FBI Reports All-Time High In Internet Fraud Losses 121
eldavojohn writes "While the number of cases dropped, the amount of money lost to internet fraud reached an all-time high in 2007, a new government report states. 'According to the 2007 Internet Crime Report, the Internet Crime Complaint Center (IC3) received 206,884 complaints of crimes perpetrated over the Internet during 2007. Of the complaints received, more than 90,000 were referred to law enforcement around the nation, amounting to nearly $240 million in reported losses. This represents a $40 million increase in reported losses from complaints referred to law enforcement in 2006.' The top ruses used by the fraudsters involved pets, romance and secret shoppers. The original report[Large PDF] is available online, and it contains some interesting graphs. One indicates that the two largest types of fraud are Auction Fraud and Non-delivery, which combine for over 60% of all cases. As Computerworld notes, men are more likely to fall for scams than women, and over 30% of losses are between $1,000 and $5,000. The report also contains data about the location of the perpetrators (Nigeria only accounts for 5.7%), age demographics, and contact methods."
pretty obvious ruse (Score:2, Insightful)
who exactly is falling for this? wow.
Efficiency (Score:5, Insightful)
Re:Corporations should be held more accountable (Score:4, Insightful)
Financial corporations only give up on fraud when the cost of recovery is more that the amount defrauded - and sometimes even then they persue the fraudster just to set an example, for they don't want to be known as an easy mark.
They can't just raise their rates and let the customer cover it, because they have competition which might be more efficient and run them out of business.
Sites need to be more accountable (Score:5, Insightful)
But when paypal or ebay get's compramised, they don't go to the police. They take absolutely no responsibility for their lack of security, and they don't even try to prevent future crimes. 120% of their work goes towards dodging blame and making the victim pay for their losses and do any paper work.
These sites are the perfect accomplices for online criminals. And they profit from it. All those fake handbags and sneakers on ebay still account for millions in listing fees and work towards their usage statistics.
The police need to investigate these crimes and send the bill to the sites where the crime occured. They should also automatically fine the criminals 20x what they stole and charge them for rent for the time they lock them up (which can be as little as 3 days, I don't think this matters).
Credit card companies are also to blame. Now it is easier than ever for buyers to file false claims and get merchandise for free. If any credit card fraud occurs, even in the smallest amounts, these cases need to be processed by law enforcement and fines need to be handed out. Too many people know they can get away with it, and keep repeating the same crime.
Re:The secure way to store your money. (Score:4, Insightful)
Re:And yet... (Score:3, Insightful)
Also:
Congress recently passed a law that entitles the citizens to request One credit report per year from each of the agencies. So you are no longer barred from accessing your own data.
Re:And yet... (Score:3, Insightful)