Precautions against internet scamming

by bxtypatoz (student)

University Degree Mathematical and Computer Sciences

Internet scamming

INTERNET SCAMMING

Introduction

Internet scamming is a form of fraud on the internet, which involves running of scams by some anonymous individual through the use of internet. Internet scamming is done mainly to steal money from the public or some personal property or information. This has been a great challenge to our technology, and has increased the risks of e-commerce thereby reducing the confidence of the consumers to transact using internet. Examples of activities associated with internet scams are investment schemes, identity fraud, and job or business opportunities. It has been one of the major obstacles in communication and information management.

Many people ignore the warnings about internet scams, and interesting enough they fall on the trap. Scammers target all kind of individuals all over the world ranging from the young to the elderly. This problem can be prevented through education. When someone is educated, it’s hard to fall in such traps of con schemers and con artists. There are several articles that discuss internet scamming. Three of them have been summarized below.

Impact of internet scamming on e-commerce

Introduction

E-commerce is defined by World Trade Organization as the process by which products are produced, advertised and distributed through telecom networks. It involves the buying and selling of goods or services over the internet (Laudon & Traver, 2009). Instruments or channels used to do e-commerce include internet, phone, fax among others. Through e-commerce, e-tailing, market research, business transaction and Electronic Data Transfer has been made possible. E-tailing involves a 24 hours retail shopping which provision of information and prospectus and ability to interact. Electronic Data transfer involves exchange of data between businesses.

E-commerce requires high security for it to be effective. This is because some people perceive internet to be a channel of realizing big gains and valuables from foreigners and they may end up compromising E-commerce (Burrel, 2011). Attorney Bill Rathford told Ecommerce times that "Blatant fraud, like the fake-news diet promotions and other online scams that have sprouted in recent years, only serves to undermine consumer confidence and eventually marketers and business as a whole," (Baker, 2011). The access to resources should be controlled and business transactions should be authenticated. The web pages should be used by users who are registered. This will help to avoid internet frauds such as scams.

Ways through which internet scamming affects e-commerce

Online auction scams.

This is a type of internet scamming in which goods or services are offered to the customers through auction houses in the internet, and after a customer has bid the goods or services, nothing is delivered or the customer receive counterfeit goods. In most cases, online auctions between individuals or small businesses deal with the customer directly. The site therefore has no any responsibility regarding the actions between buyers and sellers, since it is the seller who has the commodities and the buyer has the money to purchase.

This has a great negative impact to e-commerce because it reduces the credibility of online transactions. It therefore discourages customers or buyers from buying good on the internet. This may affects many genuine sellers and businesses in a manner that it may reduce the market of their products. The victims also suffers big losses which and they can’t be compensated by any one.

General merchandise retail scams.

In this case, the scammers create fake websites, which almost look exactly as the legitimate sites of famous companies or institutions. Retail goods are then offered to customers and once ...

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General merchandise retail scams.

In this case, the scammers create fake websites, which almost look exactly as the legitimate sites of famous companies or institutions. Retail goods are then offered to customers and once a customer has purchased, no delivery is made or counterfeited goods are delivered.

This also affects e-commerce by reducing the credibility of online transactions and causing firms to lose customers. Customers who happen to be victim also suffer loss of their money.

Online Investments scheme frauds

This is a form of internet fraud, which targets the security market. It is also called market manipulation schemes. The scammers can use the email or social sites to convey false information to the public in order to cause an increase in the stock prices of a particular company, and after the increase of the stock price, the scammer sells his/her shares. This is referred to as ‘pump and dump, scheme. The scammer can also spread incorrect information for the purpose of decreasing the stock prices, in order for them to buy the shares. This can make the involved party to make large profits within a short period of time. It also involves individual selling of securities, investment funds, or annuity sales by unlicensed people.

This form of internet scam affects the financial market performance of companies involved, and investors may be discouraged to buy shares from those companies due to the fear of making losses in their investments. The false information spread by scammers may reduce the image of the company involved, and the company mnay lose public confidence, and customers may end up not buying products of the company.

