Fraud and the Internet
Internet Fraud Complaint Center a collaboration of the FBI and the National White Collar Crime Center
FILL OUT AN ONLINE COMPLAINT FORM
at the Internet Fraud Complaint Center
Should you pay $5,000 to participate in an internet mall? Before you shell out your hard-earned cash, read "The Truth about Internet Malls by Paul Marshall.
ID Theft Resource Center has a whole list of Internet scams and cons.
U.S. News' Citizens Toolbox for Avoiding Internet Fraud
Department of Justice exposes Internet Fraud.
The National Cybercrime Training Partnership
Internet Fraud Council
The International Association of Computer Investigative Specialists "IACIS is an international volunteer non-profit corporation composed of law enforcement professionals dedicated to education in the field of forensic computer science. IACIS members represent Federal, State, Local and International Law Enforcement professionals. Regular IACIS members have been trained in the forensic science of seizing and processing computer systems."
Financial Crimes Division of the Secret Service investigates crimes associated with financial institutions. Today, this jurisdiction includes bank fraud, access device fraud involving credit and debit cards, telecommunications and computer crimes, fraudulent identification, fraudulent government and commercial securities, and electronic funds transfer fraud. This site covers:
Medicare Fraud
Is a Charity You're Thinking of Donating to on the up and up?
American Institute of Philanthropy
GuideStar: The Donor's Guide to the Charitable Universe
National Charities Information Bureau Get a FREE introductory copy of quarterly publication: Wise Giving Guide
BBB Philanthropic Advisory Board. Requires that "A reasonable percentage, at least 50%, of total income from all sources shall be applied to programs and activities directly related to the purposes for which the organization exists."... and "A reasonable percentage, at least 50%, of public contributions shall be applied to programs and activities described in solicitations, in accordance with donor expectations."
AARP's: Charities, Give Well But Wisely
Is That Charity Really a Good Cause?
Secret Service's Public Awareness Advisory Regarding "4-1-9" or "Advance Fee Fraud" Schemes"
"4-1-9 Schemes frequently use the following tactics:
- An individual or company receives a letter or fax from an alleged "official" representing a foreign government or agency;
- An offer is made to transfer millions of dollars in "over invoiced contract" funds into your personal bank account;
- You are encouraged to travel overseas to complete the transaction;
- You are requested to provide blank company letterhead forms, banking account information, telephone/fax numbers;
- You receive numerous documents with official looking stamps, seals and logo testifying to the authenticity of the proposal;
- Eventually you must provide up-front or advance fees for various taxes, attorney fees, transaction fees or bribes;
- Other forms of 4-1-9 schemes include: c.o.d. of goods or services, real estate ventures, purchases of crude oil at reduced prices, beneficiary of a will, recipient of an award and paper currency conversion.
For more information, and information on the "Nigerian 4-1-9- Scheme" go here.
"If you have already lost funds in pursuit of the above described scheme, please contact the U.S. Secret Service in Washington, D.C. at 202-406-5850 or by e-mail."
Counterfeit Money
Send your friends a "counterfeit" $100 Bill
Know Your Money
The U.S. Treasury Department's Primer on recognizing counterfeit paper money and coins... and what to do about it when you spot a phony bill.
What to Do if You Suspect a Note is Counterfeit including A Downloadable Counterfeit Note Report
Online Auction Fraud
WARNING: The Truth about Ebay Auction
ebay allows FRAUD going back 4 years!
Securities Frauds
Top Ten Lines from Fraudulent Investor Promoters
Scams Involving U.S. Treasury Securities The Bureau of the Public Debt and the rest of the United States Department of the Treasury (collectively, "we" or "us") are aware of a number of fraudulent schemes (we like to call them "scams") that involve what are claimed to be securities issued or backed by us or any other part of the United States Government. These scams have been directed at banks, charities, companies, and even individuals, by individuals or organizations seeking payment on the fraudulent securities
How to protect yourself from treasury scams
Bogus Sight Draft Fraud
Examples of Known Phony Securities
Historical Bond Frauds
A Militia Watchdog Bulletin: Old Wine, New Bottles: Paper Terrorism, Paper Scams and Paper "Redemption"
Bogus "Treasury" Mailings "many businesses have been mailing solicitations that are deliberately crafted to look like Treasury mailings. A typical mailing (94K JPG file, uploaded 1/29/98) will have a phrase such as "Buy and Hold U.S. Savings Bonds" printed on the front of a brown-stock envelope along with an advisory that mail tampering is illegal. The stuffer, partly visible through the front window, will appear to be an U.S. Treasury check by virtue of the phrase such as "to the order of [addressee]" and a graphic such as the Statue of Liberty (or an imitation) or a bald eagle."
Financial Crimes Enforcement Network is to support law enforcement investigative efforts and foster interagency and global cooperation against domestic and international financial crimes; and to provide U.S. policy makers with strategic analyses of domestic and worldwide money-laundering developments, trends and patterns.
Federal Trade Commission
Securities and Exchange Commission
North American Securities Administrators Association
National Association of Securities Dealers
Chief United States Postal Inspector
The Truth Behind Those FREE and Low Cost Land Ads
Warning to Would Be "Homesteaders" At one time you could get free and low cost land from the U.S. Government. No more. Beware of any ads purporting to offer you information on such. They are very likely scams. Read the Bureau of Land Management's FAQ's for further information. However, the idea of buying a low cost piece of land and using it as collateral for building your own home isn't a bad idea!
Chain Letters
What the "Make a Wish Foundation" Says About Chain Letters Circulating on the Internet
Internet Chain Letters
Chain Letters Anonymous Support groups for those who are trying to quit cold turnkey.
The Truth About Chain Letters and Why They CAN'T Work! Plus DOZENS of examples of actual chain letters.
