Fraud
Fraud is a type of criminal activity, defined as ‘abuse of position, or false representation, or prejudicing someone’s rights for personal gain’. Put simply, fraud is an act of deception intended for personal gain or to cause a loss to another party. The general criminal offence of fraud can include deception whereby someone knowingly makes false representation or they fail to disclose information or they abuse a position. The term ‘Internet fraud’ refers generally to any type of fraud scheme that uses one or more components of the Internet – such as chat rooms, e-mail, message boards, or Web sites – to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to other connected with the scheme.
There are few tools to use for the internet fraud which are Emails, Chat rooms, Websites, Message Boards, Portals and Web Application. Recently there many ways people using to do internet fraud or internet scam but there have seven techniques are popular to use internet fraud. Credit/Debit Card Fraud is involves the use of credit/debit card to obtain money or acquire properties without appropriate authorization. Non-Delivery of Goods/Service Fraud is refers to scam in which people are encouraged to pay for goods and or service via a web portal, and thereafter nothing would be delivered to the buyers. Pyramid Fraud is a system of luring investors to invest in a scheme in which the investment firm promises abnormally high returns, meanwhile the early investors shall be paid with investment capital obtained from successive investors. In Auction Frauds, people are encouraged to participate in online auction and when money must has been paid for specific items; the fraudster would send either a lower standard item or counterfeit. Spoofing is a type of fraud in which a fraudster masquerades as another person by using another person’s identity to transact business and obtain vital information such as bank account numbers, credit card numbers and associated passwords. Phishing Scam is a form of spoofing in which the webpage of a particular entity can be duplicated and positioned with url for the purpose of luring people to divulge vital financial information. Identity Theft is the entails the use of another’s personal information without appropriate consent, for the purpose of fraudulent practices. To overcome the problems always prevent our self from internet fraud. Do business with those to know and trust. Be sure to know who the company or person is and where it is physically located. Businesses operating in cyberspace may be in another part of the country or in another part of the world. Resolving problems with someone unfamiliar can be more complicated in long-distance or cross-border transactions. Understand the offer. Look carefully at the information about the products or services offered, and ask for more information, if needed. A legitimate business will be glad to provide it; a fraudulent telemarketer won’t. Be sure to know what is being sold, the total price, the delivery date, the return and cancellation policy, and the terms of any guarantee.
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The federal telephone and mail order rule, which also covers orders by computer, requires goods or services to be delivered by the promised time or, if none was stated, within thirty days. Print out the information so that have documentation. Check out the company’s or individual’s track record. Ask the state or local consumer protection agency if the business has to be licensed or registered, and check to see if it is. Call to check for complaint records with consumer agencies and the Better Business Bureau in the area. But keep in mind that fraud artists can appear and disappear quickly, especially in cyberspace, so lack of a complaint record is no guarantee of legitimacy. Never give bank account numbers, credit card numbers or other personal information to anyone which don’t know or haven’t checked out. And don’t provide information that isn’t necessary to make a purchase. Even with partial information, con artists can make unauthorized charges or take money from account. If you have a choice between using credit card and mailing cash, check, or money order, the League recommends using a credit card. Always dispute fraudulent credit card charges, but you can’t get your cash back.
In March 2013, two Malaysian women lost more than RM160,000 in Internet scams after they were cheated by Nigerian men impersonating as Caucasians. Melaka CCID chief, Supt Soh Hock Sing said in the first case, a housewife lost RM155,343 to a ‘Caucasian’ man she met on Facebook in June last year. The suspect told the victim that he would send her jewellery and cash as sign of his affection. He then contacted the victim claiming the items were detained by authorities and she had to pay to release them, he told a press at Melaka police contingent here, yesterday. Unsuspectingly, the victim, 52, then deposited money into five accounts including that of a local woman,55. Soh said that when the items did not arrive, the housewife realised that she was cheated and made a police report on Feb 22. After she was arrested, the local woman admitted knowing the Nigerian man, opening bank accounts, withdrawing money and receiving commission of RM250. In another case, an assistant storekeeper with an electronics company lost RM10,500 to a Nigerian man who used the same tactic. Soh said police arrested a local woman,33, and a Nigerian man,28, after receiving a police report from the victim, 38, on Jan 18. Nineteen cases of internet scams were reported since January involving losses amounting to RM240,925. In conclusion we think that computer fraud is a very common problem many people seem to be coming across online, especially people who are not educated to keep safe online. It is very important not to give your details to a website just because they have a pretty webpage. Do some research on the website or company in question. If they have a phone number, ring it and ask for assistance. If it’s a real business they will have a person answer the phone not an answering machine.
by Raji
Issue in Computer Security
By Raji