Dangers of = the Internet
Society has changed in the ways that we do business, through the invention of computers= and other technologies. Time can = also be attributed to these changes. We have become more and more dependent on computers and its related technologi= es, today, more so than ever before. It has become a necessity for an individual to have access to a computer. Computers have become apart of out everyday lives. We use comput= ers to do a wide variety of things ranging from typing a term paper to seeking 911 emergency help.
Take a look around. You will notice that = there are computers in virtually every place of business, most homes, schools, libraries, etc. This quick assessment will give you an idea of how important computers have become in = our lives. Our lives have become more simplistic.
Making long distance telephone calls, writing a letter, finding a book on a particular topic at the local library, paying your bills, managing your household finances, finding a birthday card, shopping, etc., – these are some of the tasks that have been made easier through the use of the computer.
Advancemen= ts in telecommunications allows us to “reach out and touch someone” on the other side of the globe. Cellular phones, faxes, e-mail are but a few contributions of the telecommunication advancement. Together the computer and telecommunication advancements bring us to “Cyberspace”.
We have be=
come
known as “A fast food Society”. “A fast food Society” =
is a
desire we have to have what we want, when we want it, and how we want it.
The intern=
et has
become an integral part of our lives.
We depend on the internet for information, and as a way to
communicate. This statement h=
olds
true for even criminals, who use the internet as a way to harm others. There are various crimes that are
committed on the internet against others that we all should be aware of.
Cybercrime
Cybercrime= as defined by Michael Kessler and Associates, Ltd. exist “when a compute= r is used by a criminal to commit crimes and steal information from the comfort = of his/her desk.” I think = that we all must agree with The Kessler Report on just how easy it has become for criminals to commit their crimes. The internet and computer has literally made stealing, harassing, invading simple.
Internet Fraud
The Intern= et Fraud Organization defined “internet fraud” as any type of scheme that uses components of the internet to mislead individuals about a particular product or item. People who e= ngage in fraud use the internet to carry out their schemes quickly. These criminals try to present their schemes in a way that appears to be as legitimate as the goods and services that other legitimate merchants offer.&nbs= p; This however, undermines the confidence of the consumer in the inter= net and e-commerce (h= ttp://www.internetfraud.usdoj.gov/#What%20Is%20Internet%20Fraud). Maricopa County Attorney’s O= ffice states that the top ten online frauds for 2002, which cost victims at least= $14 million, were: Online Auction Sales, General Merchandise Sales, Nigerian Money Offers, Computer Equipment= and Software, Internet Access Services, Work-At-Home Schemes, Information/Adult Services, Travel/Vacations, Advance Fee Loans, Prizes and Sweepstakes (Maricopa).
IFCC repor=
ted in
its 2002 Annual Internet Fraud Report, “for the third straight year
Internet Auction Fraud was the number one reported offense - comprising 46%=
of
referred complaints”. T=
his
statistical report covered the period of January 1, 2002 through December 3=
1,
2002 and was released to the public on April 9, 2003. This report population of
complainants was 75,063.
Credit/Debit Card Fraud made up nearly 12% of the complaints. Among victims who reported dollar =
losses
– Nigerian letter fraud ($3,864), identity theft ($2,000) and check f=
raud
($1,100) complaints. The repo=
rt
continues on to point out that the top five states for victims of Internet
crime were
An article= , “Online fraud cases Triple”, written by Steve Pedro suggests that internet criminals cruise the auction sites looking for individuals to take advantage of. He also suggests that these crimin= als take advantage of the American Banking laws as part of these crimes that th= ey commit against the individuals with their scams.
On-line Auction
In an onli=
ne
auction scam an individual will place an item for sale that is supposedly of
value. This item could be any=
thing
from jewelry to computers. Th=
e item
will be placed on an online auction site.&=
nbsp;
Criminals will then engage in what is known as
”Shill bidding”. =
Shill
bidding is when someone, who has no interest in the item that for sale, pla=
ces
a bid on an item to drive up the bidding price. Normally this is done by a group of
people or by an individual who has created many accounts. Shill bidding is illegal and consi=
dered
a felony. If an individual is
caught or suspected of Shill bidding they are educated on their first offen=
se,
and suspended on any further offenses.&nbs=
p;
Sometimes individuals selling things on auction sites do not realize
that they are doing anything illegal when they are driving up bidding prices
(Rusch).
The indivi= dual (buyer) who has the highest bid will then be informed of such and will be requested to send their money to the seller. This can result in not receiving t= he merchandise or receiving a counterfeited item. In either case the buyer is the on= e who has lost out. Another way of = scamming online auctioneers is by “shill feedback”. Buyers who are interested in findi= ng out if other buyers have had favorable experiences with the seller can check out their feedback profile (Rusch). Feedback is comments and ratings made by others who have had prior trading experience with an individual of an online auction site. Simply put this is your “reputation” at that online auction site. Some individuals create secondary accounts so that they can artificially raise the level of their own feedback (eBay).
Investment= fraud is another area of great concern, according to Jonathan Rusch. “Betwe= en 200 and 300 online complaints are received a day regarding possible securit= ies fraud online”, reports the SEC (The Securities and Exchange Commissio= n). Market manipulation schemes are fo= cused on the most by law enforcement (Rusch).&nb= sp;
Pump and Dump Schemes
In this on= line market manipulation scheme which is also known as “hype and dump manipulation”, a company’s stock is publicized through false and misleading statements on the market. The criminals of this scam then make a huge profit by selling their cheap stock onto the market. = The criminals post messages that urge other s to buy a particular stock quickly= or to sell a particular stock before its prices drop. This person (criminal) will claim = that they have the inside scope on the stock.&n= bsp; These individuals are typically employed by the company in which they are pumping the stock.