Internet Fraud: an Overview of Classifications, Government Actions, and Consumer Protection

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.

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.

new advances in the electronic technologies during the past decades have administered a new wealth of criminal activity. Software like Computer viruses, malware, software privacy, spam and etc. Technologically savvy artist replicate websites, so when a person's online activities occurs in a virtual world it can be compromised.Many times Cyber intrusions rely on human interaction and it often involves tricking people into breaking security procedures.

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.

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

In recent years, the Internet has become an appealing place for criminals to obtain identifying data, such as passwords or even banking information (Borrus). In their haste to explore the exciting features of the Internet, many people respond to "spam" ¬ unsolicited E-mail ¬ that promises them some benefit but requests identifying data, without realizing that in many cases, the requester has no intention of keeping his promise. In some cases, criminals reportedly have used computer technology to obtain large amounts of personal data. With enough identifying information about an individual, a criminal can take over that individual's identity to conduct a wide range of crimes: for example, false applications for loans and credit cards, fraudulent withdrawals from bank accounts, fraudulent use of telephone calling cards, or obtaining other goods or privileges which the criminal might be denied if he were to use his real

In any case, the utilization of fluctuating meanings of fraud and strategies utilized by these information authorities create shifting assessments of the degree of data fraud and its expenses to organizations and residents. As per the TADA, the FTC started aggregating shopper protestations identified with data fraud in 1999. The information is gathered from casualties who report their exploitation using the telephone or the FTC Web website. Incorporated into the database is data about the injury, contact data for the neighborhood police officer that took the casualty's report, kind of offense, and the organizations included. The database is made accessible to all law authorization organizations with an end goal to aid their examinations of fraud cases. Officers approach data about wholesale fraud guilty parties and casualties, including subtle elements of their encounters. A moment wellspring of information on data fraud is the Internet Crime Complaint Center (IC3), a collision between the National White Collar Crime Center (NW3) and the Federal Bureau of Investigation (FBI). The IC3 gets grievances identified with all Internet wrongdoing, including wholesale fraud. Information is gathered on the web and incorporate data on the casualty and wrongdoer by state,

In this era of globalization and cut-throat world of competition, it is virtually impossible to do business without using the internet and web applications. Internet gets used for processing the credit card or debit card sale and even for using to save the data of customers to the merchant’s database for future reference and to send promotional offers to the previous and patron customers. And on the other hand, hackers are trying their best to get the data stored on the merchant’s server by spoofing

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.

Over the past few years the internet has become a tempting place for criminals to acquire identifying information, such as passwords and banking data. In criminal’s haste to explore the exciting features of the internet, many people respond to “spam” unsolicited emails that promise them benefits, but request identifying information, without recognizing that in many situations, the requester has no intention of keeping their promise. In some situations, criminals reportedly have exploited computer technology to acquire large amounts of personal information. With enough identifying data about an individual, a criminal can take over that individual’s identity to conduct a wide range of crimes: for example, false applications for loans, credit cards, fraudulent withdrawals from bank accounts, acquiring other goods, or privileges which the criminal might deny if they were to use their real name. If the criminal takes steps to ensure that bills for the falsely acquired credit cards, or bank statements showing the unauthorized withdrawals are sent to another address other than the victims, the victim may not become aware of what’s happening until the criminal has already inflicted substantial damage on the victim’s assets, credit and reputation (Identity Theft).

When you begin to examine how the internet and crime are related, you must first examine exactly what the internet is and how it works. The internet is a global system of computers and networks that are interconnected and service billions of users at any given time. This could be considered a cybercriminals’ playground. Because billions of computers are connected via a vast array of private and public networks including many government agencies, it is easy to see how a cybercriminal could obtain valuable information or unleash denial of service attacks that could cripple many of these systems.

Saiz, Thomas J. "FRAUD IS A MAJOR SECURITY ISSUE FOR BUSINESSES." San Diego Business Journal, vol. 20, no. 15, 12 Apr. 1999, p. 19. Learning Resource Center, t7lrcproxy.iccms.edu:2129/sbrc/detail/detail?vid=0&sid=9b7a4376-1cc6-48ea-8008-4ece1e694af8%40sessionmgr4008&bdata=JnNpdGU9c2JyYy1saXZl##AN=1805123&db=b9h.

Being the fastest growing crime of today, it is estimated that every 79 seconds an identity is stolen (Consumer Reports 13). Empty promises made by solicitors in spam e-mail offer a free gift in exchange for personal information. These solicitors have no intention of sending any free gifts, but their scams help them obtain the private information desired. If enough information is given, criminals are able to apply for credit cards, apply for a fraudulent loan under the victim’s name, and make illegal withdrawals from random bank accounts. This is only one of the many ways a person’s identity could be stolen (O’Reilly).

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.