Internet Business Frauds
Internet Business Frauds
Promises of significant amounts of cash, goods and services lure innocent victims without overlooking its consequences.
“When it sounds too good to be true, it probably is!”
“Nine out of ten fraudsters avoid prosecution and 40% of those avoided prosecution continue scamming.”
Common Scams
1. ‘Upfront Payment’ Mass Marketing Fraud
Victims are usually asked to pay upfront for a service/product/scheme before receiving them. Upon payment, sometimes half, the victim losses contact with the provider and bears full responsibility on its cost.
Related to Nigerian Letter Scams and Overpayment Scams.
2. ‘Blank Promises’ Business Investment Fraud
Victims are often pressed by marketing and sales personnel claiming to work in a legitimate, big company. Often done over the internet or the telephone. In order to portray professionalism and gain trust, they often equip themselves with excellence – Receptionist, fake sales office, fake addresses, professionally designed brochures and investment counselors. When the victim decides to give it a go, which often involved a substantial amount of investment money, everything is voided and the salesperson goes missing.
Related to Security Scams and MLM Scams.
3. Corporate Frauds
Includes fraud by or against a company. Often, the promising company (fraudster) provides misleading information to shareholders or top-level management to invest in a particular service and/or product for individual financial gain. Included are partnership programs without reading terms and conditions, incorrect information entry on the financial report, siphoned money for individual gain charging to the company without receiving, fictitious revenues, concealed liabilities and expenses.
Related to Financial Report Scams and Wire Transfer Frauds.
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