Thanks to the advent of the Internet, and especially with e-commerce, cyber fraud criminals have come up with many different ways to steal funds. One of these methods is to use fraudulent payment gateways that look very similar those used by genuine e-commerce stores. Not only can they provide damage to both their investors and buyers alike, but they can also dampen the public’s trust in online stores, and online transactions in general.

Top Cyber Fraud Activities

Here are a couple of examples of cyber fraud crimes that are often noted by police:

  1. Auction and Retail Schemes Online – As mentioned by the Federal Trade Commission, as well as the Internet Fraud Watch, these cyber fraud schemes often show up on online e-commerce sites. Among all of the different cyber crimes out there, this is the one that gets reported the most. This is just one of the many types of cyber crimes related to selling fake luxury goods. The rarer the item, the more it can attract possible victims. These scammers will convince their victims to send them some cash in exchange for the items – But in the end, they will send in nothing, or, in some cases, send in an item that doesn’t have enough value than what was promised.
  2. Investment Schemes Online – The SEC, also known as the Securities and Exchange Commission, has released a warning to its clients regarding fake online investment schemes. As mentioned by the Commission, these investment schemes do their very best to reel in plenty of investors and other victims to take part in a so-called ‘mutual aid financial network’. The scammers will claim that this investment earns a monthly return of at least 30%. Scammers will sometimes come up with fake success stories that tells the public about how this ‘company’ came to be. They will also mention that the victims’ planned investment is pretty much the same as that of a ‘hot’ money-maker. But these types of success stories are sometimes deemed as irrelevant. If you come across a suspicious investment scheme, always do some research first, as well as a background check on the people involved with this company.
  3. Credit Card Schemes – A couple of these schemes, which usually appear to have the same feel as a virtual auction, usually involve an unlawfully obtained credit card number from a previous victim. The scammers will use the number to purchase services or goods on the Internet, all without the victim’s permission.

One of the more frequent instances of these credit card schemes deals with selling high-value consumer items to the victim at a very reasonable price. If the buyer wants to contact the scammer, the scammer will tell them that they will ship the item before the buyer even has the chance to pay. If the buyer agrees to the scammer’s deal, the scammer will then use the buyer’s personal information together with another victim’s credit card number to purchase the item from a real online store. After the site has shipped the item to the buyer, the buyer will think that the transaction is real. They will then authorize their credit card to be billed to the scammer, or send in cash their way, to perform even more types of cyber fraud.

Advertisements