Be Aware of the Many Faces of Fraud on the Internet

Volume III, Issue 3
ISSN: 1547-7754
August 2005
printable version

Chris King, Editor
By subscription only, this monthly e-newsletter is loaded with short, "down and dirty" tips to help you with solving the everchanging and growing puzzle of the Internet. This e-zine serves as a place to ask your questions and find the answers. So, send me your burning questions.

Yes, we are taking another break from our discussion of products and product creation to discuss a rather unpleasant part of the Internet - fraud and unethical behavior. I have picked this topic for August, because in July I fell for a scam.

Even though I feel that I am fairly savy - after all, I read many tecnical e-newletters, Internet articles and Internet Technology (IT) magazines - I was completely taken in by a clever con artist. If you want to read the whole story, check out the article, Curious about Con Artists: You Find Them in Unlikely Places - My Story, at my blog: www.curiositycubed.blogspot.com

Definition of Fraud: “In a broad strokes definition, fraud is a deliberate misrepresentation which causes another person to suffer damages, usually monetary losses.”

There are so many scary fraud schemes out there, I thought as a warning to you and for your safety, it would be a good idea to discuss some of the "biggies."

FRAUD #1. Phishing
This is one of the most prevalent and most convincing fraudulent schemes. It may refer to your PayPal account, eBay membership, bank account, credit card, or other account where you need an ID, password and/or personal information.

You receive a legitimate sounding e-mail message from support@... similar to the following:

“Dear eBay member,
You have received this warning because we have strong reason to believe that your eBay account had been recently compromised and it could be used by a third party without your authorization. In order to prevent any fraudulent activity from occurring we are required to open an investigation into this matter. To speed up this process, you are required to verify your eBay account by following the link below.”

When you click on the link listed, you are taken to a web page that looks exactly like the account page - for example, you are sure you are at your PayPal account page. You are asked for personal information, including ID and password, etc.

DON’T DO IT! Always go to the legitimate website on your own and check it out with them.

FRAUD #2. Patch or special download
This supposedly is sent by Microsoft and you click to download the patch for an update. You will be downloading an unpleasant virus or worm. Microsoft will never, never send a patch by e-mail. They will check your machine for updates and then ask your permission to download them.

FRAUD #3. Internet Investment Scams
The Internet serves as an excellent tool for investors, allowing them to easily and inexpensively research investment opportunities. But the Internet is also an excellent tool for fraudsters. That's why you should always think twice before you invest your money in any opportunity you learn about through the Internet. To visit the U.S. Securities and Exchange Commission has a great website:www.sec.gov/investor/pubs/cyberfraud.htm that lists a huge number of scams.

FRAUD #4. Preventative Measures - tips for your protection
The IFCC (Internet Fraud Complaint Center) has an excellent website that includes a tips page at: www1.ifccfbi.gov/strategy/fraudtips.asp where you will read about Internet Auction Fraud, Non-Delivery of Merchandise, Credit Card Fraud, Investment Fraud, Nigerian Letter Scam, and Business Fraud.

Have a terrific and productive month!

Do send your comments and questions to me at chris@creativekeys.biz. I love to receive feedback and will answer your questions in future e-zines.