The report reveals that high levels of fraud and abuse may cause more and more consumers to lose trust, a key component of any successful business. Malicious software, phishing, and spam were cited as primary causes for the high levels of fraud and abuse on the Internet.
Studies indicate that over 80 percent of all e-mail is spam. It should be noted that spam is the preferred delivery vehicle of fraud and abuse on the Internet. Malware and phishing normally start with a spam e-mail. In Phishing schemes — which are designed to steal personal and financial information — the use of malicious software to automatically steal information is on the rise. In the past, phishing normally relied on a social engineering scheme to accomplish this goal.
The Anti Phishing Working Group, an organization that tracks phishing activity, has noted an increase in the use of malicious software to phish information. They speculate that ability of e-criminals to use automated tools to spread crimeware (a.k.a. malware) could be the reason for the increase.
The report states that although the Federal Trade Commission is stepping up enforcement activity, its resources are limited and more action by the state attorney generals is desperately needed. It cites as an example that over the past three years, only 11 cases against spyware distributors have been brought forward by the states, which is the same number taken for action by the FTC.
The Center for American Progress and the Center for Democracy and Technology asked states to provide data on the complaints they received 2006 and 2007. Thirty-six states responded and most of them had an Internet-related category listed in their top-ten complaints. It was also noted that overall Internet-related complaints increased from 2006 to 2007. Eight of the states listed Internet-related complaints in their top-three, and four states listed them as being the number-one complaint.
The FTC, which gathers data on a much wider scale, noted an increase of 16,000 Internet-related complaints in 2007 versus the number received in 2006. When comparing the numbers to 2005, an increase of 24,000 complaints was noted.
Article Author: Ed Dickson
Having worked around financial crimes for a number of years, I noticed they seemed to be on the rise. One reason for this is technology, which grows more rapidly than laws designed to protect us from it. …
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