15 Types of internet scam

Internet scam is the use of Internet services. Or software with Internet access to defraud victims or to otherwise take advantage of them. Internet crime schemes steal millions of dollars each year from victims. And continue to plague the Internet through various methods.

Advance fee (Nigerian letter scam)

According to the Securities and Exchange Commission. Advance Fee internet scam gets its name from the fact that an investor asked to pay a fee upfront or in advance of receiving something of greater value. This type of internet scam was around for quite some time.

Although the scam was around for decades. It appears that the number of individuals falling prey to it is actually increasing. The internet scam, which goes by a number of names, has proliferated and even transformed over the years.

The scam is often referred to as the 419 scam. So entitled after the section of the Nigerian penal code which addresses financial schemes. Since its inception, it has changed forms in an attempt to lure in additional victims.

Business or employment internet scam

The scammer contacts you by email, letter, or phone and offers you employment that requires very little effort for high returns. Or a guaranteed way to make money rapidly.  You may even come across false job opportunities on classified ad websites.

The employment on offer may require you to do something simple such as stuffing envelopes. Or assembling a product using materials that you have to buy from the ‘employer’.  To accept the job they will ask you to pay for a starter kit. Or materials relevant to the job or scheme.

If you pay the fee you may not receive anything. Or what you receive isn’t what you expected or were promised. For instance, instead of a ‘business plan’. They may send you instructions on how to get other people to join the same scheme.

On completion of your work, the scammer will refuse to pay you for some or all of your work. Using apologies such as the work is not up to the required standard.

Another type of employment opportunity internet scam asks you to use your bank account to receive. And pass on payments for a foreign company. The scammers promise you a percentage commission for each payment you pass on. This is likely a form of money laundering which is a criminal offense.

If you provide your account details the scammer may use them to steal your money or commit other fraudulent activities.

Counterfeit check internet scam

Counterfeit checks include any checks that have been created fraudulently with the objective of stealing money from someone.

This category can involve fake cashier’s checks, money orders, personal checks, and business checks. In some cases, all the information on the check is fake, but in other situations, internet scam artists create counterfeit checks using real accounts and routing numbers.


Internet credit card frauds

Internet credit card fraud is an inclusive term for fraud committed using a payment card, such as a credit card or debit card. The purpose may be to obtain goods or services or to make payment to another account controlled by a criminal. The Payment Card Industry Data Security Standard (PCI DSS) is the data security standard created to help businesses process card payments securely and reduce card fraud.

A credit card scam can authorize, where the genuine customer themselves processes a payment to another account controlled by a criminal, or unauthorized, where the account holder does not provide authorization for the payment to proceed and the transaction carried out by a third party.

Credit cards are more secure than ever, with regulators, card providers, and banks taking considerable time and effort to collaborate with investigators worldwide to ensure fraudsters aren’t successful.

Cardholders’ money is protected usually from scammers with regulations that make the card provider and bank accounts. The technology and security measures behind credit cards become increasingly sophisticated making it harder for fraudsters to steal money.

Freight forwarding or reshipping internet scam

The simple yet effective scheme uses two different fraudsters to pull off the crime, Operators, and staffers. Operators create fake reshipping websites designed to look like legitimate freight forwarding companies and recruit work-from-home employees whose sole job is to receive and reship packages on their behalf.

Manipulators then market these reshipping mules also called parcel mules or drops among fraudsters, to Stuffers who own the stolen credit cards and need a place to ship their goods that won’t raise concern from the e-commerce business from which they’re ordering (stealing). Operators and Stuffers typically split the profit on a fraudulent order while the mule gets nothing.

Investment schemes internet scam

Investment internet scam generally refers to a wide range of deceptive practices that scammers use to induce investors to make investing decisions. These practices can include untrue or misleading information or fictitious opportunities.

Investment scams may involve stocks, bonds, notes, commodities, currency, or even real estate. The scams can take many forms and fraudsters can turn on a dime when it comes to developing new pitches or come-ons for the latest fraud.

