Fraud in Internet – campaign against illiteracy for newbie

Every day in the Internet appears some news trumpeting all over the world that some company has invented a new way to protect from fraudsters, raised security level of payment systems and etc. But swindlers are also not going to make no headway. Their keenness of wit may and even should cause envy. Some of them look for loopholes in laws, software and hardware; others directly contact their victims, then work over them and collect cash award for an artificially done work. Fraud is one of the most profitable businesses and one can hardly object this.

Scales and number of financial machinations carried out on the Internet have reached that mark that prejudices absolutely all positive sides of “virtual economy” as a new segment of financial sphere. And it’s true – what convenience and especially security of electronic transactions can be mentioned if stealing in Internet occur more often than in Central Park of New York. And the work with payment systems began to resemble a medieval merchant who was carrying his goods cross-country and was constantly attacked by the robbers.

Surely, safety depends also on the users themselves as sometimes ignorance level deprives them of their hard-earned money. So, 17 years old American boy has earned one million of dollars during several months by posting in the Internet an announcement where he suggested investing of some sum and paying back 25 times more, and it curiously enough, but people trusted him…

World Wide Web remembers a lot of interesting stories in its. However, to describe some general picture of fraud industry in the Internet we decided to systematize all kinds of fraud first.

Phishing is one of the oldest and primitive kinds of financial fraud, the purpose of which is to get user’s ID information. Actions of phishers are almost always have easily detected schemes. Phishers organize blanket mailing which contains various threats, such as: server is attacked by viruses and we need you login and password to keep your funds. Very often letter is attached by a link to some prominent company, e.g., https://www.paypal.com/us/cgi-bin/webscr?cmd=_login-run, but they themselves redirect you to their own website. There victims leave all their payment details, and further withdrawal of money is just a pie.

Lately all mail services, browsers try to create protection from such letters but fraudsters are still evading all the obstacles by thinking out new and new scenarios. It’s not a good idea to rely fully on the protection provided by the company. The main issue is to be attentive and to follow the following rules:

1) When you receive messages with request to provide some of your personal information, do not hurry up to do this;
2) Mail without digital signature is more likely a fake;
3) Be careful with the threatening mails;
4) Try not to use plastic cards on suspicious websites. Do not enter PIN codes of your plastic cards, wallet numbers and passwords on those websites;
5) If mails contain any HTML-forms do not fill them out;
6) URL when you enter into your account should begin with "https://", but not with "http://".

Vishing is one of the various kinds of phishing which is realized in accordance with the same scenarios. Victim receives a message with request to fill up a form on one site. This form requires filling of such information as wallet number, login or password to it. In several days site closes and it’s very hard to track that fraudsters.

Fraud layouts are similar to the phishing ones, the only difference is that fraudsters in their messages ask to call on some city number. And then they read on the phone their request to fill out some form on some site.

Protection means are basically the same ones as from phishing. But the main rule is: do not relax your vigilance.

Pharming is redirection of victim to a false address. Scenario is usually as follows: victim receives an e-mail with some file attached (indeed it’s a virus) and also a link to the site of fraudsters where it is activated by means of script. Later then you enter your bank or payment system website you are being redirected to the site of fraudsters where they ask you to fill out the same forms as on the real site. Very often the most part of victims fall for the bait. And from the fake site all your data are transferred to the fraudsters as well as your money.

Advance fee fraud is one of the most interesting kinds of fraud which usually catches out those who have a love for easy money. Layout of this kind of fraud is very simple.

Potential victims get an e-mail the sender of which is usually some important person, e.g., some politician or businessman who were caught on some machinations. In letter body they say that they need some help in the form of some sum and then promise to share their excess profits. Sometimes victims receive mails from lawyers informing that some person with your surname has died. They offer you to help in withdrawal money from his account. Usually it is a matter of several millions of dollars and your part is 40% (everybody will agree that it’s a tidy sum). Surely, the victim will not get a single cent and only muddle money.

Such kind of fraud is mostly known as Nigerian letters.

Carding is one of the most widespread kinds of fraud consisted in using of somebody’s or stolen plastic card, the funds from which are more often used to pay for some purchases or services Immediately after stealing. Plastic card data are usually taken from cracked servers of Internet shops, payment and processing systems. Also data can be stolen directly from personal computer by means of various viruses, Trojans and worms, as soon as your payment details appear in the hands of the swindlers there is nothing easier for them than to withdraw money from your account.

