1. 1
Internet Fraud

2. •Learning Objectives
Identify the nature of internet fraud
Identify ways to prevent internet fraud.
List the tools used for internet fraud

3. “Internet fraud is a form of fraud which uses
any component of the Internet to accomplish
the intended fraudulent activity.”
- National White Collar Crime Center, USA

4. •Tools Used for Internet Fraud
• Email
• Chat rooms
• Websites
• Message Boards
• Portals
• Web Application

5. •Types of Internet Fraud
• Credit/Debit Card Fraud
• Business Deceit
• Recruitment Deceit
• Freight Forwarding Scam
• Advance Fee Fraud
• Spoofing/Phishing Scam
• Investment Rip-Off
• Identity Theft
• Non-Delivery of Goods/Service Fraud

6. •Credit & Debit Card Fraud
This involves the use of
credit/debit card to obtain
money or acquire properties
without appropriate
authorization.
Fraudsters obtain credit/debit
card numbers of victims from
unsecured web media.

7. •Business Deceit
In this case, fraudsters present themselves as genuine business
people and attempt to collect personal information such as
social security number and date of birth from respondents, in
order to use the data for purchasing goods which would most
likely be transferred or shipped out of the country.

8. •Recruitment Deceit
Generic public or private portals can be used for advertising fake
job openings with the intention to collect vital information from
applicants, and deploy them for purchasing goods.

9. •Freight Forwarding Scam
This is an internet fraud that involves the movement of
merchandise from one party to another without informing them
that the goods were bought with fake credit cards.

10. •Non-Delivery of Goods/Service Fraud
This refers to scam in which people are encouraged to pay for
goods and or service via a web portal, and thereafter nothing
would be delivered to the buyers.

11. •Phishing
• Phishing is a form of Internet fraud that aims to steal valuable
information such as credit cards, social security numbers, user
IDs and passwords
• Refers to the stealing of personal identifiers such as Pin
numbers, Credit card numbers and passwords via a spoof web
site or email.
11 Bits, Bytes & Chips

12. •Identity Theft
This entails the use of another’s personal information without
appropriate consent, for the purpose of fraudulent practices.

13. Internet Fraud
•PROTECTING YOURSELF
13

14. •Step 1. Keep your firewall turned on
• A firewall is a software program that helps screen out hackers, viruses, and
worms that try to reach your computer over the Internet.
• A firewall helps protect your computer from hackers who might try to
delete information, make your computer crash, or even steal personal
information such as passwords or credit card numbers.
• You should make sure your firewall is always turned on. if you have a small-
office network, it is important to protect every computer.
14 Bits, Bytes & Chips

15. •How Firewalls Work
• When someone on the Internet or on a network tries to connect to your
computer, the attempt is called an "unsolicited request." When your
computer gets an unsolicited request, Firewalls block the connection. If you
run a program such as an instant messaging program or a multiplayer
network game that needs to receive information from the Internet or a
network, the firewall asks if you want to block or unblock (allow) the
connection.
15 Bits, Bytes & Chips

16. •Step 2. Keep your operating system up-to-date
• High priority updates are critical to the security and reliability
of your computer. They offer the latest protection against
malicious online activities. Microsoft provides new updates, as
necessary, on the second Tuesday of the month.
• Automatic Updates is the easiest, most reliable way to help
protect your computer from the latest Internet threats by
delivering security updates right to your computer
automatically.
16 Bits, Bytes & Chips

17. •Step 3. Use updated antivirus software
• Viruses are usually malicious software. You need antivirus technology to help
prevent viruses, and you need to keep it regularly updated.
• Here are a few primary indicators that your computer might be infected:
• Your computer runs more slowly than normal
• Your computer stops responding or locks up often
• Your computer crashes and restarts every few minutes
• Your computer restarts on its own and then fails to run normally
• Applications on your computer don't work correctly
• Disks or disk drives are inaccessible
• You can't print correctly
• You see unusual error messages
• You see distorted menus and dialog boxes
17 Bits, Bytes & Chips

18. •Step 4. Use updated antispyware
technology
• Spyware is usually malicious software. You need antispyware technology to
help prevent spyware, and you need to keep it regularly updated.
• Spyware is a general term used to describe software that performs certain
behaviors such as advertising, collecting personal information, or changing
the configuration of your computer, generally without appropriately
obtaining your consent first.
18 Bits, Bytes & Chips

19. •Internet Safety Guidelines
• Recognize phishing scams and fake e-mails
• Phishing is a type of deception designed to steal your valuable personal
data, such as credit card numbers, passwords, account data, or other
information.
• Con artists might send millions of fraudulent e-mail messages that appear
to come from Web sites you trust, like your bank or credit card company,
and request that you provide personal information.
19 Bits, Bytes & Chips

20. •Internet Safety Guidelines
• How to handle suspicious e-mail
1. If you think you've received a phishing e-mail message, do not respond
to it.
2. Report suspicious e-mail to the faked or "spoofed" organization.
3. Contact the organization directly—not through the e-mail you
received—and ask for confirmation. Or call the organization's toll-free
number and speak to a customer service representative.
4. Don't click links in e-mail messages.
20 Bits, Bytes & Chips

