As more and more people use the internet
for e-commerce the internet fraud statistics are increasing pro rata. Payment
processors such as PayPal and Payza are consequently used by millions of
customers, both for individuals and for businesses.
The
top five internet scams
- Non – delivery of merchandise and Auction Fraud
Auction sites such as eBay are very popular
sites which attract thousands of potential customers every day. The scam here
is that the seller of the goods misleads the buyer into purchasing goods which
are not how they were described. Very often being of a much lower value or
merely a cheap copy of the original article. Payment is made before the goods
are dispatched, usually through PayPal or similar processor, by which time it
is difficult to reverse the payment if the buyer is dissatisfied. The non –
delivery of merchandise scam is when goods are sent “Cash On Delivery” and
signed for on receipt. Only then, will the customer see that what has been
delivered is not what was described.
- Spam and Identity Theft is on the increase according to internet fraud statistics.
Spam can be described as the receipt of
unsolicited emails sent by companies to millions of addresses at once. They
often lure customers into divulging their personal information such as bank
details, names and addresses and phone numbers. These emails often contain a
“link” which leads the victim to another site which looks exactly the same as
the genuine companies’ website. Once this link is opened the computer becomes
susceptible to worms, bugs and viruses which will gather personal information
or infect the hardware and cause many problems. This loss of personal
information is called identity theft and is on the increase at an alarming rate
according to internet fraud statistics.
- Credit Card Fraud
Many victims are conned into giving their
card details, passwords and PIN numbers through these fraudulent links
contained within the spam emails. Legitimate site will NEVER ask for these
details online or over the phone. Once your details are in the hands of these
scammers, they can be used to purchase goods for their own use but it will be
your money that pays for them! Internet fraud statistics indicate that this
scam is increasing at a rapid rate and the financial institutions are doing
everything they can to try and quell this.
- The Auto Shipping Scam
This scam usually occurs when a customer
signs up for a free trial offer for either goods or services. Card details are
required, prior to dispatch as a means of verification. The card will only be
charged after the trial period has expired. The scammers rely on customers not
cancelling within this time frame and so begin to take money from the given
account.
- Payment Gateway Scams
One of the most notorious payment
processing companies has to be Payza according to data gathered through
internet fraud statistics. It was
discovered to be processing transactions on behalf of illegally operated Ponzi scams
as well as the general public. Many honest individuals complained that money
had vanished from their accounts or the company failed to comply with their
refund requests.
