Counterfeit postal money orders
According to the FBI, on April 26th 2005 Tom Zeller Jr. wrote an article in The New York Times regarding a surge in the quantity and quality of the forging of U.S. postal money orders, and its use to commit online fraud. Small Internet retailers, classified advertisers and individuals contacted by defrauders online are victims of this fraudulent activity.
In the United States of America, the penalty for making or using counterfeit postal money orders is up to ten years in jail and/or a $25,000 fine.
Online automotive fraud
A fraudster posts a nonexistent vehicle for sale to a website, typically a luxury or sports car, advertised for well below its market value. The details of the vehicle, including photos and description, are typically lifted from sites such as craigslist, autotrader, cars.com or Autoscout24. An interested buyer, hopeful for a bargain, emails the fraudster, who responds saying the car is still available but is located overseas. Or, the scammer will say that he is out of the country but the car is with a shipping company. The scam artist then instructs the victim to send a deposit or full payment via wire transfer to initiate the "shipping" process. To make the transaction seem more legitimate, the fraudster will ask the buyer to send money to a fake agent of a third party that offers purchase protection. The unwitting victims wire the funds, and subsequently discover they have been scammed.
In another type of fraud, a fraudster contacts someone who has posted a vehicle for sale online, asking for the vehicle identification number (VIN) in order to check the accident record of the vehicle. However, the crook actually uses the VIN to make fake documentation for a stolen car, in order to sell it.
Vehicles can also be used as part of a counterfeit cashier's check scam.
Car export companies verification
Whilst the vast majority of websites in Japan are of genuine business companies, but it is also a fact that online scams and fraud are alive, well and very big business in Japan. It is very important for foreign importers to verify each company and do not send money until full satisfaction. Verification of each Japanese companies under "Japan Company Trust Organization" can also be helpful.
Counterfeit cashier's check scam
Landlords placing advertisements on Craigslist or rent.com receive an e-mail response from a prospective renter from a foreign country, typically a student fresh out of secondary education (high school in the U.S.). The first inquiry seems legitimate. The second usually comes with request for more information and an attachment from a fake company set up by the scam artist indicating that the "student" has won a part-time scholarship from the company. (The fraudster will often set up a fake website for the company, in order to make the attachment seem legitimate.) The scam comes with the third e-mail: a request for the victim's name and address so that the "company" can send a cashier's check to cover the rent and the "student's" travel costs.
The victim is instructed to cash the check and wire the difference back to the student so that they can travel to the destination country. In the United States, banks consider cashier's checks to be "guaranteed funds" and will typically cash them instantly. However, unlike a certified check, the bank that cashes a cashier's check can still take back the money from the depositor if the check is counterfeit or "bounces". Because of the lag between the cashing and clearing of the check, the victim does not realize that they have been had until their account is debited for the amount they wired to the fraudster, plus any fees for the bounced check.
In this variation, a fraudster feigns interest in a vehicle for sale on the Internet. The "buyer" explains that he represents a client who is interested in the car, but due to an earlier sale that fell through, he has a cashier's check made out for thousands more than the asking price. The scammer requests that the victim cash the check and refund the balance via wire transfer. If the seller agrees to the transaction, the fraudstser sends the counterfeit cashier's check via express courier (typically from Nigeria). The victim takes the check to their bank, which makes the funds available immediately. Thinking the bank has cleared the check, the seller follows through on the transaction by wiring the balance to the buyer. Days later, the check bounces, and the victim is responsible for the amount they wired to the fraudster, plus any fees associated with the bounced check.
Cash the check system
Defrauders negotiate large purchases with the victim (e.g. ordering $50,000 to $200,000 worth of goods) agreeing to an advance payment via bank wire transfer. After ordering, the fraudster claims that paying via wire transfer is impractical, and instead sends a counterfeit check drawn on the account of a real, uninvolved organization as an alternate payment. After the check clears, the victim company ships the goods. When the uninvolved organization notices the fraudulent transaction against their account, they request a chargeback, resulting in the victim losing both the money and the goods.
In some cases, thieves learn the address of a merchant's bank, and send counterfeit checks directly to the bank. They then claim a direct deposit was made after the check is deposited by bank staff, hoping the victim will only notice the apparently available funds, and not the fact that it was a check deposit that the bank has not yet fully cleared.
In other cases, defrauders negotiate smaller transactions (e.g. ordering $2,000 to $10,000 worth of goods) with fraudulent checks written for more than the purchase amount, and instruct the merchant to refund "excess" amounts via Western Union money transfer to an account in another country.
Re-shipping scams trick individuals or small businesses into re-shipping goods to countries with weak legal systems. The goods are generally paid for with stolen or fake credit cards.
In African re-shipping scams, fraudsters recruit victims from Western countries via chat rooms and dating websites, developing long-distance relationships with their victims to obtain personal details. After the victim accepts a marriage proposal from the scammer, items are bought online using credit card information stolen from other people and shipped to victims without their knowledge. The fraudster then claims the goods were sent to the wrong address, and asks the victim to apply pre-printed labels to the packages and re-ship them to fraudsters' real address. Once the victim re-ships the goods, the fraudster ceases all communication with the victim. Victims often discover that the shipping account for the pre-printed labels is in their name when the freight company bills them for the shipping costs.
To stop ongoing online frauds, crimes, and looting people through Destructive ways like HACKING, PHISHING, ANTI-PAY etc.
The use of Internet services or software with Internet access to defraud victims or to otherwise take advantage of them, for example by stealing personal information, which can even lead to identity theft. A very common form of Internet fraud is the distribution of rogue security software. Internet services can be used to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme.
Internet fraud can occur in chat rooms, email, message boards, or on websites.