Internet Scams, Internet Scams, Fraud, and Fraud, and HoaxesHoaxes

The History of Fraud in the US The History of Fraud in the US

Fraudulent land dealsFraudulent land deals Snake oil and patent medicinesSnake oil and patent medicines General Motors and street carsGeneral Motors and street cars Savings and loan crisis Savings and loan crisis EnronEnron Bernie MadoffBernie Madoff

The Two-Pronged AttackThe Two-Pronged Attack

Advance Fee FraudAdvance Fee Fraud Victims are persuaded to Victims are persuaded to

advance small sums of advance small sums of money in the hopes of money in the hopes of receiving a huge pay-off. receiving a huge pay-off. Scammers may demand Scammers may demand a processing fee or may a processing fee or may offer you a large offer you a large commission for cashing commission for cashing fraudulent checks fraudulent checks

Identity TheftIdentity Theft Using your personal Using your personal

information such as information such as name, birth date, social name, birth date, social security number, etc security number, etc criminals can obtain criminals can obtain credit cards in your name credit cards in your name or use your name to write or use your name to write bad checksbad checks

Top Ten ScamsTop Ten Scams

1.1. Fake Lottery Fake Lottery 2.2. Phishing Phishing 3.3. Phony Job OffersPhony Job Offers4.4. Negative Option Marketing Negative Option Marketing 5.5. Nigerian 419Nigerian 4196.6. Pump and Dump StocksPump and Dump Stocks7.7. Bogus Fuel Saving DevicesBogus Fuel Saving Devices8.8. Grandparent ScamGrandparent Scam9.9. Dating ScamsDating Scams10.10. Craig’s List Scams Craig’s List Scams

Fake LotteryFake Lottery

Fake LotteryFake Lottery

The Scam: You receive an e-mail saying The Scam: You receive an e-mail saying you have won a foreign lottery or you have won a foreign lottery or sweepstakes. Scammers are usually after sweepstakes. Scammers are usually after your bank account information to rip you your bank account information to rip you off. Secondarily, they want information off. Secondarily, they want information about you to steal your identity.about you to steal your identity.

The Facts: You can’t win a lottery or The Facts: You can’t win a lottery or sweepstakes that you didn’t enter!sweepstakes that you didn’t enter!

PhishingPhishing

The Scam: You receive and e-mail from your The Scam: You receive and e-mail from your bank, an auction site, or your credit card bank, an auction site, or your credit card company asking you to “update your company asking you to “update your information.”information.”

The Facts: Legitimate businesses do not The Facts: Legitimate businesses do not operate this way. Never give out your name, operate this way. Never give out your name, social security number, phone number, or bank social security number, phone number, or bank account information online unless you are sure it account information online unless you are sure it is a secure website, always get third party is a secure website, always get third party verification.verification.

The Phony Job OfferThe Phony Job Offer

The Scam: You receive an e-mail stating “We The Scam: You receive an e-mail stating “We have reviewed your resume and want to hire you have reviewed your resume and want to hire you right away!”right away!”

The Facts: Legitimate companies will want to The Facts: Legitimate companies will want to interview you before making a job offer! There interview you before making a job offer! There are many variants of this scam, but the most are many variants of this scam, but the most common involves you accepting packages to common involves you accepting packages to ship overseas. Weeks later you will receive a ship overseas. Weeks later you will receive a bill for the merchandise or you will be helping bill for the merchandise or you will be helping criminals use stolen credit cards to buy criminals use stolen credit cards to buy expensive items. Either way no commission will expensive items. Either way no commission will be forthcoming. be forthcoming.

Negative Option MarketingNegative Option Marketing

The Scam: You order a bottle of diet pills from a The Scam: You order a bottle of diet pills from a website. It’s a great deal, its free, you just pay website. It’s a great deal, its free, you just pay the shipping. A month later you receive another the shipping. A month later you receive another bottle of pills and your credit card statement bottle of pills and your credit card statement shows a $50 charge. shows a $50 charge.

The Facts: This is what is known as negative The Facts: This is what is known as negative option marketing. On the web page you must option marketing. On the web page you must “opt out” or unselect the default package when “opt out” or unselect the default package when purchasing your item. Be careful and read the purchasing your item. Be careful and read the fine print. fine print.

