Computer Fraud

Computer fraud refers to a scheme or illegal activity that alters, changes, damages or disables computers, such as hacking, or that uses computers or the internet to steal information or services. Generally defined, fraud refers to any deliberate deception carried out by one party to achieve financial gain while harming another party. Consumers should be aware of the types of computer fraud that exist, how to lower the risks of becoming victim to computer fraud, and what steps to take if you have been the victim of internet or computer fraud.

Computer fraud via the internet resulted in over fourteen and a half million dollars in consumer losses in 2002. Computer fraud is carried out through the internet in much the same way that other types of fraud have been carried out through the mail, print media, and telemarketing. Approximately fourteen percent of consumer fraud is achieved through the internet or email, according to a 2004 Federal Trade Commission study.

“Phishing” is a type of computer fraud where con-artists develop websites that mimic legitimate websites in lay out, style, and content, but that seek to divest consumers of assets through their ploys. They do this by acquiring personal information (credit card numbers, usernames, passwords, etc) that “phishers” will take and use for criminal purposes, including identity theft.

The most common computer fraud using the internet is through online auctions, which accounted for ninety percent of all computer fraud in 2002. Computer fraud scam artists use “pump and dump” schemes, prize and vacation schemes, pyramid schemes, and offshore fraud scams to accumulate wealth at the expense of unwitting consumers.

There are several government agencies that have been established to protect consumers against computer fraud and other types of white collar crime. The Department of Justice, the Federal Trade Commission, the Securities and Exchange Commission, and several others provide advice to consumers that can help protect against fraud, provide company and business information to consumers, and even record and investigate cases of computer fraud and other types of fraud. These agencies and the Better Business Bureau have websites where you can research the legitimacy of a particular company, business, or website before making any decisions to allocate or invest money. Many of these agencies provide tips to minimize your risks of falling victim to computer fraud. Many also have a reporting agency where you can report internet and computer fraud. These reports should be filed in a timely manner, so that these agencies can efficiently track and bust internet and computer fraud operations.

If you have been the victim of internet or computer fraud, you may wish to speak with a qualified attorney to discover your legal rights and options in a case. If you have suffered losses because of internet or computer fraud you may be able to recover your damages. For more information on computer fraud, please contact us to confer with an attorney.

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Computer Fraud

Consumer Fraud Breaking News

"1,800 Reports of Fraud Related to the Hannaford Bros. Breach"

"Class Action Suit Settled for $23 Million"

"Dannon's Claims About Yogurt Are Unsubstantiated"

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