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FBI: No Net user is immune to online fraud
- — 08 March, 2001 09:16
The top complaint reported was online auction fraud, with nearly 66 per cent of complaints coming in that category. This was followed by non-delivered merchandise or payment at 22 per cent and credit or debit card fraud at nearly 5 per cent.
The figures come from the first report on Internet fraud released by the Internet Fraud Complaint Center (IFCC), a partnership between the US Federal Bureau of Investigation (FBI) and the National White Collar Crime Center. The report covers the six-month period from 8 May, 2000 to 8 November 2000.
These frauds led to over $US4.6 million in total losses, with the average loss being $US894. Despite such a high average amount, only 17 per cent of the losses were over $US1,000. The majority of losses totalled less than $US500. Investment fraud led to the biggest losses, while auction fraud, despite being the largest culprit percentage-wise, led to the lowest average losses.
The perpetrators of the fraud tend to be male, according to the report, and are overwhelmingly US residents (92 per cent) living in large states; most (17.3 per cent) live in California. The average victim of online fraud also lives in a large and populous state -- California, Texas, Florida or New York -- is male and between the ages of 30 and 50. The report notes however that women have also fallen prey to online fraud, and that the ages of victims range from 10 to 100.
Over 50 per cent of fraud victims are initially contacted by e-mail, with 38 per cent of contacts coming via a Web page, the report said. The leading methods of payment in fraud cases are money order and credit card.
The report includes data taken from over 20,000 complaints filed on the IFCC Web site. The report is based on the nearly 6,100 complaints referred to law enforcement by Nov. 8, with the majority of the complaints involving the Internet; not all IFCC complaints involve the Internet.
A copy of the IFCC report is available at http://www.ifccfbi.gov/strategy/6monthreport.pdf.