Internet Fraud
Currently, the world boosts over two billion internet
users. About ten percent of this number use internet in one way or the other
for business related activities. Many entrepreneurs have been bred and nurtured
online with the number increasing every day. With internet access, millions of
entrepreneurs trade their products and services from all over the world. Ideas
likewise are passed globally through the internet. But with every positive
innovation that has been introduced, thousands of cloaked and fraud means have
been devised. Many legit websites usually highlight methods that have been used
previously by fraudsters to ensure that their clients do not fall victims. Many
methods both simple and complex have been used to steal from unsuspecting
internet users.
Fraud.org has listed methods that have been reported by
internet users. Some methods are complex and can cost both companies and
individual’s great losses, curbing such methods require full attention of IT
departments in different companies. Other methods used by fraudsters are easily
indentified and curbed but Fraud.org is obligated to highlight all methods that
have been used to ensure that global population is aware of such methods. While
dealing with some fraud methods require vigilance and heavy investment in IT,
some methods can be stopped through educating target population.
There is a list of TOP 10
Internet scams for 2007 on Fraud.org. The list is made of threats which are
equally dangerous for internet-based businesses and ordinary users operating
online. There are methods that have been used for decades while some appeared
once and have not appeared again. Top on the list are methods that are
intricate and have been used in many countries over long periods of time. Here
is a quick review of some of the main threats:
1.) Fake check schemes:
companies paid with fake checks for products or services delivered. Individuals
can also become victims as they might be paid with fake checks for certain
products sold through some web platforms. Fraudsters provide high level
profiles that their victims can fall for. Clients are provided with enough,
fake, evidence that they are less likely to doubt. Making online follow ups
after such instances is always very difficult because no physical contacts are
provided by such fraudsters.
2.) General merchandise:
individuals pay for products that are never delivered to them. Companies can
also fall victims to this fraud method. Products being sold vary from small
ornamental elements to large products such as vehicles and machines. When large
components are involved, the fraudsters mostly have adequate knowledge about
their victims and they easily guide them through fake processes. Using strict
sales policies that require clients to pay for products fully before they are
delivered to them, the fraudsters are able to convince their victims to send
money and expect their products to be delivered later.
3.) Money offers: individuals are asked to
send some cash for depositing large sums of money on their personal accounts.
Most fraudsters masquerade as direct benefactors of prominent or rich
personalities that have passed on. Armed with cover stories about inexperience
and security, fraudsters initiate dialogues with their victims but require them
to pay some money to facilitate processing of fund transfer. Fraudsters always
target many people at a time.
4.) Lotteries/lottery clubs: email notifications of some money or prize
won even though individuals never bought a ticket to participate in said
lottery drawing. This method always tests the greed of email recipients, many
people like getting easy money. Such people are likely to respond to emails
notifying them about lotteries they have won. Progressively, the fraudsters
request the respondents to send money to facilitate processing and transfer of
the money.
5) Advance fee loans: promises
of issuing a loan no matter how bad individual’s or company’s credit record is.
Fraudsters understand that many individuals are constantly faced with financial
difficulties and would do anything to get credit advances. Providing loan
offers to such companies and individuals only reminds them of how much they
need such loans and consequently, they may respond to such emails. Like many
other methods used by fraudsters, their tricks terminates with requests for
money and credits.
These and other threats can be
easily identified if an individual carefully examines contents of a website
where an offer is made or carefully reads an incoming email: usually phone
numbers and addresses provided in these sources are non-existent and there are
a lot of spelling/grammatical mistakes even though the source claims to be
based in an English-speaking country. However, there are some methods that are
carefully sown and are usually more difficult to detect.
Explaining Deviance
Theories developed to explain
conventional crimes can be also successfully applied to Internet fraud. We have
chosen Merton’s Strain Theory to explain motives and simulating factors that
make people around the globe to engage into Internet-based deviant forms of
conduct.
Strain Theory
Merton’s Strain theory
(sometimes also referred to as anomie theory and rarely means-ends theory) was
written in 1940 (Perdue, 1986). It is very popular today and has been applied
to explain high criminality rates in the United States, especially in
low-income sections of large cities.
In Merton’s interpretation, anomie
involves a situation in which there is an imbalance between the society’s
assumptions of what is needed to be successful and the appropriateness of the
ways of acquiring those things. The imbalance is between goals and means
(Perdue, 1986).
It was noted by some prominent
researchers that Merton’s theory perfectly explains high rates of deviant
behavior in the United States as compared with other developed countries. It is
even better fitted to explain why certain subgroups of American society more often
violate social norms and laws than others. Merton listed many factors that
determine and are indicative of an individual’s level of conformity with
conventional norms- class, race, ethnicity, social status, income etc. In United States we have a culture which
stresses success and economic prosperity associated with it. Everyone is
supposed to be successful and if someone stops trying to achieve success, he is
considered a looser.