Phishing

According to Smith mikelle,This is a form of internet fraud, that involves obtaining personal information of other people through the use of created emails or websites that resembles the legitimate organisations such as banks or government institutions (2011). The scammers may obtain personal information of the victims through lottery scams, sweepstakes scams etc. Sweepstakes scum requires the ‘winners’ are required to immidieatly a submit their personal information or to provide a payment inorder to be given the price wonned. The party involved then uses the information or identity of another person obtained to perform illegal transactions. According to Rusch,The scammers usually aim at obtaining information such as passwords , user names, credit numbers, and so forth (2001).

Effects of this to e-commerce can be immense. Smith points out that Scammers may end up using other people identity to carry out online transactions. It would be hard to know whether you are dealing with the right person or whether it’s a fraudulent individual (2011). This is one of the major chalenge affecting e-commerce.

Business oportunity/work at home schemes scams.

This form of scam promise the victims great opportunities of making a lot of money without straining. The victims are usually enticede by the scammers using such statements as ‘be your own boss’.This involve adverising business opportunities for a given amount of money through email. The victim who fall into the trap of paying for the venture, end up losing the money by either not receiving the information concerning the venture, or the person end up getting works such as data entry and other works which can be done through the computer.customer ends up spending a lot of money through this form of scam. According to National Fraud Information center, many victim of this trap are people under the age of 30. This also poses threat to e-commerce, and may discourage people from doing online businesses.

Advanced payment scams

This requires a person to give an advance payment in order to be given something of greater value such as loan, credit card or job. After the money has been given it losts and the contact breaks. The scammers use methods such as persuasion, referencing organizations or individuals, false evidence of legitimacy, mimicking, urgent need of response, scarcity implication or they reciprocated themselves (Chang, 2008).

This may affects electronic operation of institutions such as banks, microfinances among others. The result may be reducing the credibility of online transactions, as well as losses to the victims.

Safety measures for consumer protection

The followings are some of the measures to be taken to avoid being a scam victim.

Phishing.

To avoid phishing, one has to do several things. First is to keep antivirus up to date. This is to prevent technological exploits by scammers since most anti virus have been protected from some technological exploits by some signatures. Another important measure to take is to avoid clicking at hyperlinks in websitesites or emails especially if you are not farmiliar with the source (Paulus, Pohlmann, & Reimer, 2005). Thois is because the hyperlinks may lead you to fake websites and may try to obtainsome personal information.

Anti-spy softwares also help to reduce phishing by preventing the users from getting the mails. Its also important to verify the https or ensure the website is encrypted genuinely before giving sensitiveinformation.you can also take some internet education in order to understand and get a clear picture about scams. You should avoid accessing personal account through public wireless internet to avoid risk of thieves hacking the system and steal their personal information. (Smith, 2011)

You should also avoid entering information to pop-up windows that appears on the screen, no matter how genuine and official it appears. Instead you should close the window by clicking at X, because sometimes you may click cancel and it redirects you to another link. Hosts files should be secured from hackers.

Online auctions

When carrying a transaction in online auction sites, you should counter check if you are dealing with a genuine company from consumer protection agency or from the better business agency. Find out the nature of the companies and obtain their phisical adress. If you are dealing with an individual, verify if the individual really exists.On making online payment, you should confirm how the seller want to receive the money. It is always good to include an legal agent in such transactions.

Confirm with the seller when the goods will be delivered and by what means, and find out if shipping and delivery fee are summed up in the price or if you need to pay extra. It is also adviced to inquire about warranty and returns of the goods and the policy governing returns and warranties.

When carryng online transaction, avoid making payment through wire transfers. Credit cards are preffered instead, because they are safer since it easy to dispute any problem that may arise.

Other measures to be taken

Use common sense.

When you receive emails or offers from websites offering great opportunities or great cash, it is important to think carefully if the offer can really be true. For example, you cant receive an email informing you that you’ve won a lottery of say a million dollar and still and still be required to pay some few dollars to get the money. It doesn’t make sense. Therefore its important to determine if such mails have sence in them.

Filter spam.

