How many people are scammed into sending money or giving personal information each year?
Answer: Millions!!
Types of Internet Fraud
- Internet auction fraud—involves the misrepresentation of a product advertised for sale on an Internet auction site, or non-delivery of merchandise.
- Credit card fraud—the unauthorized use of credit/debit card, or card number, scammers fraudulently obtain money or property.
- Investment fraud—an offer using false claims to solicit investments or loans, or providing purchase, use, or trade of forged or counterfeit securities.
- Nigerian letter or “419” fraud—named for the violation of Section 419 of the Nigerian Criminal Code, it combines the threat of impersonation fraud with a variation of an advance fee scheme in which a letter, e-mail, or fax is received by a victim.
Tips for Avoiding Internet Fraud
- Know your seller – If you don’t know who you are buying from online, do some research.
- Protect your personal information – Don’t provide it in response to an e-mail, a pop-up, or website you’ve linked to from an e-mail or web page.
For more information, click here.
Teaching Suggestions
- Bring to class Internet-related problems and examples of individuals or families. Suggest ways in which these problems might be solved.
- Compile a list of places and organizations where a person can call to report Internet fraud.
Discussion Questions
- While the Internet makes everyday tasks faster and more convenient, like stopping, banking, and communicating, why it’s important to be safe, secure, and responsible online.
- What are some basic precautions we can take to protect our computer and personal data from theft, misuse, and destruction?
Melissa Hart
Focus on Personal Finance, 7e 