21. •Internet Safety Guidelines
1. If you need to update your account information or change your password,
visit the Web site by using your personal bookmark or by typing the URL
directly into your browser.
2. Check the security certificate before you enter personal or financial
information into a Web site.
3. Links in phishing e-mail messages often take you to phony sites that
encourage you to transmit personal or financial information to con artists.
Avoid clicking a link in an e-mail message unless you are sure of the
destination. Even if the address bar displays the correct Web address, don't
risk being fooled. Con artists can display a fake URL in the address bar on
your browser. Type addresses directly into your browser or use your personal
bookmarks.
4. Make sure the site is secure before you type.
21 Bits, Bytes & Chips

22. •Anti-spam and anti-phishing
technologies
• Microsoft Phishing Filter
• Use e-mail software that filters spam
•
22 Bits, Bytes & Chips

23. •Watch for Key Phishing Words
• "Verify your account.“
• "If you don't respond within 48 hours, your account will be
closed.“
• "Dear Valued Customer.“
• "Click the link below to gain access to your account.“
• Slightly modified URLs
• www.micosoft.com
www.mircosoft.com
www.verify-microsoft.com
23 Bits, Bytes & Chips

24. •Protect your personal information
• Create strong passwords
• Make it lengthy
• Combine letters, numbers, and symbols
• Avoid your login name
• Test your password at
http://www.microsoft.com/athome/security/privacy/password_checker
.mspx
• Use online payment services
• Use a third-party payment service to pay for things online
24 Bits, Bytes & Chips

25. •Beyond the basics, how to protect
yourself and your data.
• ID theft
• Social engineering is a way for criminals to gain access to your
computer. The purpose of social engineering is usually to secretly
install spyware or other malicious software or to trick you into
handing over your passwords or other sensitive financial or personal
information.
• Use Strong Passwords
• Recognize Spam and Phishing
25 Bits, Bytes & Chips

26. •Using a public computer
• Don't save your logon information. Always log out of Web sites
by clicking "log out" on the site. It's not enough to simply close
the browser window or type in another address
• Don't leave the computer unattended with sensitive
information on the screen.
• Erase your tracks
• Here’s how
26 Bits, Bytes & Chips

27. •How to remove your presence.
• To disable the feature that stores passwords
Before you go to the Web, turn off the Internet Explorer feature that "remembers" your passwords.
1. In Internet Explorer, click Tools, and then click Internet Options.
2. Click the Content tab, and then click AutoComplete.
3. Click to clear both check boxes having to do with passwords.
To delete your temporary Internet files and your history
When you finish your use of a public computer, you should delete all the temporary files and your Internet
history.
1. In Internet Explorer, click Tools, and then click Internet Options.
2. On the General tab, under Temporary Internet files, click Delete Files, and then click Delete Cookies.
3. Under History, click Clear History.
27 Bits, Bytes & Chips

28. •5 safety tips for using a public computer
(continued)
• Watch for over-the-shoulder snoops.
• Don't enter sensitive information into a public computer.
These measures provide some protection against casual hackers
who use a public computer after you have.
• If you really want to be safe, avoid typing your credit card number or
any other financial or otherwise sensitive information into any public
computer.
28 Bits, Bytes & Chips

29. •Malware
• Software designed to infiltrate or damage a computer system without the
owner's informed consent
• It can hijack your browser, redirect your search attempts, serve up nasty
pop-up ads, track what web sites you visit
• Usually poorly-programmed and can cause a computer to become
unbearably slow and unstable
• Can reinstall themselves even after you think you have removed them
29 Bits, Bytes & Chips

30. •Let’s Review.
How to have a safe internet browsing experience
• Keep your operating system current with the most recent
updates.
• Use a Firewall
• Use an Anti-Virus program and keep it updated.
• Use an Anti-Spyware program and keep it updated.
• Use an Anti-Spam program and keep it updated.
30 Bits, Bytes & Chips

31. •Where do I get the tools I need?
• Many ISPs provide Anti-Virus with your subscription. BUT! It
must be downloaded and installed.
• You could use a free anti virus like AVGFree, but a paid license of
an anti virus like Norton or Quick Heal is recommended,
because, usually these include Anti-Spyware and Anti-Malware
tools also.
31 Bits, Bytes & Chips

32. •Where do I get the tools I need?
(continued)
• Many companies offer Anti-Phishing capabilities either as a part
of their email UI or as a part of their browsers.
• Firewalls are often a feature of Anti-virus programs but if not,
turn on the Windows Firewall built into XP and above editions.
• And finally, the most powerful protection available!
32 Bits, Bytes & Chips

33. •Where do I get the tools I need?
(continued)
• Common Sense.
• If the program is FREE, read the Licence Agreement of the software.
• Do not respond to bogus Emails
• Do not click on links in Emails to other sites
• Passwords, Passwords, Passwords
• Watch for encryption signals. Padlocks and Certificates.
33 Bits, Bytes & Chips

34. Thank You
34