Internet Fraud and the Need For Public Education Essay

Internet Fraud and the Need For Public Education - Essay Example Fraud detection software and security patches can barely outpace the criminals who are constantly in search of a vulnerability to exploit. Firewalls, password technology, and biometric devices all contribute to making the personal data that is available on the Internet more secure, but it is usually the gullibility and ignorance of the computer user that is the weak link in the security chain. Professional and public education is the most effective method for reducing and eliminating the crime of Internet Fraud. Internet fraud is an important issue based on the magnitude of the economic cost and the number of people who are at risk of becoming a victim of fraud. While the overall number of crimes reported has experienced a slight drop in recent years, combined losses for the US and the UK is on the rise and topped $12 billion in 2007 when as many as 1 in 13 people unwittingly gave out personal information to scammers (Johnson 2008; 'Protect yourself online'). In the US, financial losses for Internet fraud have skyrocketed from $183.2 million in 2005 to $8.5 billion in 2007 (Dignan 2008, p.33; 'Protect yourself online'). ... Criminals have turned to Internet fraud in increasing numbers because their identity is easy to conceal, few resources are required to perpetuate the crime, there is easy access to countless potential victims, and they can operate in geographic locations where pursuing prosecution is complicated (Grazioli & Wang 2001, p.194). All these factors influence the type of fraud engaged in, the method of working the scam, and the selection of the victim. Anyone who comes into contact with the Internet can become the victim of Internet fraud, but there are some markers that indicate segments of the population who are typically more at risk. Perpetrators are overwhelmingly male, with only one out of four being female (Dignan 2008, p.33). Professional criminals will often target banks that are known to have lax security systems or a low rate of fraud recovery (Anderson 2007, p.5). The most common Internet fraud is the illegal downloading of software or music, and 25 percent of the 10 to 25-year-old age group admitted to committing this crime in 2004 (Wilson et al. 2006, p.iv). The personal victims are twice as likely to be male rather than female, and males lose a greater amount of money per transaction on average (Dignan 2008, p.33). Internet auction fraud, which accounts for two-thirds of the fraud complaints, had a median loss of $800, while the median loss for all Internet fraud was $424 (Bywell & Oppenheim 2001, p.267; Dignan 2008, p.33). As with crime in general, small losses are generally unreported.