"BidPay.Com's Fraud Detection System Uncovers International Online Auction Fraud Ring." Business Wire (September 21, 2000): 2 p.Notes: Available fulltext on Lexis/NexisAbstract: BidPay.com, one of the most prominent person-to-person online auction payment services, has uncovered a large Indonesian group hiding behind phony domain registrations. The groups is using stolen credit cards to target sellers offering their items for sale with online auction sites such as eBay, Yahoo, Amazon, MSN and a number of other online e-commerce sites.

Ebbinghouse, Carol. "Deliberate Misinformation on the Internet! Tell Me It Ain't So!" Searcher (May 1, 2000): p. 16.Notes: Available fulltext on Lexis/NexisAbstract: Why would anyone deliberately put misinformation on the Internet? After all, this is where mothers of sick children go to look for cures, where the jobless look for employment, where investors look for advice. The Internet is where people go for the truth! It is difficult to create a definitive list of the myriad types of misinformation on the Internet, because the numbers are constantly growing. Complaints to the SEC alone tripled in the first six months of 1999, and that is without counting the Federal Trade Commission, the National Fraud Information Center, the Better Business Bureau Online, or other complaint centers for Internet fraud and deceit. This article explores some of the types of misinformation, missing information, deception, and fraud that currently populate the Internet.

This bibliography is a representative selection of materials either owned or on order by the FBI Academy Library. Inclusion of an item does not represent an endorsement by the FBI of the material or its author.

Federal Bureau of Investigation. "Internet Fraud Complaint Center." [http://www.ifccfbi.gov]. Abstract: The Internet Fraud Complaint Center (IFCC) is a partnership between the FBI and the National White Collar Crime Center. Its mission is to address fraud committed over the Internet. For victims of Internet fraud, the IFCC provides a convenient and easy-to-use reporting mechanism that alerts authorities of a suspected criminal or civil violation. For law enforcement and regulatory agencies at all levels, the IFCC offers a central repository for complaints related to Internet fraud, works to quantify fraud patterns, and provides timely statistical data of current fraud trends.

Federal Trade Commission. "Law Enforcers Target Internet Auction Fraud." February 14, 2000. [http://www.ftc.gov/opa/2000/02/internetauctionfraud.htm]. Abstract: In a coordinated law enforcement initiative targeting con artists who prey on Internet auction users, the Federal Trade Commission, Department of Justice, US Postal Inspection Service, the National Association of Attorneys General and other federal, state and local law enforcers announced a three-pronged effort to stem the fraud faced by Internet auction-goers. Law enforcement authorities announced that they have taken more than 35 law enforcement actions already and have many more in the pipeline. Tips to the fraud, which involves non-delivery among other offenses, come from auction sites as well as consumers who have been conned.

Fisher, Daniel. "Cyber-Slueths: An Engine of Commerce, the Internet Has Also Become a Vast Bazaar for Ripoff Artists. InfoGlide Helps Track'em Down." Forbes (December 27, 1999): p. 266(2).Notes: Also available fulltext on InfoTracAbstract: It might have been a perfectly ordinary electronic auction on eBay, one of thousands of daily transactions between consenting adults. First somebody named "eastcoaster" put a Sharp Wizard electronic organizer up for sale. Then "abercrombie 35" bid $119. Next "indigo_girl" and "winner99" upped the ante. Finally "abercrombie 35" won a bid of $200, $81 more than his original offer. But InfoGlide, an Austin, Texas, software firm, looked behind the data to find more suspicious patterns. This article discusses how a conclusion was reached that three of the names probably belonged to the same person, who was using multiple identities to bid up the price of his goods.

Forbes.com. "FTC's Bite Out of Internet Fraud Lacks Teeth." March 27, 2000. [http://www.forbes.com/tool/html/00/Mar/0327/mu2.htm]. Abstract: In March, officials from the Federal Trade Commission (FTC) held a press conference to trumpet their scheme to contain international Internet fraud. A laudable goal considering nearly 1,600 suspect sites have already been identified, according to the FTC. However, the FTC is more likely to prove the limitations of national power on the global network than to stop any criminals.

Krebs, Brian. "SEC Conducts 'Pump-And-Dump' Net Stock-Fraud Sweep." Newsbytes (September 6, 2000).Notes: Available fulltext on Lexis/NexisAbstract: The Securities and Exchange Commission (SEC) took action against 33 companies and individuals accused of engaging in "pump-and-dump" microcap stock schemes that brought in illegal profits of more than $10 million. The SEC brought the actions after conducting its fourth nationwide Internet fraud sweep, in which it searched the Internet for misleading and illegal messages on web sites, electronic newsletters and Internet message boards touting more than 70 thinly traded microcap stocks.

