How do fraudsters work?
Most frauds against individuals and many businesses come in two forms:
1. Lying, deceiving in order to get someone to part with money or goods
For example, a person orders and pays for goods or a service – it turns out to be an inferior or different product; it may not even exist. A particularly common type is what is called an “Advance Fee Fraud” where payment is requested up front before the alleged product is sent. Company shares are often offered in this way where the fraudsters “cold call” prospective victims with enticing share offers often accompanied with glossy, professional brochures. (Often called “Boiler Room” frauds.)
2. Acquiring personal and financial data which is used to defraud the victim and/or used to defraud others. Getting this information is done in two main ways – either by requesting the information over the telephone or internet so the victim is tricked into revealing it to the fraudster (known as “phishing”) or by technically attacking the victim’s computer link so data can be directly acquired or diverted (the latter is called “pharming”). Once certain information has been acquired it can be used to obtain goods via credit card details, for example or used to provide identity information in what most people would term “identity theft”.
So what are the common frauds being used?
Phishing / Pharming Obtaining personal information over the internet, telephone or any means of communication which is then used to commit frauds. Personal information is also sometimes used to provide false identities usually so further frauds can be committed.
Shares sales
Often called “boiler room frauds”. Usually takes form of a “cold call” to an individual or business offering company shares though recent variations include shares in wine stocks for example. The callers are very often abroad. The shares they purport to sell are either worthless or non-existent; this is not discovered until the purchaser has parted with often large sums of money.
Advance Fees
These frauds are designed to obtain money from people or companies by paying for a service in the expectation of receiving a much larger sum back. There are a number of variations which often include the offender(s) appearing to befriend the intended victim to get their confidence/sympathy and then requested loans or assistance. Dating sites are commonly used by fraudsters for this purpose.
Counterfeit Goods
There are a number of websites on the internet who offer for sale apparently desirable goods such as current electronic devices, designer clothing etc. at discounted prices. Very often they are counterfeit and/or inferior quality and involve misusing official logos and images to appear genuine and therefore enticing to prospective purchasers. If the purchaser receives the goods they are very often found to be inferior and there is little or no comeback on the vendor.