It is not surprising that
members of this society, or at least parts of it, tend overlook or show some
flexibility on the appropriateness of the means of achieving success. It is right that institutions of social
restraint (like families, churches, and schools) promote conventional means:
hard working, ambition, investment into education and some special skills.
However, there is very strong opposition to these assumptions about
appropriateness of means: It is too tentative for young people to engage in
illegal activities which can reap short-term benefits and satisfaction. In some
circumstances to violate the law is the easiest and not least important
quickest way of achieving “success”.
It is because success is too overrated and in fact, put
over virtue that America has one of highest criminality rates in the world,
Merton argues (Perdue, 1986).
According to Merton, people respond to this dysfunction
of goals and means in different ways? To explain this in greater detail, we
have to look at Merton’s theory of adaptation:
1. Conformity refers to people’s unequivocal acceptance
of the goals defined by the culture and the conventional norms of achieving
them. Merton, perhaps too optimistically, thinks that the majority of people
are conformists, as they prefer to abide by laws and follow the norms of
conduct even if their access to conventional means is minimized by the
circumstances.
2. Innovation refers to a situation in which people
accept socially defined goals but refuse to employ conventional means of
achieving them. Innovation explains why is so that uneducated and unemployed
people tent to violate law- their access to conventional means of achieving
goals is limited but they still want to be successful.
3. Ritualism refers to a situation in which a person is
committed to socially defined practices which would have lead him to success
but is not primarily motivated by receiving financial gains. This happens, for
example, when an individual works hard but did not inspire by earning big
money.
4. Retreatism occurs when a person abandons both the
socially defined goals and means of achieving them. Retreatists stop
interacting with the society and often become alcohol or drug addicted.
5. Rebellion refers to a situation in which a person
denies both the socially defined goals and means of achieving them and instead
develops his own goals and means. Example of this is abandonment of goals of
personal material gains for a public good by social activists (Merton, 1949).
Merton writes that innovators are people who break rules,
violate laws in order to achieve the goals that are advertised everywhere. This
means that the society is partially responsible for the increase in criminality
rates because its promote goals which in certain circumstances cannot be
achieved by certain groups of people through conventional and legal means.
Merton believes that “the pressure toward innovation not infrequently erases
the distinction between business-like strivings this side of the approved norms
and sharp practices beyond the norms” (Purdue, 1986). “The greatest pressures
towards innovation” are still at the lower levels, meaning the poor and
socially disadvantaged parts of the society. He notes that in lower levels
“incentives for success are provided by the established values of the culture
and second, the avenues available for moving toward this goal are largely
limited by the class structure to those of deviant behavior. It is the
combination of the cultural emphasis and the social structure which produces
intense pressure for deviation” (Purdue, 1986). “Despite our persisting
open-class ideology, advance toward the success-goal is relatively rare and
notably difficult for those armed with little formal education and few economic
resources” (Purdue, 1986). “Within this context, Al Capone represents the
triumph of amoral intelligence over morally prescribed "failure,"
when the channels of vertical mobility are closed or narrowed in a society
which places a high premium on economic affluence and social ascent for all its
members” (Purdue, 1986).
Conclusion
As with conventional crimes,
there is no one perfect formula to combat internet-based fraud. However with
good security checks and due level of diligence individuals and businesses can
greatly decrease their exposure to internet-based fraud. Reviews made by
victims and other people that have witnessed such frauds can greatly help to
curb such crimes. Eliminating online frauds is almost impossible as there are
very many users and openings that can be used by the fraudsters. To avoid
internet frauds, companies and individuals should be vigilant at all times.
They should not trust anything that they encounter online whether the websites
they visit are legit or not. Fraud.org on the other side should strive to have
a wider following and publish every incidence reported as a part of their
bulletin to ensure that many people understand the dangers that they face when
they trade online.
References
Marwah,
Sanjay, and Mathieu Deflem. (2006).”Revisiting Merton: Continuities in the Theory
of Anomie-and-Opportunity-Structures,” pp. 57-76 in Sociological Theory and
Criminological Research: Views from Europe and the United States.
Merton,
Robert K. (1949). Social structure and anomie: Revisions and extensions. In
R.N. Anshen (Ed.), The family: Its functions and destiny, pp. 226-257, New York:
Harper.
National
Consumers League’s Fraud Center. 2007 Top 10 Internet Scams at http:// www.fraud.org
Purdue,
William D. (1986). Sociological Theory: Explanation, Paradigm, and Ideology.
Palo Alto, CA: Mayfield Publishing Company.
No comments:
Post a Comment