The Nigerian 419The Nigerian 419

The Scam: You receive an e-mail from The Scam: You receive an e-mail from government official in Nigeria. The details will government official in Nigeria. The details will vary, but this person is in possession of millions vary, but this person is in possession of millions from over-invoiced oil contacts or unclaimed from over-invoiced oil contacts or unclaimed money from some deceased person. Help money from some deceased person. Help him/her transfer the money to the US and keep him/her transfer the money to the US and keep a 10% commission.a 10% commission.

The Facts: There is no money! The goals here The Facts: There is no money! The goals here is to get your bank account information and/or is to get your bank account information and/or small sums of money supposedly to pay for small sums of money supposedly to pay for charges related to transferring the funds. charges related to transferring the funds.

The Pump and DumpThe Pump and Dump

The Scam: You receive an e-mail about a The Scam: You receive an e-mail about a particular, little-known stock that is going particular, little-known stock that is going to soon soar in value but you must act to soon soar in value but you must act now!now!

The Facts: Brokers are trying to artificially The Facts: Brokers are trying to artificially increase the price of the stock in order to increase the price of the stock in order to cash in. Stay away from stocks that are cash in. Stay away from stocks that are not traded on a well-known exchange like not traded on a well-known exchange like the NASDAQ or NYSE.the NASDAQ or NYSE.

Bogus Fuel Saving DevicesBogus Fuel Saving Devices

The Scam: You seeThe Scam: You seean advertisement an advertisement for a fuel saving for a fuel saving device that claimsdevice that claimsto increase gas to increase gas mileage by 30% mileage by 30% using special additives, magnets, or inserting using special additives, magnets, or inserting something into your car’s fuel line.something into your car’s fuel line.

The Fact: According to the Federal Trade The Fact: According to the Federal Trade Commission there is no scientific evidence that Commission there is no scientific evidence that any “fuel saving device” actually increases gas any “fuel saving device” actually increases gas mileage mileage

The Grandparent Scam The Grandparent Scam

The Scam: Although there are no reports of this The Scam: Although there are no reports of this scam being used on the internet this con is scam being used on the internet this con is worth mentioning. You receive a phone call worth mentioning. You receive a phone call from “your favorite Grandson,” a conman posing from “your favorite Grandson,” a conman posing as your Grandson claiming to be in trouble and as your Grandson claiming to be in trouble and needing money wired to him right away.needing money wired to him right away.

The Facts: Grandparents or the elderly are The Facts: Grandparents or the elderly are targeted as they tend to be less familiar with the targeted as they tend to be less familiar with the voice characteristics of their grand children. voice characteristics of their grand children.

Dating ScamsDating Scams

The Scam: You enter into a relationship with The Scam: You enter into a relationship with someone that you meet online on a dating site. someone that you meet online on a dating site. They seem like a perfect match until… They seem like a perfect match until…

The Facts: Most scammers will claim to be an The Facts: Most scammers will claim to be an American living in a foreign country who need American living in a foreign country who need money to get home or to get medical treatment. money to get home or to get medical treatment. Asking for a payment via Western Union, a Asking for a payment via Western Union, a direct wire transfer, or cash is a dead giveaway direct wire transfer, or cash is a dead giveaway that this person is only interested in one thing: that this person is only interested in one thing: your money!your money!

Fake Photos Used By Dating Fake Photos Used By Dating ScammersScammers

Craig list ScamsCraig list Scams

The Scam: You advertise your item for sale on The Scam: You advertise your item for sale on craigslist.org. A buyer contacts you and offers craigslist.org. A buyer contacts you and offers to send you a check or money order for more to send you a check or money order for more than you are asking for the item. Just refund the than you are asking for the item. Just refund the difference to them and keep a commission for difference to them and keep a commission for yourself. They will usually have some yourself. They will usually have some convincing story about why they have the check convincing story about why they have the check or money order, such as a previous purchase or money order, such as a previous purchase that fell through.that fell through.

The Facts: The check or money order will The Facts: The check or money order will bounce and your bank will hold you responsible!bounce and your bank will hold you responsible!

Craig’s List Scams Cont.Craig’s List Scams Cont.