Skimming is one of the kinds of carding. To get damp-data from card magnetic striping skilled swindlers use skimmer – a tool to read the magnetic striping of plastic card. This tool is a device with magnetic head that is able to read information from magnetic film. Also complete set of skimmer includes converter, memory and adapter for connection to computer. Very often skimmers are used by waiters in the shops. They manage to scan card information when they carrying plastic card from the customer to payment terminal.

According to the latest data, losses from carding have grown up to not less than 25% this year. The main protection from carding is your vigilance. Bankers think that the best solution of this problem can be insurance. There are some other points that will help you stay with your money:

1)At purchasing of card necessarily find out about insurance policy.
2)Never put down PIN code of your card on its reverse or into a note book.
3)Don’t give your card for payment in suspicious places. Keep an eye on whose hands it is and do not give it left and right.
4)Watch out that at settlement sellers and waiters do not use skimmer.

DDos-attacks – this term causes panic of even the richest and most prominent payment systems. The aim of these attacks is to disable some definite site for that or this period of time. If site is Ddos-attacked it cannot be viewed and, what is the most important, the server on which site is loated stops functioning. It is not difficult to fight against ddos-attacks but expensive. Knowing this fact, swindlers very often blackmail site owners and earn considerable money on this (read interview with DDoS-specialist in the previous issue of TJ).

Internet shops and auctions are also one of the ways to steal money from users, though it may sound strangely enough. Electronic shops became an excellent way to earn money for fraudsters. During the last year fraud in that sphere has increased almost 2 times more and lovers of easy money continue inventing the most interesting ways to earn it.

Perhaps the most popular ones are the so-called one day-shops. Fraud layout is very simple: fraudsters register domain with sonorous name, create there Internet-shop, stuff it with various goods but give prices 30-40% lower. Having seen this, potential buyers lose their heads and order lots of merchandise but more often get nothing, and the shop quickly closes.

There is one more way of deception – sending of incomplete order, and in this case buyer is also appeared to be deceived.

Very often swindlers realize their plans by means of imperfect script of Internet shop. It’s no trouble at all for good specialists to crack it and to collect users’ card details and then to spend all funds on merchandise of world Internet-shops.

Last year swindlers very often stole data bases of electronic shops to blackmail those shops to get money for retuning of data. When shops do not want to pay the necessary sum this base is posted somewhere on forums.

Very often people are deceived by means of false information on investment company. Data submitted in most cases are false as well as the interest promised. After some definite investments the person to whom you have given your money disappears and there is no where he can be.

Donations are widely spread both in the USA and Europe. Nine of ten people donate their money to some funds. And swindlers make use of it. Having created some fake fund and thinking out its aim they bravely spread information by all possible means putting money into their pockets. So, it’s necessary to be watchful in all aspects including the most human ones such as donations.

During the last years the word HYIP became almost the most popular word in the Internet. People offer you earn unreal money by investing sites and covering by beautiful advertisement. It’s strange, but most people believe them.

As you have already understood HYIPs are not safe and we decided to divide them into 2 categories. SCAM it is a real fraud aimed to some earning. Founders offer you great interest: more that 30% a day that cases suspicions. This interest money is usually paid from new intake or not paid at all. PONZI is analogue of pyramids. Founders create some nice site and then begin to attract investors by offering income approximately 50% a month. Terms of their work depend on amounts and speed of investing. Usually almost all participants remain deceived excluding those who top these pyramids. So, we can say with confidence that in 99% of cases HYIP is based on deception of investors.

Thus, one can draw a conclusion that fraud became not a defect of modern Internet but more likely its norm, or sub-segment of virtual economy, which develops independently and is feed by forces and finances and constantly expands. Winning victory over fraud is hardly possible, and the only reasonable and even banal piece of advice is to stay vigilant. Use all your 5 senses and sharpness of wit and your money will not change its location, i.e. will remain in your wallet.

Comments

Hi. At my lemonade stand I used to give the first glass away free and charge five dollars for the second glass. The refill contained the antidote.
I am from Belize and now study English, give true I wrote the following sentence: "We personally review every search engine to make sure it."

With best wishes :o, Phil.

Donation is best for all people but can you think people from Africa are sufuring to much for Ophans,HIV/AIDS and other Cronics Deseases

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