Internet Scam

Nondelivered of goods/services internet scam

In a non-delivery scam, criminals promise highly sought-after goods, collect a payment, and then never deliver. While the principle is simple, the fraud scheme is often sophisticated and can yield huge profits.

Criminals can adopt a well-established method to suit any product, from masks during a pandemic to electronics or even everyday items such as paper.

The bigger the sale, the bigger the profit. Products are sold by the container load, meaning that payments can easily run into the millions.

Internet Scam

Online auction and other sales internet scam

Scam auction involves schemes attributable to the misrepresentation of a product advertised for sale through an Internet scam auction site or the non-delivery of products purchased through an Internet scam auction site.

In advance of making a purchase on an Internet scam auction site, be sure to review the site’s fraud prevention tips and additional security alerts.

Internet Scam

Fake escrow websites

Fake escrow websites may be one of the most successful internet scams of all time. This is because they prey on big-ticket auction winners and rely on the consumer’s trust in escrow websites.

The losses incurred by auction winners from phony escrow sites are in the tens of thousands of dollars at a time and have quickly added up to millions of dollars in losses for big-ticket auction winners.

This has happened because the use of escrow websites has been considered the safe way to make an exchange when an online auction involves an item of more than average value.

This almost universal trust of escrow opened the door for the criminal element to come in and exploit that trust. You need to be very careful because it’s hard to tell a phony escrow site from a real one.

Internet Scam

Pyramid or Ponzi schemes internet scam

Both pyramid schemes and Ponzi schemes involve unscrupulous investors taking advantage of unsuspecting individuals by promising them extraordinary returns in exchange for their money.

With Ponzi schemes, investors give money to a portfolio manager. Then, when they want their money back, they are paid out with the incoming funds contributed by later investors.

With a pyramid scheme, the initial schemer recruits other investors who in turn recruit other investors and so on. Late-joining investors pay the person who recruited them for the right to participate or perhaps sell a certain product.


Internet Scam

The beard club scam 

The Beard Club scam is an online subscription service that delivers custom-made boxes of all-natural beard products to your door each month, including oils, balms, waxes, shower items, growth accelerators, and more.

The Beard Club scam does have an option for you to only spend a dollar a month on their products (this only includes one small bottle of oil), but where they get you is with all the extra add-ons.

Russ Ruffino scam 

If you are tired of pleasing the cheap customers and want to focus your business on serving the high-end customers, you might have heard of Russ Ruffino scam who is pitching you his program Clients on Demand.

But it is not designed for newbies. You should be a coach or consultant with some years of experience in order to benefit from this program.

Now, you might not be so sure if Russ Ruffino is a scam or a real deal. So I’ve spent some time conducting research on this guy and everything about his program.

1st phorm scam 

A large percentage of the population doesn’t get all the superfoods and vegetables they need for healthy living.

This is mostly because we don’t like these food sources due to their bad taste or we have cut out most of the food sources from our diets.

Taking 1st Phorm Opti-Greens 50 ensures we get more than 11 servings of antioxidants, veggies, superfoods, probiotics, and digestive enzymes for better health.

Pre-paid legal scam

Now let’s take a look at the MLM business opportunity.

According to the Media Moogle site which provides a variety of PrePaid Legal information including articles, lawsuits, complaints, pyramid scheme accusations, and more.

The company profits decreased 8% in 2009 but, during the same time period, the number of new sales distributors enrolled decreased 17.8%.

This is odd, actually, because when most network marketing businesses actually see a significant increase in their distributorship base during bad economic times.

Because when times get rough, people often start looking for ways to make extra money and a good MLM opportunity is the preferred choice of many.

Of course in ANY network marketing opportunity, you will have a tiny percentage of the active distributors who make a significant living.

Is newchic a scam?

On the surface, NewChic is not a scam—there are positive reviews from real people who seem to have had genuinely good experiences. While their return policies are not ideal, they are publicly advertised, leaving the consumer to buy at their own risk.

For more see 13 easy making money internet scam



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