Internet & E-Mail FraudInternet & E-Mail Fraud

Protect the Firm and YourselfProtect the Firm and Yourself

David KearneyDavid Kearney

August 2009August 2009

Fraud Has Always ExistedFraud Has Always Existed

Social Engineering Social Engineering

Bait and Switch Bait and Switch

ForgeryForgery

Ponzi Scheme Ponzi Scheme

Insurance FraudInsurance Fraud

False AdvertisingFalse Advertising

Quackery Quackery

What is Internet FraudWhat is Internet Fraud

The term "Internet fraud" generally refers The term "Internet fraud" generally refers to any type of fraud scheme that uses one to any type of fraud scheme that uses one or more online services - such as chat or more online services - such as chat rooms, E-Mail, message boards, or Web rooms, E-Mail, message boards, or Web sites - to present fraudulent solicitations to sites - to present fraudulent solicitations to prospective victims, to conduct fraudulent prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of transactions, or to transmit the proceeds of fraud to financial institutions or to others fraud to financial institutions or to others connected with the scheme. (Wikipedia connected with the scheme. (Wikipedia 2009) 2009)

Old School vs. Internet-Age Based Fraud…Old School vs. Internet-Age Based Fraud…

All the Same Intentions…To Take All the Same Intentions…To Take advantage of YOU through Trickery & advantage of YOU through Trickery & Deception Deception

Vehicles of Internet FraudVehicles of Internet Fraud

E-MailE-Mail

Instant Messaging/ChatInstant Messaging/Chat

Web SitesWeb Sites

Message BoardsMessage Boards

TelephoneTelephone

Obvious Signs of Potential Internet Obvious Signs of Potential Internet FraudFraud

Requests to wire money to a bank outside the country.Requests to wire money to a bank outside the country.Requests referring to you as Sir/Madam and not by Name.Requests referring to you as Sir/Madam and not by Name.Extensive Grammatical Errors, numerous spacing between letters.Extensive Grammatical Errors, numerous spacing between letters.““URGENT” Requests for Personal Information.URGENT” Requests for Personal Information.Links within Suspicious E-Mail or from Unknown Senders.Links within Suspicious E-Mail or from Unknown Senders.Sensationalist or emotional language. Sensationalist or emotional language. E-Mail written in all capital letters.E-Mail written in all capital letters.E-Mail states that the recipient was recommended for honesty and E-Mail states that the recipient was recommended for honesty and business aptitude.business aptitude.

If Something Sounds To-Good-To-Be-If Something Sounds To-Good-To-Be-True…It Probably IsTrue…It Probably Is

Not So Obvious Signs of Internet Not So Obvious Signs of Internet FraudFraud

Evil Twin Networks Evil Twin Networks

Official Looking Money Orders, ChecksOfficial Looking Money Orders, Checks

E-Mail Appearing to be Sent from E-Mail Appearing to be Sent from Legitimate Business SourceLegitimate Business Source

Examples of Internet FraudExamples of Internet Fraud

Direct solicitationsDirect solicitationsOnline automotive fraudOnline automotive fraudCash the check systemCash the check systemRe-shippersRe-shippersBusiness opportunity/"Work-at-Home" Business opportunity/"Work-at-Home" schemesschemesMoney Transfers FraudMoney Transfers FraudInternet ticket fraudInternet ticket fraudAdvance-fee fraudAdvance-fee fraud

Protect the Firm, Protect YourselfProtect the Firm, Protect Yourself

Legitimate businesses will never ask you to Legitimate businesses will never ask you to confirm sensitive information from a Web site. confirm sensitive information from a Web site. Never access a site by clicking on a link from Never access a site by clicking on a link from within E-Mail.within E-Mail.Never open an attachment or file from an Never open an attachment or file from an unidentified source.unidentified source.Contact the sender directly if there is any doubt Contact the sender directly if there is any doubt about communications you received that about communications you received that contains an attachment, requests personal contains an attachment, requests personal information, or if your 6information, or if your 6 thth sense tells you sense tells you something isn’t quite right.something isn’t quite right.