Internet fraud is becoming more common as technology improves and the economy worsens because perpetrators are getting craftier and more desperate. Even though it is increasingly common, many victims don’t know how to report an incident or how to protect themselves.
Report Crimes to IC3
Complaints regarding Internet fraud should be reported to the Internet Crime Complaint Center (IC3) at www.ic3.gov. The IC3 is a partnership between the FBI and the National White Collar Crime Center and accepts complaints for non-fraud Internet cases, including child pornography, unsolicited e-mails and computer intrusions, along with Internet fraud-related complaints. The center tracks all complaints and refers qualifying complaints to the local, state and federal law enforcement agencies for further investigation.
Most Common Types of Fraud
The 2009 Internet Crime Report, published by IC3, states the most common Internet fraud includes non-delivery of merchandise, credit card and auction fraud. Internet users who enter financial transactions need to have a good understanding of these schemes to protect themselves.
- Non-Delivery of Merchandise - Non-delivery of merchandise occurs when a seller does not ship the promised item or the buyer does not send payment for an item that was received.
- Credit Card Fraud - Credit card fraud is any unauthorized use of a credit card or card number. This information is commonly accessed by a perpetrator from an unsecured website.
- Auction Fraud - Auction fraud occurs when goods are misrepresented when advertised for sale on an Internet auction site or when goods purchased through an Internet auction site are not delivered.
Advice for Preventing Fraud
Use a credit card to make online purchases so any fraudulent claims can be disputed by the victim. Do not give out credit card information, social security numbers or driver’s license numbers unless the website is secure.
Although Internet auctions are a good way for a purchaser to find a bargain, the purchaser should review the auction format prior to making any bids. The purchaser needs to understand the auction rules and the obligations of the buying and selling parties and learn if there is any action the website will take if a problem occurs.
Internet shoppers should be cautious when working with vendors located outside the country. It is easier to recoup losses from vendors within the United States because of the difference in laws.
Internet shoppers should research the vendor before buying any items off the Internet. Vendor verification includes calling the company to ensure the call is answered by the vendor listed as the seller of the item being purchased. If a vendor has a post office box, it is important to verify the vendor also has a physical address. Prospective purchasers could also send the company a test e-mail to ensure the address works. Purchasers should beware of vendors that use free e-mail services. If the company is registered locally, purchasers should contact the Better Business Bureau.
If you find yourself tangled in a case of Internet fraud, report the claim to the IC3. Verify the validity of all websites that request financial information; this will go a long way toward preventing Internet fraud.