The Scam: You see an apartment advertised on The Scam: You see an apartment advertised on craigslist.org. You contact the seller to say that craigslist.org. You contact the seller to say that you are interested. He says he has several you are interested. He says he has several parties looking at it but will hold the apartment parties looking at it but will hold the apartment for you if you put down a small deposit sent to for you if you put down a small deposit sent to him either through PayPal, EFT, or Western him either through PayPal, EFT, or Western Union. You then make arrangements to look Union. You then make arrangements to look over the apartment.over the apartment.

The Facts: Surprise! The unit is occupied and The Facts: Surprise! The unit is occupied and has been for a long time. All the scammer has been for a long time. All the scammer needed was a digital photo and description to list needed was a digital photo and description to list the apartment that he didn’t even own!the apartment that he didn’t even own!

Other ThreatsOther Threats

Viruses Viruses TrojansTrojans SpywareSpyware AdwareAdware MalwareMalware

Vishing Vishing PharmingPharming Cyber SquattingCyber Squatting DialersDialers SpamSpam

How to Spot Internet ScamsHow to Spot Internet Scams

Promise of money, jobs, or prizesPromise of money, jobs, or prizes Ask for donations, processing fees, or Ask for donations, processing fees, or

upfront paymentsupfront payments Proposal of lucrative business dealsProposal of lucrative business deals Ask you to provide sensitive personal Ask you to provide sensitive personal

informationinformation Ask you to follow a link in a website or e-Ask you to follow a link in a website or e-

mail message to log in to your accountmail message to log in to your account

Top Ten HoaxesTop Ten Hoaxes

1.1. Dioxins in Plastic Containers Dioxins in Plastic Containers 2.2. Cell Phones Pop PopcornCell Phones Pop Popcorn3.3. Charleton Heston’s Gun CollectionCharleton Heston’s Gun Collection4.4. Deodorant Gives You Breast CancerDeodorant Gives You Breast Cancer5.5. Human Parts FactoriesHuman Parts Factories6.6. Bonsai KittensBonsai Kittens7.7. UPS UniformsUPS Uniforms8.8. Burundanga on Business CardsBurundanga on Business Cards9.9. $250 Cookie Recipe$250 Cookie Recipe10.10. E-mail HoaxesE-mail Hoaxes

Dioxins in Plastic ContainersDioxins in Plastic Containers

The Hoax: In early 2002 an e-mail was The Hoax: In early 2002 an e-mail was circulated that stated that microwaving circulated that stated that microwaving plastic containers releases a cancer plastic containers releases a cancer causing substances known as Dioxins. causing substances known as Dioxins. Variants of theVariants of thee-mail also e-mail also mentioned mentioned freezing plasticfreezing plasticwater bottles. water bottles.

Dioxins in Plastic ContainersDioxins in Plastic Containers

The Facts: There are no dioxins in plastic The Facts: There are no dioxins in plastic and even if there were, a temperature and even if there were, a temperature above 1500 degrees would be required to above 1500 degrees would be required to released them. Most household plastics released them. Most household plastics begin to melt at temperatures of about 230 begin to melt at temperatures of about 230 degrees.degrees.

90% of human dioxin intake comes from 90% of human dioxin intake comes from eating animal fat.eating animal fat.

Cell Phones Pop PopcornCell Phones Pop Popcorn

The hoax: a viral video shows a group of The hoax: a viral video shows a group of people using several cell phones to pop people using several cell phones to pop popcorn kernelspopcorn kernels

Cell phone pop popcornCell phone pop popcorn The Facts: cell phonesThe Facts: cell phones

do not put out enoughdo not put out enoughenergy to pop a kernel energy to pop a kernel of pop cornof pop corn

Bonsai KittensBonsai Kittens

The Hoax: A website offers bonsai kittens The Hoax: A website offers bonsai kittens for sale. These kittens are placed in jars for sale. These kittens are placed in jars and fed through tubes. The kittens grow and fed through tubes. The kittens grow within the jar and take on the jars shape, within the jar and take on the jars shape, similar to how a bonsai tree is made. similar to how a bonsai tree is made. Bosai kittens are the latest decorating fad!Bosai kittens are the latest decorating fad!

Such a hew and cry was raised over the Such a hew and cry was raised over the site that in 2001 the FBI subpoenaed the site that in 2001 the FBI subpoenaed the website’s records.website’s records.

