Internet Fraud - The Extent Of E-fraud
A survey of 140 members of the Worldwide eCommerce Fraud Prevention Network indicated that many international firms consider online fraud is a serious but manageable problem. However, despite their assertion, only 10 percent of those firms surveyed spent more than three percent of their total revenue on fraud protection, while 60 percent spent less than one percent. Of the varieties of online fraud, one-third found the difficulty in prosecuting Web-based fraud to pose the greatest threat to their online businesses.
The Internet Fraud Complaint Center received more than 20,000 complaints during its first six months of operation, according to the FBI and the National White Collar Crime Center. Computer users made more than 37.5 million visits to the Web site. Auction fraud was the most reported Internet fraud, comprising 64.1 percent of all referred complaints. Several of the complaints involved monetary losses of $100,000 or more, including one involving more than $366,000. Internet-related fraud complaints to the Federal Trade Commission were up from 8,000 in 1998 to 23,000 in 2000 (not including identity theft).
FURTHER READING:
Atanasov, Maria. "The Truth about Internet Fraud." Ziff Davis Smart Business for the New Economy. April 2001.
Beliakov, Victor; and Thomas Barnwell. "Investigative Investing." Asian Business. April 2000.
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Wallerstein, Lisa. "Fraud in the 'New Economy."' Business Credit. November/December 2000.
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