Chain Letters Are Illegal. Chain Letters Are a Waste of Time. Lots of reasons why. Lots of links.
Long Distance Phone Frauds
Beware of calling unknown numbers in the 809 area code because you'll be charged a horrendous amount of money for them.
The Truth About Chain Letters and the Postal Code
U.S. Postal Inspection regarding Chain Letters "Do not be fooled if the chain letter is used to sell inexpensive reports on credit, mail order sales, mailing lists, or other topics. The primary purpose is to take your money, not to sell information. "Selling" a product does not ensure legality. Be doubly suspicious if there's a claim that the U.S. Postal Service or U.S. Postal Inspection Service has declared the letter legal. This is said only to mislead you. Neither the Postal Service nor Postal Inspectors give prior approval to any chain letter."
Ponzi Schemes
The Ponzi Scheme Struck Again A Case of Classic Fraud from the FBI's Files.
Diploma Mill Frauds
Want an “easy” college degree?
Beware of illegal diploma mills
Diploma mills (or degree mills) are substandard or fraudulent “colleges” that offer potential students degrees with little or no serious work. "Some are simple frauds: a mailbox to which people send money in exchange for paper that purports to be a college degree. Others require some nominal work from the student but do not require college-level course work that is normally required for a degree.
Why are degree mills a problem?
"'Mail drop' degree mills are simply fraud, a way for unscrupulous hucksters to make money while providing no service. More substantive degree mills devalue college degrees by making them available without college-level work. This makes all degrees suspect and confuses employers and professional licensing boards that need to know whether a person has an appropriate educational background...." CLICK HERE for the rest of the story.
Beware of Those HUD Third-party Tracer Schemes
What HUD Has To Say About Tracers "....The tracing scheme promoted by many hucksters sounds good in theory. However, it is extremely difficult to make any money as a tracer for the reasons below:
- In general, tracers are competing with thousands of other tracers with the same HUD lists.
- Data on the HUD lists are only as current as of the date the FHA insurance was terminated. Since the information is outdated, time consuming skip tracing (searching) is required for each name with little guarantee of success.
- With the increase in internet users, the general public is becoming more capable of finding out information for themselves.
- When someone is told that they are due money from an undisclosed source, their first guess is the Federal Goverment and from there they can usually figure it out. HUD/FHA gets numerous email inquiries from former HUD-insured mortgagors who have been contacted by tracers and end up getting their full refund without the tracers.
- HUD will only pay a refund to the recipient and not to a tracer. This means that the tracer has to attempt to collect the money from a recipient AFTER he/she has received the money from HUD...."
Tax Fraud Schemes
"There is no such thing as a free lunch!" The hard sell is often difficult to pass up - but seek expert advice before you subscribe to any scheme that offers instant wealth or exemption from your obligation as a United States Citizen to pay taxes." IRS Tax Fraud Alert
IRS Warning: "Establishing a foreign or domestic trust for the purpose of hiding income and assets from taxation is illegal. Abusive Trust Schemes typically involve the creation of one or more trusts into which the taxpayer transfers his or her personal and/or business assets and to which the taxpayer assigns his or her income. The taxpayer, the promoter, or someone who will allow the taxpayer in reality to control the activities of the trust is then assigned as the trustee."
Internal Revenue Service Criminal Investigation Units Tax Fraud Alerts These include:
Abusive Trust Scheme ".... In the last few years the Internal Revenue Service Criminal Investigation (CI) has detected a proliferation of abusive trust tax evasion schemes. Currently, there are two prevalent fraudulent schemes being promoted: the 'domestic scheme' and the 'foreign scheme.' The domestic scheme involves a series of trusts that are formed in the U.S., while the foreign trust scheme is formed offshore and outside the jurisdiction of the U.S. The trusts involved in the schemes, either foreign or domestic, are vertically layered with each trust distributing income to the next layer. The result of this layered distribution of income is to fraudulently reduce taxable income to nominal amounts. Although these schemes give the appearance of the separation of responsibility and control from the benefits of ownership, these schemes are in fact controlled and directed by the taxpayer.
These schemes are often promoted by a network of promoters and sub-promoters that may charge $5,000 to $70,000 for their packages. This fee enables taxpayers to have trust documents prepared, to utilize foreign and domestic trustees as offered by promoters, and to use foreign bank accounts and corporations. In some instances, tax return preparer services are also made available...."
Includes a continually updated section on Criminal Convictions
Other IRS Warnings
Social Security Refund Hoaxes "The Internal Revenue Service warned taxpayers not to fall victim to a scam offering them refunds of the Social Security taxes they have paid during their lifetimes. The victim pays a "paperwork" fee of $100, plus a percentage of any refund received, to file a refund claim with the IRS.
" 'This is nothing more than a hoax designed to fleece the victims for the upfront fee," said Ted Brown, IRS Assistant Commissioner for Criminal Investigation. "The law does not allow such a refund of Social Security taxes paid, and the IRS will contact taxpayers filing these claims.'
"The IRS processing centers are alert to this hoax and have been stopping the false claims. The IRS has already blocked nearly 1,100 refund claims totaling nearly $95 million...."
African- Americans warned not to be misled by anyone offering to help them file for tax credits or refunds related to reparations for slavery "...It's despicable that some are stealing from innocent people by charging fees to prepare what they know to be baseless claims."
See also The Hoax the Targets Elderly Afro-Americans |
ZDNet's Articles on Scams:
Stop Online Stock Scams
Single Out Charity Scam Artists
Avoid Fraud at Online Auctions
Who You Gonna Call About Online Fraud
There's a Sucker Born Every Minute: Online Investment Scams
Cracking the Mega$Nets Chain Letter Scam
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