Internet Fraud

Cybercrime has experienced significant progress during recent years, as its advance is directly proportional with the advance of technology. In spite of the fact that the authorities devise new and better strategies to fight cybercrime, the fact that the number of people online is constantly increasing means that cybercrimes occur even more frequently. Dishonest people who seek opportunities have discovered how the internet stands as a perfect environment for them to commit crimes by taking as little risks as possible. Computer fraud generates a series of benefits for the person committing it, as he or she can either profit financially from the enterprise or can simply alter files in order for his or her image to be positively affected. Identity theft is a major form of cybercrime and it is essential for society to acknowledge the gravity of the matter in order to be able to effectively fight against criminals using it.

Advances in the internet have changed the way America works,learns,and communicates. The internet has become an integral part of our social life. This has assisted us by communicating and research purposes.

An Internet crime can be a developmental scheme by the perpetrator, using different elements of the internet, and false representation to deprive a person's property or any interest (Kim et al., 2012). Although botched representation comes along, with the provision of misleading information or anonymity of data. In the recent years, there has been an increasing trust of consumers and businesses in the carrying out of particular actions. The amplifying usage comes along with the electronic communication during the act of major business rules. The increasingly rising internet crimes have come along with the global advancement that incorporates internet based conduct of business (Anderson et al., 2013). In the digital era the crime perpetrators, have absorbed the idea of shifting with times leading to the high number of the crimes. The reason that we cannot distinguish between the self additionally the risk trader comes in with internet crime given that a face-to-face communication and monitoring barrier. With that respect, the associated internet fraud has greatly affected by the general allowance, trust, and the usage. The paper will center on the effects attached to social cost, trust, and usage associated with internet fraud.

* Person is liable if he accesses a computer online, without authority, to obtain classified, private, or protected information.

The Internet crimes can often overlap between fraud and other crimes. Because of these overlapping crimes it is important the there is communication and cooperation between our own agencies and international agencies.

Internal fraud consists in “a type of fraud that is committed by an individual against an organization. [Furthermore], a perpetrator of fraud engages in activities that are designed to defraud, misappropriate property, or circumvent the regulations, law, or policies of a company”[8]. Not only has the incidence of internal fraud increased in frequency because of the availability of sensitive information such as client details or confidential business documents; moreover, this type of fraud is found in various types of organizations, ranging from corporations, public service institutions and financial institutions. Our analysis will concentrate on the most common and prolific types of internal fraud, namely identity theft, insider trading, loan fraud and wire fraud. Interestingly, PriceWaterhouseCooper conducted a survey that revealed that the “demographics of a typical fraudster are as follows: males (85% of cases), 31-50 years (72% of cases), reached high-school level (50%), Bachelor’s or post graduate degree (50%) and middle or senior management (52%)”[9].

It is important to first gain an understanding of the various types of fraud, in order to aid understanding in regards to the prevention of fraudulent activity. This paper begins with a review of the definition of financial fraud, and identification of the different fraud types. Further, included is an examination of what motivates individuals to commit fraud, including an identification of some of the method in which people commit fraud. A discussion of the importance of the fraud triangle, and how rationalization contributes to fraud is a key area of focus. Finally, there is an examination of some controls that prevent and detect fraudulent behavior, including the value and importance of understanding the nature of fraud for

The Australian Competition and Commission v Vassallo (2009) case depicts the affects of cyber crime on individuals involved. Advances in technology have enabled new ways to commit fraud online. Criminals are using new and complex techniques to commit fraud which often result in financial loss towards individuals. The two respondents in the case, Leanne Rita Vassallo and Aaron David Smith had sold medical eBooks through the internet. The eBooks claimed to provide medical cures and treatments for various health problems such as Lyme disease, asthma, herpes and prostate cancer. However, expert evidence concluded that the cures offered no therapeutic treatments. The two respondents had profited financially from the fraudulent eBooks and had sold the eBooks to more than 60, 000 customers worldwide. The online fraud was operated through several websites which were able to be accessed internationally. Despite rapid advancements in technology, legislation has proved to be effective in regulating cyber crime.

The internet has brought upon a new revolution of global interconnection where contacting someone on the other side of the world is just a click away, but with this international phenomenon comes an increased susceptibility with unfamiliar technology. Internet crime is compiled of all non-physical crime with the aid of a computer. Although broad in definition internet crimes are largely composed of acts such as cyber fraud, ‘phishing’ (username and password hacking), cyber stalking and hacking. Internet crime does not pose an overwhelming issue in society in terms of its

Just in the last decade, there has been a 29% increase in crimes committed against residents and a 22% increase for business losses due to online crimes (Meyer). Another large issue with technology is that they monitor an individualś every move, for example, a phone company, AT&T, was monitoring their customers phones to be able to “use your individual Web browsing information, like the search terms you enter and the Web pages you visit, to tailor ads and offers to your interests” (Silverman 282). Although the increase in such crimes can potentially cause many issues and obstacles for an individual, they do not physically harm anyone. Such crimes as internet fraud and any other crime that can be committed online, are all fixable and can be prevented. There are security systems that can help protect against frauds and prevent any more from occurring, which makes this issue much less crucial to stop. It is also possible to contact police and bankers to stop this from occurring and they can help you regain all of your losses. The government also has the NSA, the National Security Agency, to monitor all internet movements, which helps stop many of these issues. New technology has helped prevent an immense amount of street crimes, that without the internet, would have only continued to rise, while millions of people would have continued to be murdered.

Countless companies from the smallest to the largest are losing billions every year to fraud and theft. A few types of thefts are:

Fraud cases are extremely serious events that affect a number of factors for those involved. Fraudsters take advantage of circumstances for his/her benefits, but cause surmountable damages to individuals and entities. The extent of the damages can destroy individuals’ dreams and lead entities to cease from existence. Fraudsters, however, are held liable for the crimes committed, which involve criminal and civil cases. Criminal and civil cases are prosecuted differently, involve different legal aspects and different consequences.

Computer Identity theft has affected over 10 million Americans every year because of the poor protection protocols being used nationwide. According to the Aberdeen group over 220 billion dollars have been loss every year due to identity theft. As the use of the internet and technology grows more prevalent in our society the amount of people who are affected by identity theft grows too. Identity theft and fraud have been defined by The United States Department of Criminal Justice as “Terms used to refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain” (Weissmann, “Identity Theft and Identity Fraud”). The effects of Identity theft has left many individuals continuously searching for ways to protect their information, and has caused many to have maxed out credit cards, bad credit rating, empty bank accounts and criminal records.

The agencies employed by governments to police the web in order to protect the vulnerable have seen an increase in child pornography and online fraud. The speed at which information can be distributed and the number of people that can be reached attracts those that are intent on causing harm. The term “cybercrime” is becoming more widely used. The financial gains that can be made and the anonymity the internet can provide, make the virtual world of cyberspace a haven for criminals. Although the internet has huge benefits for information gathering and social networking, in the wrong hands it can cause harm to the vulnerable and criminals are able to vanish into the underground with the use of false identities that are hard to track online.

Did you know that from 2005-2009 the internet scams rose from 100,000 per year to nearly 300, 000 per year (Internet Scam Statistics). From 2010- 2012 it continues to rise beyond 350,000 per year, with a monetary loss of over $300 million per year.