INTERNET FRAUD



What Is Internet Fraud?


Phishing is the act of sending an email to an individual claiming to be from an established and legitimate institution, in an attempt to scam them into giving their private information - that information can then be used for identity theft. The email will direct the individual to a website where they will be prompted to update their personal details, such as a password and their bank account details. The email may also suggest that this information is necessary to prevent the individual’s account being suspended.

With this private information the fraudster can commit identity theft with that individuals’ details and have free reign of those bank accounts. Unfortunately, many individuals fall victim to identity theft in this way, as these phishing emails can be very convincing and look extremely authentic. The phishing email is sent to a large group of people, maximizing the opportunity of finding an individual who can relate unquestionably to the emails’ content. This is the sole aim of the scam – sort of like an online confidence trick.

5% of recipients respond to phishing emails, and as a result of responding, a new identity is created using the details provided and identity theft is committed.

Phishing has now become a tool for money laundering. Compromised user data is sold to criminals or groups of criminals who then put together the stolen funds into centralised false bank accounts. The use of false employment agency websites, who encourage users to sign up and provide their bank details to forward money to their accounts for a 20% administration fee has also been revealed.

How Is Internet Fraud Committed?


Emails are created claiming to come from bank security departments and asking for username and password details in connection with Internet banking. The email prompts ‘account holders’ to click on a URL (Uniform Resource Locator), which then generates a web page. The aim is to have unsuspecting account holders enter their user name and passwords on the web page, which, unknown to them, is linked into a web server run by a criminal enterprise.

Once the user name and password have been obtained, the criminal can log into the online banking system of that individual, access the bank account and transfer money from that bank account into another bank account from which he will be able to obtain the money.

To facilitate these transfers, people who have bank accounts at the same bank as the account that is being targetted are recruited. The recruitment process involves advertisements on internet forums and unsolicited emails offering job vacancies as ‘ money processors'. For individuals who respond to these advertisements, they can be in receipt of 7% commission of the monies that they handle.

Once the stolen money is received into the bank account that belongs to the money processor, they are instructed to withdraw the cash and then use a money transfer service to send the money on to the criminal organisers.

Internet fraud can come from anywhere in the world, and also target anyone in the world. The victims of phishing those unsuspecting individuals who become victims of identity theft, and the banks and financial institutions who have their customer accounts attacked.

Internet fraud also stretches to members of Internet auction sites, such as eBay. Individuals must cemploy sufficient safeguards before entering a website that is prone to phishing. You may be liable if you don't..!!

Please visit our page – Internet Auction Fraud for advice and tips on how to protect yourself from identity theft and monetary losses when using internet auction sites.

Statistics show that the target banks and financial institutions for internet fraud are English speaking. The USA, United Kingdom and Australia are the primary victims.

 

How Can We Protect Ourselves?


Remember….
A bank or any other financial institution will never send emails to their customers requesting personal details, such as PIN numbers, passwords, account details or other personal data such as your date of birth. No matter how genuine the email looks, never ever respond to them. If you think an email is indeed a phishing email forward it on to the bank that it claims to come from.