Internet Fraud Complaints
Wall Street Journal, April 9, 2003
The number of cases of internet fraud rose sharply in 2002, nearly tripling the number from 2001. The total dollar loss due to this crime in 2002 was $54 million, compared with $17 million the year before. The most common complaint was auction fraud, followed by nondelivery of promised merchandise, credit-card fraud and fake investments, according to the report from the FBI’s Internet Fraud Complaint Center. Nearly “80% of known perpetrators are male and about 71% of those bringing complaints are also male” (wsj.com). The average loss to victims of identity theft was $2000.
As the internet opens up to more and more venues of e-commerce, there is an increasing number of fraud – scam artists or scumbags who are only there to rip someone off. There is no clear explanation as to why reported incidents almost tripled from 2001 to 2002, but perhaps the reason is it is becoming easier to report such cases of deceit. This article implies the need for security on the internet and shows what a problem internet fraud has become.
This topic of fraud has become evermore significant to all businesses, as the internet is definitely the way of the near future. Stores have opened up all forms of business on the web, and in order to accept as many customers as possible, they have let down their guard against those who would use the system falsely. In order to continue serving the public, the business world will have to find a way to effectively deal with internet fraud.