Information located in this website is from the
U.S. Federal Trade Commission and the
U.S. Department of Justice

What is internet fraud?
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.

What are the major types of online internet fraud?

·  Auctions and retail schemes, online auctions being the number  one avenue for internet fraud

·  Business Opportunity/"work-at-home" schemes

·  Identity theft and fraud

·  Investment schemes

·  Credit Card offers

·  Credit repair

·  Vacation Prize promotions

·  Nigerian money offers - This scheme involves someone claiming to be a Nigerian official, who promises big profits in exchange for help moving large sums of money out of their country

·  Advance fee loans

·  Internet access services

·  Health and diet scams

·  Free goods, like long distance phone cards, computers, electronics, etc.

·  Cable descrambler kits

What is being done to combat internet fraud?

The Department of Justice

·  Prosecuting cases throughout the country against individuals and groups who have engaged in a variety of types of internet fraud

The Internet Fraud Initiative - a joint initiative between the Department of Justice, Federal Trade Commission, Federal Bureau of Investigation and the National Advocacy Center

·  Developing information on the nature and scope of the problem

·  Developing and providing training for prosecutors

·  Establishing a program of public education

The Federal Trade Commission (FTC) - has authority to bring civil lawsuits to federal district courts. Since 1994, the FTC has brought over 140 law enforcement actions against over 490 companies and individuals.

·  FTC Surf Days - the FTC, along with other state and federal agencies, search the internet for sites containing deceptive claims. The site operators then receive warnings.

·  Teaser Sites - fake scams constructed by FTC staff where as a consumer clicks through the site a warning eventually appears stating that, "If you responded to an advertisement like this, you could get scammed!"

Consumers Fraud Sentinel Database

·  Provides secure internet access to over 220,000 consumer complaints for over 200 law enforcement organizations across the United States and Canada

National Cyber Security Alliance (NCSA) - joint effort between industry and the government to foster awareness of cyber security through educational outreach and public awareness

What precautions can I take to secure my personal and credit information?

·  Keep your personal information private.

·  Be especially careful about online communications with someone who conceals his true identity.

·  Use a secure browser.

·  Use inexpensive filtering software to filter programs to protect your family from inappropriate sites.

·  Pay your bills online with credit card instead of using personal checks.

·  Review your telephone bill and other bills and challenge any charges that you don't recognize.

What precautions can I take when conducting business online?

·  Beware of offers that sound too good to be true.

·  Watch out for "advance fee" demands.

·  Take your time in making investment decisions, research the potential investment opportunity thoroughly.

·  Have an attorney or accountant look at any proposed contracts.

·  Call every supplier or customer of the company and verify that they really do business with the company.

·  Check out the people running the company.

·  Contact your local consumer protection agency and the consumer protection agency in the city where the company is headquartered for more information about the company.

·  Interview business references in person at the place of business if possible and try and get a number of names to choose from. This will help you avoid talking with people who were paid to give favorable responses.

·  Get earnings claims in writing when considering internet-related business opportunities.

·  Get references on any travel companies and get details about the trip in writing, including the cancellation policy.

·   Consult with health care professionals before buying any "cure-all" that claims will cure an ailment quickly or offers easy solutions to a serious illness.

What precautions should I take when shopping online?

·  Keep your password(s) private.

·  Don't judge item by initial appearances posted online.

·  Check out the seller, especially when shopping online auction sites.

·  Shop with companies that you know or at least know who you are dealing with, make sure that the company is legitimate.

·  Get all the details involved before making an internet transaction, such as complete descriptions, total price, return policy, etc.

·  Ask your credit card issuer about "substitute" or "single-use" credit card numbers - these allow you to use your credit card without putting your real account number online.

·  Only share credit card information when buying from a company that you trust.

·  Pay by credit or charge card online, because you have a legal right to dispute charges for goods and services that were never ordered or received.

·  Keep a record for proof of the transaction.

How Can I File a Complaint About Internet Fraud?

You can file complaints about specific types of fraud complaints with the following agencies:

·  Consumer Fraud: Federal Trade Commission or toll free at 1-877-FTC-HELP

·  Commodities Fraud: Commodity Futures Trading Commission (CFTC)

·   Securities Fraud: SEC Enforcement Division Complaint Center or your state securities regulators.

If you think that you've been the victim of a fraud scheme that involved the Internet, you can also file a complaint online with the Internet Fraud Complaint Center, a joint project of the FBI and the National White Collar Crime Center.

How can I get more information about internet fraud?

Government Web Sites

·  U.S. Department of Justice

·  Federal Trade Commission

·  Internet Fraud Complaint Center

·  Federal Deposit Insurance Corporation

·  Securities and Exchange Commission

Nongovernmental Web Sites

·  American Association of Retired Persons

·  Better Business Bureau

·  Internet Fraud Watch

·  Internet ScamBusters

·  GetNetWise.org

·  National Cyber Security Alliance

The Northern Kentucky University Police Department does not advocate the use of any of the above-listed Web sites.  They are listed for informational purposes only.

Back to Crime Prevention Links