Bonsai KittensBonsai Kittens

The Facts: the bonsai kitten website was The Facts: the bonsai kitten website was hoax perpetrated by mischievous MIT hoax perpetrated by mischievous MIT students. No one ever tried to make or students. No one ever tried to make or sell bonsai kittens. No one ever sold sell bonsai kittens. No one ever sold equipment to make bonsai kittens. This is equipment to make bonsai kittens. This is obvious as links to buy products didn’t obvious as links to buy products didn’t actually go anywhere and no samples of actually go anywhere and no samples of real bonsai kittens were shown on the real bonsai kittens were shown on the website. The ones in the above slide are website. The ones in the above slide are an example of bad photo fakery. an example of bad photo fakery.

Charleston Heston’s Gun Charleston Heston’s Gun CollectionCollection

The Hoax: When actor and NRA spokesperson The Hoax: When actor and NRA spokesperson Charleton Heston died a secret vault was Charleton Heston died a secret vault was discovered containing the largest cache of discovered containing the largest cache of weaponry ever found to be in possession of a weaponry ever found to be in possession of a civilian.civilian.

Deodorants Cause Breast CancerDeodorants Cause Breast Cancer

The Hoax: Women stopThe Hoax: Women stopusing underarm deodorants! using underarm deodorants! Chemicals in deodorants,Chemicals in deodorants,specifically the anti-specifically the anti-perspirant type block theperspirant type block thebody’s release of toxinsbody’s release of toxinsthrough the arm pit, through the arm pit, thus causing a build up thus causing a build up which leads to breast which leads to breast cancer. Also, shaving yourcancer. Also, shaving yourunderarms makes the blockage worse.underarms makes the blockage worse.

Deodorant Causes Breast CancerDeodorant Causes Breast Cancer

The Facts: The FDA has quashed this The Facts: The FDA has quashed this myth, quoting the National Cancer myth, quoting the National Cancer Institute, saying that "no existing scientific Institute, saying that "no existing scientific or medical evidence links the use of or medical evidence links the use of underarm antiperspirants or deodorants to underarm antiperspirants or deodorants to the subsequent development of breast the subsequent development of breast cancer.” cancer.”

Burundanga on Business Cards Burundanga on Business Cards

The Hoax: Criminals are using drug The Hoax: Criminals are using drug soaked business cards to incapacitate soaked business cards to incapacitate their victims. Variant: criminals are using their victims. Variant: criminals are using ether inside sample perfume bottles to ether inside sample perfume bottles to incapacitate their victims.incapacitate their victims.

Burundanga on Business CardsBurundanga on Business Cards

The Facts: For Burundanga, it is most The Facts: For Burundanga, it is most likely too difficult to deliver enough of the likely too difficult to deliver enough of the drug in powder or vapor form to drug in powder or vapor form to incapacitate a full grown adult. Similarly it incapacitate a full grown adult. Similarly it takes more than a few puffs to knock takes more than a few puffs to knock someone out with ether.someone out with ether.

Human Parts FactoryHuman Parts Factory

The Hoax: Eastern European countries The Hoax: Eastern European countries are secretly operating human parts are secretly operating human parts factories using the bodies of the homeless, factories using the bodies of the homeless, convicted criminals, and the mentally ill. convicted criminals, and the mentally ill. An e-mail warns those traveling in Russia An e-mail warns those traveling in Russia to not go out at night or talk to strangers to not go out at night or talk to strangers lest they be abducted and have their lest they be abducted and have their organs stolen.organs stolen.

Human Parts Factory Human Parts Factory

The Facts: Viable organs need to be The Facts: Viable organs need to be harvested soon after death. In most harvested soon after death. In most cases, organs are taken from individuals cases, organs are taken from individuals who have been declared “brain dead” or who have been declared “brain dead” or are donated by living donors. From the are donated by living donors. From the looks of these photos the corpses have looks of these photos the corpses have sat along time allowing decay to occur. sat along time allowing decay to occur.

UPS UniformsUPS Uniforms

The Hoax: An The Hoax: An Islamic group recently Islamic group recently purchased over purchased over $32,000 worth of $32,000 worth of UPS uniforms fromUPS uniforms froman EBay auction. an EBay auction. The guys in brown The guys in brown may be delivering may be delivering something more thansomething more thanpresents next Xmaspresents next Xmasseason!season!

