Internet Fraud

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Internet fraud is a problem that has become very widespread in recent years. Internet fraud was first monitored by the Internet Fraud Watch organization in 1996. The Fraud Watch has stated that each year after its inception internet fraud has increased. In 1998, the Securities and Exchange Commission established the Office of Internet Enforcement to fight online securities fraud which was another sign of how large the problem is becoming (Clausing). Despite the SEC¡¦s efforts this problem has not been alleviated, but instead continues to grow. According to the Internet Fraud Complaint Center (IFCC), ¡§the total dollar loss from all referred internet fraud cases was $54 million in 2002; this amount is almost three times as much than was…show more content…
The seller does this to try and gain a larger bid for his item. „h Triangulation involves three parties: the perpetrator, a consumer, and an online merchant (BSIS). The perpetrator buys goods from a merchant using a stolen credit card and then attempts to sell the goods on an online auction site (BSIS). The consumer purchases the item without knowing that it is illegally owned. The consumer is then susceptible to police questioning and confiscating of the goods. The buyer and the merchant are both victims (BSIS). „h Fee stacking is the process of adding hidden charges to the item after the consumer has already made the purchase. Examples include separate charges for postage, handling, and the shipping container (BSIS). „h Black-Market goods are sold openly in online auctions. Black-Market goods are goods that are illegal. They include counterfeit merchandise, copied CDs, pirated software, and guns (BSIS). „h Multiple bidding is used by a buyer to buy an item at a lower price. The buyer obtains several aliases on the auction site and then makes multiple high and low bids with these different names. At the end of the auction the bidder then retracts the larger bids in order to get the item at a low price (BSIS) „h Shill bidding happens when the seller bids on his own item in order to raise the price on the item. The Study In our study we hope to provide further evidence that the problem of internet auction fraud exists.
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