INTERNET CRIME

13 Pages 3253 Words

ly placing hype on one stock. The individual was releasing false press and stating that it was engaging in actions that the company was not. This scam is what is commonly referred to as “pump-and-dump.” Basically what the criminal did was over hype a stock, often because they wish to dump it. They use high-pressure sales, illusions of investor interest and false information. When the individuals start buying they drive up the price. After this the con will drop the shares at a much lower price sending the stock price back to zero. Some other commonly known scams are that of “The Pyramid.” This is basically an electronic version of the real life Pyramid Scheme stating that one can make a lot of money from their home computer. There is also “The Risk-Free” fraud and this boasts low-risk investment opportunities such as wireless cable projects. Finally there are “Off-Shore” frauds. This refers to fraud that occurs over seas. Agencies warn individuals about this scheme because it is difficult for North American officials to investigate foreign fraud. This is because of the invisible boarders. [3] One of the reasons the chat rooms are convenient for the fraudsters is that one individual can create the illusion of widespread interest by posting a series of messages under different code names. Fraud over the Internet can come in many forms. George Mannes in his article “Digital Dollars” defines Net Cash. This is electronic money that takes the form of letters and digits. Net Cash is a new method to send money across the Internet. The advantage of this system is that it’s convenient and fast. However the transfer of this money is vulnerable to eavesdropping. An instance where a form of net cash is used is with electronic gambling. Individuals place bets over the net, however “cyber thieves” can enter into the Net and steal a bet and use it as there own. Internet thieves have stolen credit cards ...