
- You
should also keep a list of all your credit cards
and account information along with the card issuer’s
contact information. If anything looks suspicious
or you lose your credit card(s) you should contact
the card issuer immediately.
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Avoiding Investment
Fraud
-
Don't
invest in anything based on appearances. Just because
an individual or company has a flashy web site doesn't
mean it is legitimate. Web sites can be created in
just a few days. After a short period of taking money,
a site can vanish without a trace.
-
Don’t
invest in anything you are not absolutely sure about.
Do your homework on the investment to ensure that
it is legitimate.
-
Do
your homework on the individual or company to ensure
that they are legitimate.
-
Check
out other web sites regarding this person/company.
-
Don’t
judge a person/company by their web site.
-
Be
cautious when responding to special investment offers
(especially through unsolicited e-mail).
-
Be
cautious when dealing with individuals/companies
from outside your own country.
-
Inquire
about all the terms and conditions.
-
If
it sounds too good to be true it probably is.
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Avoiding Business
Fraud
- Purchase
merchandise from reputable dealers or establishments.
- Try
to obtain a physical address rather than merely a
post office box and a phone number, call the seller
to see if the number is correct and working.
- Send
them e-mail to see if they have an active e-mail
address and be wary of those that utilize free e-mail
services where a credit card wasn’t required to open
the account.
- Consider
not purchasing from sellers who won't provide you
with this type of information.
- Purchase
merchandise directly from the individual/company
that holds the trademark, copyright, or patent.
- Beware
when responding to e-mail that may not have been
sent by a reputable company.
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Avoiding
the Nigerian Letter Scam
- Be
skeptical of individuals representing themselves
as Nigerian or foreign government officials asking
for your help in placing large sums of money in overseas
bank accounts.
- Do
not believe the promise of large sums of money for
your cooperation.
- Guard
your account information carefully.
The Nigerian Letter Scam is described
on the Common Fraud Schemes webpage.
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