UPS UniformsUPS Uniforms

The Facts: The FBI has thoroughly The Facts: The FBI has thoroughly investigated and found this rumor to be investigated and found this rumor to be false. Occasionally uniforms of all sorts false. Occasionally uniforms of all sorts wind up on EBay, most of which come wind up on EBay, most of which come from thrift stores. It makes little sense for from thrift stores. It makes little sense for an organization to spend so much money an organization to spend so much money on items that are easily duplicated, like the on items that are easily duplicated, like the standard brown and gold of UPSstandard brown and gold of UPS

The $250 Cookie Recipe The $250 Cookie Recipe

You receive an e-mail relating a story of how a You receive an e-mail relating a story of how a person was cheated out of $250 by Neiman person was cheated out of $250 by Neiman Marcus for a cookie recipe. A variant uses the Marcus for a cookie recipe. A variant uses the Waldorf Astoria and red velvet chocolate cake. Waldorf Astoria and red velvet chocolate cake.

The $250 Cookie RecipeThe $250 Cookie Recipe

The Facts: Both Neiman Marcus and the The Facts: Both Neiman Marcus and the Waldorf Astoria provide recipes free of Waldorf Astoria provide recipes free of charge any one who asks.charge any one who asks.

Prior to this rumor Neiman Marcus didn’t Prior to this rumor Neiman Marcus didn’t even serve cookies!even serve cookies!

E-mail hoaxesE-mail hoaxes

Most e-mail center on getting free cash or Most e-mail center on getting free cash or prizes through forwarding e-mails. Needless prizes through forwarding e-mails. Needless to say no cash or prizes will be forthcoming. to say no cash or prizes will be forthcoming.

Also pervasive is the “free stuff” e-mail hoax, Also pervasive is the “free stuff” e-mail hoax, where you receive an e-mail saying on where you receive an e-mail saying on November 1st Starbucks will be giving out November 1st Starbucks will be giving out FREE COFFE!. It’s not true!FREE COFFE!. It’s not true!

Lastly, be wary of e-mails regarding missing Lastly, be wary of e-mails regarding missing children, these are more often than not children, these are more often than not hoaxes. hoaxes.

How to Spot Hoaxes on the How to Spot Hoaxes on the InternetInternet

Supposedly free cash or prizes, appeals to help Supposedly free cash or prizes, appeals to help sick children, etc. in exchange for sick children, etc. in exchange for forwarding e-forwarding e-mailsmails

Warnings about virus threats. Please let all your Warnings about virus threats. Please let all your friends know by friends know by forwarding e-mailsforwarding e-mails

Dire warnings about products, companies, Dire warnings about products, companies, government policies, or coming eventsgovernment policies, or coming events

Information “they don’t want you to know about” Information “they don’t want you to know about” like miracle cures and amazing devices, are like miracle cures and amazing devices, are being kept from you by the government!being kept from you by the government!

Internet Phenomena Internet Phenomena

1.1. Leave Brittany Alone!Leave Brittany Alone!2.2. RickrollingRickrolling3.3. LoL CatsLoL Cats4.4. All Your BaseAll Your Base5.5. Numa Numa guyNuma Numa guy6.6. Post a SecretPost a Secret7.7. Angry German kidAngry German kid8.8. Star Wars KidStar Wars Kid9.9. Scambaiting Scambaiting 10.10. MyspaceMyspace

Leave Britney AloneLeave Britney Alone

Leave Britney AloneLeave Britney Alone

RickrollingRickrolling

Lol CatsLol Cats

Cats murdering the English language is Cats murdering the English language is funny right?funny right?

All Your Base Are Belong To USAll Your Base Are Belong To US

AYB Video

The Numa Numa GuyThe Numa Numa Guy

Numa Numa Dance

Post a Secret

Angry German KidAngry German Kid

Angry German Kid

Star Wars KidStar Wars Kid

Star Wars Kid

Scambaiting Scambaiting

My Space My Space

My Space is a social My Space is a social networking website networking website offering an interactive,offering an interactive,user-submitted user-submitted network of friends,network of friends,personal profiles, personal profiles, blogs, groups, photos,blogs, groups, photos,music, and videos formusic, and videos forteenagers and adults internationally.teenagers and adults internationally.

