15 Types of internet scam

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

Advance Fee internet scam

Up 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 people 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 often referred to as the 419 scams. 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.


Job internet scam

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

The job on offer may require you to do something simple such as stuffing envelopes. Or assembling a product using tools 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.

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 job internet scam that asks you to use your bank account to receive. And pass on payments to 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 works.

Counterfeit checks

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

Credit card fraud

Internet credit card fraud is an inclusive term for fraud committed using a payment card, such as a credit card or debit card. The goal may be to gain 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 client processes a payment to another account controlled by a criminal, or not authorized, where the account holder does not allow the payment to proceed and the transaction carried out by a third party.

Freight forwarding

The simple yet effective scheme uses two different fraudsters to pull off the crime, Operators, and staffers. Operators create fake reshipping sites 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.

Investment 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 false or misleading information or fictitious opportunities.

Internet Scam

Non delivery 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 internet scam

Scam auction involves schemes attributable to the falsehood 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.

Internet Scam

Fake escrow sites internet scam

Fake escrow sites 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 sites.

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

Internet Scam

Pyramid schemes and Ponzi schemes

Both pyramid schemes and Ponzi schemes involve not scrupulous investors taking advantage of not suspecting individuals by promising them wonderful 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 take part or perhaps sell a certain product.


Internet Scam

See also Internet fraud problem

Easy making money fraud

How to Avoid Online Email Scams

Top rules to avoid internet fraud

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