Mendell, Ronald L. "Is the Internet Just a Web of Misinformation?" Security Management (June 1999): p. 130(2).Abstract: The Internet is fast becoming the font of all human knowledge from which anyone can imbibe an astonishing range of information. For business professionals with a thirst for knowledge about the credit worthiness of potential clients, vendors, or partners, this can be a heady elixir. But they must be mindful that this new river of data is not a protected reservoir; rather it is an open ocean into which estuaries great and small feed a muddy melange of fact, folly, and fraudulent information. People tend to believe what they see on the web. Fancy graphics, coupled with impressive figures and links to other sites, hook the public into the illusion of legitimacy. Warning signs are obvious to the trained eye, and teaching employees the art of web skepticism should be a part of every security manager's master plan.

Mollman, Steve. "Don't Get Fooled Again: Shysters. Scam Artists. Flimflammers. Con Men. Swindlers. Sharks. E-Commerce Is Booming. So Is Online Fraud, Which Is Sucking the Lifeblood Out of the Online Explosion. It's on the Rise Up 600 Percent. Don't Be a Victim. You're Smarter Than That." PC/Computing (December 1999): p. 80(2).Notes: Available fulltext on InfoTracAbstract: In 1999, just before Labor Day, customers of California ISP Value Net received an important e-mail message. Your account, the note said, is past due. To update it, please visit www.valuehelp.net. Clever customers noticed something amiss: the URL should have read www.value.net but at least one trusting soul visited the site and unwittingly gave away his personal information to a con artist. The result? A hefty unauthorized charge on his credit card.

National Consumers League. "National Consumers League Warns Consumers Millions are Lost to Internet Fraud: N.C.L.'s Internet Fraud Watch Releases Top Internet Frauds." February 16, 2000. [http://www.fraud.org/internet/99final.htm]. Abstract: Consumers lost over $3.2 million to Internet fraud last year in incident reports to the National Consumers League's Internet Fraud Watch. A 38 percent increase in Internet fraud complaints in 1999 coupled with an average consumer loss of as much as $580 indicate an urgent need for consumer education about shopping online.

National Fraud Information Center. "Internet Fraud Watch." [http://www.fraud.org/internet/intinfo.htm]. Abstract: The Internet Fraud Watch was launched in March 1996, enabling the National Consumers League's National Fraud Information Center to expand its services to help consumers distinguish between legitimate and fraudulent promotions in cyberspace and route reports of suspected fraud to the appropriate law enforcement agencies. The site provides tips, articles, bulletins and other information that can be used to avoid fraud, protect privacy, and navigate the Internet safely and enjoyably.

Neeley, DeQuendre. "Online Fraud Rises Again." Security Management 44, no. 5(May 2000): p. 38.Abstract: In its fourth annual report on online shopping security, the National Consumers League's Internet Fraud Watch cited online auctions as the top denizen of Internet fraud. Other types of fraud are increasing, such as general merchandise, Internet access services, computer equipment and software sales, and work at home plans.

Null, Christopher. "Web of Lies: Hoaxes, Jokes, Fakery, Fraud: Your Online Credibility Faces an Uphill Battle." PC/Computing (January 2000): p. 60(3).Notes: Available fulltext on InfoTracAbstract: The proliferation of web sites such as fake movie fan sites, sites that provide product reviews rating everything from cars to software and sites that use URLs that imitate genuine names are discussed.

Rosen, Cheryl. "Major E-Payment Initiatives Combat Online Fraud--Visa and Citigroup Roll Out Payment Infrastructures Designed to Meet Customer Demand." Information Week (July 24, 2000): p. 38(2).Notes: Available fulltext on InfoTracAbstract: Financial services giants Visa USA and Citigroup have launched new electronic payment initiatives designed to reduce online fraud and make Internet purchases more secure. Visa has been developing its new high capacity e-payment infrastructure along with partners Sun and Cisco for 18 months. The new DirectExchange system will be able to handle 10,000 messages per second and 100 billion transactions a year. New security features include the ability to accept free-form data messages, which could include biometric user IDs. Citigroup has signed a deal with AOL, the largest ISP and content provider, to let subscribers transfer funds, pay electronic merchants and make purchases with 'virtual credit cards.' Concern about online fraud is growing as market research shows the incidence of credit-card fraud is 12 times higher on the Internet than with in-person transactions. CyberCash is launching FraudPatrol, a new fraud-detection service.

Savage, Marcia. "Online Fraud: New Twist on Old Issue." Computer Reseller News (March 27, 2000): p. 28.Notes: Available fulltext on InfoTracAbstract: San Francisco online merchants are facing an old nemesis of the retail world: credit card fraud. While much attention is paid to the risks consumers face on the Internet, less is said about web merchants, who are feeling the sting of online credit card fraud. Unlike face-to-face transactions, in which the card-issuing bank foots the bill for fraudulent charges, online merchants are stuck with the charges when fraud occurs.