Embarrassing E-mails BlundersEmbarrassing E-mails Blunders (think before you hit send) (think before you hit send)

An attorney was fired over e-mail exchange An attorney was fired over e-mail exchange regarding $8 dry cleaning bill.regarding $8 dry cleaning bill.

A police dispatcher accidentally e-mailed 14,000 A police dispatcher accidentally e-mailed 14,000 law enforcement officials when her yogurt went law enforcement officials when her yogurt went missing from the fridge.missing from the fridge.

A vice president accidentally sent details of all A vice president accidentally sent details of all his employees’ salaries on a company group his employees’ salaries on a company group email. Realizing his error, he set the fire alarm email. Realizing his error, he set the fire alarm off to clear the office before deleting the email off to clear the office before deleting the email from every inbox. from every inbox.

A schoolgirl found herself receiving emails A schoolgirl found herself receiving emails containing top secret information from the containing top secret information from the Pentagon after being accidentally added to Pentagon after being accidentally added to an e-mail list by a navy commander.an e-mail list by a navy commander.

When black secretary Rachel Walker When black secretary Rachel Walker announced her resignation from his firm, announced her resignation from his firm, lawyer Adam Dowdney emailed a lawyer Adam Dowdney emailed a colleague saying: "Can we go for a real fit, colleague saying: "Can we go for a real fit, busty blonde this time?” A remark which busty blonde this time?” A remark which cost him $20,000 in a lawsuit. cost him $20,000 in a lawsuit.

ScammersScammers

Scammers: These are the easiest group of Scammers: These are the easiest group of people to understand. They want to cheat people to understand. They want to cheat you and take your money! Why? There are you and take your money! Why? There are lazy and its beats working for a living or lazy and its beats working for a living or being a real criminal and risking getting being a real criminal and risking getting shot and/or doing hard time. The internet shot and/or doing hard time. The internet allows them to send out millions of e-mails allows them to send out millions of e-mails and they only need one gullible person to and they only need one gullible person to take the bait.take the bait.

HoaxersHoaxers Hoaxers: Some hoaxes are started accidentally by good Hoaxers: Some hoaxes are started accidentally by good

natured people who simply don’t realize that the natured people who simply don’t realize that the information they are spreading is falseinformation they are spreading is false

Some are created deliberately to harm a person or an Some are created deliberately to harm a person or an organization’s reputationorganization’s reputation

Some are created to draw attention to a social problemSome are created to draw attention to a social problem Some are created to satirize a popular practice or Some are created to satirize a popular practice or

phenomenaphenomena Some are created with the purpose of instilling fear, Some are created with the purpose of instilling fear,

uncertainty and doubt about strangers, foreigners, newer uncertainty and doubt about strangers, foreigners, newer technology, etc.technology, etc.

Lastly some hoaxes are perpetrated simply to prove how Lastly some hoaxes are perpetrated simply to prove how smart the hoaxer is by fooling us all! smart the hoaxer is by fooling us all!

PhenomenaPhenomena

Phenomena: Phenomena: MemesMemes, like genes are units of human , like genes are units of human culture. No one can really explain why some catch on culture. No one can really explain why some catch on and others do not. A definite paradigm shift with the and others do not. A definite paradigm shift with the internet is the idea of no more gate keepers. Viewer internet is the idea of no more gate keepers. Viewer produced and controlled content and the “in-joke” are produced and controlled content and the “in-joke” are king. Sitcom type humor and tired TV dramas are dead! king. Sitcom type humor and tired TV dramas are dead!

The anonymity of the internet tends to work against the The anonymity of the internet tends to work against the old saying, “If you can’t say something nice…” Shaden old saying, “If you can’t say something nice…” Shaden Freuda: German for happiness at the misfortune of Freuda: German for happiness at the misfortune of others. Laughing at idiots and ridiculing them is others. Laughing at idiots and ridiculing them is considered fun and a moral obligation. considered fun and a moral obligation.

““HEY LOOK! This person is a total train wreck!HEY LOOK! This person is a total train wreck! LOL!” LOL!”