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Reported Online Fraud Losses Soar; E-mail Tops Tactics: FBI
Apr 8, 2008 11:54 AM , By Ken Magill
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One would hope that by now people would have started getting wise to e-mail scams. But then, one would be wrong.

E-mail was by far the most-used vehicle perpetrators of online crime used to contact victims in 2007, the Federal Bureau of Investigation reported last week.

Moreover, Americans reported $240 million in online fraud losses in 2007, according to the FBI, an increase of $40 million from 2006, according to the FBI’s National White Collar Crime Center.

E-mail was contact method used in 73.6% of online scams, the FBI said in its 2007 Internet Crime Report.

Web pages were the No. 2 method, accounting for 32.7% of online crime contact strategies, according to the report. The telephone came in at No. 3 at 18%.

As for other methods, just over 11% of online scammers reached their victims in 2007 via instant messenger, 10% used postal mail, 5.3% used wire services, 3.9% used bulletin boards, 3.5% used fax machines, 2.3% approached their victims in chatrooms, 1.7% reached their victims in person, and 0.5% used newsgroups, the FBI reported.

The FBI’s Internet Crime Complaint Center in 2007 received 206,884 complaints, of which 90,000 were referred to various law enforcement agencies, according to the report.

“The Internet presents a wealth of opportunity for would-be criminals to prey on unsuspecting victims, and this report shows how extensive these types of crime have become,” said FBI Cyber Division assistant director James E. Finch, in a statement. “What this report does not show is how often this type of activity goes unreported.”

Median dollar loss in 2007 per complaint was $680, according to the FBI. Also, men lost on average $1.67 to every dollar women lost in online fraud last year, the FBI said.

Online auction fraud was the most-reported online crime last year, accounting for 35.7% of complaints, the FBI said. Non-delivery of goods or services was No. 2, accounting for 24.9% of complaints. So-called confidence scams accounted for 6.7% of complaints in 2007, credit-card fraud accounted for 6.3%, check fraud accounted for 6%, and computer fraud accounted for 5.3%.

Surprisingly given all the press attention they get, identity theft accounted for just 2.9% of all complaints (to the FBI, at least) and Nigerian letter fraud or 419 scams as they are also called, accounted for 1.1% of all reported online fraud, the FBI said.

The highest dollar loss per crime reported was from investment scams with a median loss of $3,547, the FBI reported. Check fraud was No. 2 at $3,000 and Nigerian letter fraud was No. 3 at $1,922, the FBI said.

Also, men were more often perpetrators and victims of online crime than women in 2007, with men accounting for 75.2% of reported perpetrators and 57.6% of all complainants, according to the report.

The median loss for men per complaint was $765 compared to women whose median loss was $552, the report said.

By far the state with the highest complainants per 100,000 people was Alaska, with 356. By comparison Colorado was No. 2 with 90 per 100,000 people, the report said.



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