Schuyler, Nina. "Going...Going...Gotcha!" PC World (October 2000): p. 181-86.Notes: Also available fulltext on InfoTracAbstract: Online auction fraud has increased 100-fold over the past two years and is by far the most common web crime. The Federal government has begun investigating fraud but has limited resources, leading some victims to turn to vigilantism. Anonymity is attracting sophisticated con artists to the web; it's easy to use free e-mail accounts to set up fake identities. Online buyers should use credit cards and check the value of previous auctions. Some swindlers participate in their own auctions under a different user ID. Another scam is triangulation: a con artist buys merchandise from e-merchants using stolen identities and credit cards and resells the goods to unsuspecting bidders. Some buyers are swindlers as well, purchasing goods with bad checks and stolen credit cards or falsifying claims of undelivered merchandise. Auction sites recognize that fraud hurts business, but some sites are afraid that assuming responsibility will lead to law suits.

Securities and Exchange Commission. "Avoiding Internet Investment Scams: Tips for Investors." [http://www.sec.gov/consumer/cyberfr.htm]. Abstract: The Internet serves as an excellent tool for investors, allowing them to easily and inexpensively research investment opportunities. But the Internet is also an excellent tool for fraudsters. Think twice before investing money in any opportunity learned about through the Internet. This alert explains how to spot different types of Internet fraud, what the Securities and Exchange Commission is doing to fight Internet investment scams, and how to use the Internet to invest wisely.

Seminerio, Maria. "Cutting Out E-Fraud: As Holiday Shopping Escalates, So Does Online Fraud; Small E-Com Companies Are Most Vulnerable." PC Week (December 13, 1999): p. 99(4).Notes: Available fulltext on InfoTracAbstract: Increased online fraud is expected to accompany the surge in holiday buying on e-commerce sites, and many companies are accelerating their online commerce moves without preparing for the threat of crime. Smaller businesses, especially those selling software or big-ticket items, are most vulnerable. A study by Meridien Research indicates that fraud will cost online merchants $1.5 billion a year and as much as $15 billion by 2003; on some software sites as many as 30 percent of purchases are fraudulent. Credit card companies place more pressure on e-commerce sites, which involve 'card not present' transactions, than traditional retail stores due to the higher fraud rate. Large companies such as Dell Computer can absorb fraud more easily than small companies and can win more concessions from banks and credit card companies. Some merchants develop fraud-detection tools in-house; others can take simple steps such as training sales staff to note suspicious transactions.

Seper, Jerry. "Fraud.com." Insight (June 26, 2000): p. 28.Notes: Also available fulltext on InfoTracAbstract: This article discusses the newly established FBI Internet Fraud Complaint Center in Morgantown, West Virginia, the Justice Department's Internet Fraud Initiative, as well as its National Advocacy Center at the FBI Academy, Quantico, Virginia, where hundreds of prosecutors and FBI agents, as well as foreign investigators, are being trained to combat Internet fraud.

Snyder, James M. "Online Auction Fraud: Are the Auction Houses Doing All They Should or Could to Stop Online Fraud?" Federal Communications Law Journal 52, no. 2(March 2000): p. 453(22).Notes: Available fulltext on InfoTracAbstract: In April 1998, the Federal Telecommunications Commission (FTC) released a consumer alert pertaining to the increasing problem of online auction fraud. As the number of online auction participants increased, online auction fraud was becoming more prevalent. The FTC requested comments regarding methods that would be appropriate for curbing the increase in consumer deception. Many in the online auction industry proposed voluntary self-regulation. This article exposes the inadequacy of industry self-regulation by analogizing online auction abuse with the misuse and near downfall of the 900-number industry. Further, the article proposes that only a regime of strict industry guidelines that the FTC initiates will halt online industry abuse.

The Web Developer's Journal. "Reducing Online Credit Card Fraud." April 4, 2000. [http://www.webdevelopersjournal.com/articles/card_fraud.html]. Abstract: Credit card company figures show that 90 percent of consumers are reimbursed when their cards are used fraudulently, while 75 percent of online retailers have to eat the cost when they're the victims of credit card fraud. There is currently no way to avoid this ludicrously high risk, though it can be reduced.

US Department of Justice. "Internet Fraud." [http://www.usdoj.gov/criminal/fraud/Internet.htm]. Abstract: Part of the Department of Justice Home Page that explains what Internet fraud is, describes the major types, cites cases, explains what the Department of Justice is doing about it, provides tips on how to deal with it, and provides a list government and private organizations web sites involved in various aspects of Internet fraud.

Compiled by Jean Caddy, 10/00