You should prevent your mailbox from receiving scams by configuring your email to filter the scams. This will help you avoid traps from different scams

Don’t do any transaction that requires urgence.

Many scammers usually want the victim to do the transactions in a hurry (Chang, 2008). Its important to take your time and ensure every activity runs smoothly.scammers always want you to give them money immidieatly. You should say no to such transactions which wnta you to think under pressure. Therefore any individuals who insist that you need to haste should be taken with a lot of caution.

Online transactions should be safeguarded.

To avoid your identity from being stolen or your credit cards from unauthorized charges, you should buy goods from trusted sellers or us payment services that doesn’t involve giving financial information.if you use online payment services that requires you to gine financial information such as credit card numbers, ensure the website adress begins with “https” which will ensure encryption of your information, hence unauthorized person cannot access you information(Shadel, 2012).

Government Action on internet frauds

There are several departments and agencies in the United states that deals frauds in internet. Some of these agencies are FBI, Departent of Justice, Federal Trade Commision among others. Identity Theft and Assumption Deterrence Act is a federal law thatdeals with the problem of identity theft which was enacted by the Government in 1998. According to this law, any one who “knowingly transfers or uses, without authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law” (Federal Trade Commission, 2004).enacting of this Theft and Assumption Deterrence Act paved way to many other federal laws such as Identity Theft Penalty Enhancement which was established in 2004. This law deals with illegal possession of person identification with an aim of wanting to commit a crime with it.

According to Thompson Reuters news on Fraud magazine,FBI are aware of the new ways used by scammers to commit fraud and they are in a mission to investigate the suspected illegal insider trading associated with internet scamming ( 2012)

Conclusion

The above measures should be for consumer protection against internet scamming. This will help to protect e-commerce from being exploited by scammers and will generally ensure the management of information and communication on the internet between consumers and companies or between buyers and sellers. The consumers and firms should take responsibility of fighting internet scamming to safeguard themselves from frauds carried out by the scammers. The Government should also take action against internet scamming, by coming up with new policies against this crime. New rules and regulation should be formulated regarding websites owning and email accounts. This may help to avoid scammers misusing the emailing services and creating websites that resembles legitimate sites, which they use to fraud the public.

References

Baker, P. (2011, september 23). Online Ad Scams, Part 2: Fighting Back. Retrieved March 18, 2012, from E-Commerce Times : http://www.ecommercetimes.com/story/73343.html

Burrel, J. (2011). User Agency in the Middle Range: Rumors and the Reinvention of the Internet in Accra, Ghana. Science Technology and Human Values(0162-2439) , 139-159.

Chang, J. (2008). An analysis of advance fee fraud on the internet: protect yourself. Journal of

finance crime(1359-0790) , 71-81.

Federal Trade Commission.. (2004, july 15). Identity Theft and Assumption Deterrence Act. Retrieved March 11, 2012, from Federal laws: Criminals: http://www.ftc.gov/bcp/edu/microsites/idtheft/law-enforcement/federal-laws-criminal.html

Laudon, K., & Traver, C. (2009). E-commerce: business, technology, society. Upper Saddle: Prentice Hall.

Paulus, S., Pohlmann, N., & Reimer, H. (2005). ISSE 2005: securing electronic business

processes : highlights of the Information Security Solutions Europe 2005 conference. New York: Springer.

Reuters, T. (2012, February 28). Five years worth of fraud investigations ahead - FBI. Retrieved March 18, 2012, from Fraud magazine: http://www.fraud-magazine.com/home.aspx?pageid=50

Rusch, J. (2001, may 6). The Rising Tide of Internet Fraud. Internet Fraud Cyber Crime II. Retrieved march 11, 2012, from United States Attorney’s Bulletin:http://www.usdoj.gov/usao/eousa/foia/foiamanuals.html

Shadel, D. (2012). Outsmarting the Scam Artists: How to Protect Yourself From the Most Clever Cons. Washington DC: John Wiley & Sons.

Smith, M. D. (2011). Identity, Theft, Phishing and Scamming: Protect Yourself. All hands 1134 , 22-23.