A person commits online fraud when they provide stolen or deliberately incorrect data when carrying out a transaction involving money on the internet.
This type of fraud is committed mostly through retailing websites such as eBay. If a fraudster obtains information such as another person’s credit card details and/or billing address, they can trick online retailers to deliver goods to him or her by using the other person’s funds. This is only one example of an online fraud or scam.
Another type of scam
The type of online fraud mentioned above is called purchase fraud. There are several other types of fraudulent transactions which are carried out online. An example is false advertising of vehicles. Online fraudsters may use pictures and information of cars, which they do not have, to scam potential buyers. They deprive the buyer of his money by coming up with a scenario and saying that the car will be sent to them as soon as they make the payment.
Unwary purchasers may wilfully pay and will only discover that they have been scammed when they do not hear of the false retailer again.
How to prevent online fraud
There are several ways to avoid online fraud. The simplest way is to verify all the information that someone sends you via e-mail or otherwise. Some fraudsters use e-mail and intricate scenario to scam people. When an e-mail seems too good to be true, such as a large deposit of money on your account if you follow certain steps, it is generally a scam. The second and most important rule is never to give out credit card details to online retailers, unless it is an internationally recognised website such as eBay.
Online fraud: profitable business for scammers
Online fraud is becoming a more and more lucrative business for fraudsters who use the internet. The internet acts as a barrier for these criminals in the sense that a victim never precisely knows with whom they are dealing. Precautions are to be taken when purchasing items or even downloading software online.
Lien source: http://en.wikipedia.org/wiki/Internet_fraud