Internet fraud assumes different forms. Therefore, this term paper will give a comprehensive overview of internet fraud.
It appears that advances in the computer technology have led to the emergence of new crime activities. However, current wave of economic globalization requires extensive application of ICT in business transactions. As a result, e-commerce is seemingly assuming the center stage in the world of business. It has imparted sophistication in the way the global community carries out business transactions. Today, people do not need to have liquid cash in the pocket for business transactions as it used to be the case before the inception of e-commerce, in 1990’s. Moreover, electronic money transfers have offered people with a reliable alternative of buying and selling items through electronic means.
Purchase and selling of goods and services are currently being conducted at the comfort of one’s sofa set in the house or on the office chair. This has been enhanced by the invention of e-payment services, in which buyers can purchase commodities via online connection, the so-called online shopping and send the payments to the seller through electronic money transfer means.
However, e-commerce appear to be accompanied by enormous financial risks, especially with regard to internet fraud through which users of online money transfers are losing colossal sums of money to cyber criminals. It is believed that millions of people among the global population fall victims of internet fraud every year and, the vice has been assuming upward trends year-by-year.
From an accounting perspective, Internet fraud is a cyber crime in which cyber criminal develop an internet scheme to deprive a person of financial resources, especially by the creating dishonest misrepresentation of fact. Australian Federal Police (2012) defines internet fraud as, “any type of fraud scheme that uses email, web sites (and) chat rooms or message boards to present fraudulent solicitations to prospective victims” (par. 1). Internet fraud assumes different forms. Therefore, this term paper will give a comprehensive overview of internet fraud.
Table of Contents
1. Introduction
2. Forms of Internet Fraud
3. Actions to Take
4. How to Prevent Internet Fraud
5. Organizations Responsible for Internet Fraud
6. Some Cases about Internet Fraud
7. Conclusion
Objectives and Topics
This paper aims to provide a comprehensive overview of internet fraud, examining its emergence alongside the growth of e-commerce, the various forms it takes, and the necessary measures for prevention and victim assistance.
- The rise of cybercrime within global business transactions.
- Common categories of internet fraud including phishing, identity theft, and banking scams.
- Procedures for reporting fraud and seeking emotional or legal support.
- Best practices for individual protection in online financial activities.
- The role of criminal organizations in perpetrating online financial crimes.
Excerpt from the Book
Forms of Internet Fraud
It is believed that criminals transmit proceeds of financial fraud to individuals and financial institutions through their fraud schemes. In general, there are five common forms of internet fraud and they are perpetrated in different ways at different venues. These forms include internet banking fraud, shopping/auction site fraud, scams, identity theft and spam.
In internet banking fraud, criminals use internet technology to withdraw or transfer money across different bank accounts illegally. This form of fraud occurs often in banking institutions and, it is usually transmitted through mobile devices such as tablets and smart phones. Internet banking fraud is categorized into three forms: mobile banking, mule recruitment and phishing.
Mobile banking has become one of the most reliable means of banking. Therefore, financial institutions have developed sophisticated software system to protect their clients from internet fraud. However, criminals have devised tricky ways of persuading victims to reveal their confidential banking information from them. As a result, criminals use the victim’s banking information to access money in the victim’s bank accounts.
In mule recruitment, criminals convince other people to receive stolen funds into their bank accounts, which are then transferred to criminal networks overseas. In most cases, criminals connect with innocent persons through sending fraudulent employment recruitment emails to random email recipients. As a result, innocent persons fall victims to the criminals and they are used as channels of perpetrating criminal activities. The ultimate result for falling victim to cyber criminals is prosecution because; the victim’s information is available in the criminal network (Australian Federal Police, 2012).
Summary of Chapters
1. Introduction: This chapter highlights how the expansion of e-commerce and electronic money transfers has created new vulnerabilities to financial crimes.
2. Forms of Internet Fraud: This section categorizes common fraud tactics such as banking fraud, phishing, mule recruitment, and scams targeting online shoppers.
3. Actions to Take: This chapter outlines the necessary steps victims should follow to report fraud and seek assistance from local and international authorities.
4. How to Prevent Internet Fraud: This chapter discusses preventive strategies, emphasizing the importance of securing online transactions and verifying the integrity of business entities.
5. Organizations Responsible for Internet Fraud: This section examines the involvement of organized criminal groups and the challenges in tracking their cross-border operations.
6. Some Cases about Internet Fraud: This chapter provides real-world examples of individuals convicted for various types of fraudulent online schemes.
7. Conclusion: This chapter summarizes the increasing threat of cybercrime and reiterates the need for user caution in the digital age.
Keywords
Internet Fraud, Cyber Crime, E-commerce, Phishing, Identity Theft, Online Banking, Financial Security, Cyber Criminals, Data Mining, Fraud Prevention, Online Shopping, Digital Security, Information Privacy, Scam, Financial Loss
Frequently Asked Questions
What is the core focus of this publication?
The publication focuses on the prevalence of internet fraud, detailing its various manifestations in the modern business world and how global internet users can protect themselves.
What are the central thematic areas covered?
The key themes include the evolution of cybercrime, common fraud methodologies, legislative and investigative reporting channels, and risk mitigation strategies for digital consumers.
What is the primary research goal?
The goal is to provide a detailed overview of internet fraud to increase awareness and offer actionable advice for victims and potential targets.
Which scientific methodology is applied?
The paper employs a comprehensive literature and case study analysis, referencing reports from law enforcement agencies like the FBI and the Australian Federal Police.
What is addressed in the main body?
The main body systematically covers the types of fraud, the specific agencies responsible for investigations, and practical prevention steps for various online activities.
Which keywords characterize this work?
Key terms include internet fraud, cybercrime, e-commerce, identity theft, phishing, and online safety protocols.
How does e-commerce contribute to the risk of fraud?
E-commerce facilitates transactions that can be exploited by criminals using anonymous online identities to steal financial information from unsuspecting users.
What should a victim do if they fall prey to an online scam?
Victims are advised to report the incident to authorities such as the FBI's Internet Crime Complaint Center and save all relevant documentation to prove financial loss.
Are there specific criminal groups involved in these activities?
Yes, the text notes that organized crime groups, including various syndicates and international cartels, use the internet to facilitate global financial crimes.
- Quote paper
- Caroline Mutuku (Author), 2018, Internet Fraud. An Overview, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/428843
