7 biggest internet frauds of all time • LegalScoops
Online fraud is on the rise, and everyone is a target! Internet fraud and scams are not new; they have been around since we started using the Internet. Let’s take a look at the seven biggest internet frauds of all time, in no particular order:
1. Online Dating Scam
Online dating is undeniably popular, and that is why criminals target legitimate users through fake profiles and attempt to get money from them.
One of the biggest online dating scams happened in 2013. A lonely retired Canadian lost her savings of $ 1.3 million to a companion she met online. She hooked up with him on an online dating site, and he got money, gifts, and other favors from her. She voluntarily gave him up the money as he fabricated his personality and his legitimate stories.
Usually, this scammer asks for financial help from his victim and tries to get the most out of it. Scammers’ online dating profiles are usually restricted or removed by dating apps. To prevent the dating app from deleting them, these scammers use compelling stories to trick their victims into continuing to communicate with them from another app.
2. Global Fraud Ring
In 2010, the United States Federal Court handed down one of its toughest sentences for a computer crime. Hacker Albert Gonzalez was sentenced to 20 years in prison after being convicted of running a notorious fraud ring that hacked retail store accounts, stealing hundreds of millions of credit cards. Gonzalez, aka SoupNazi, raised $ 2.8 million from the scam that reportedly cost companies between $ 200 and $ 1 billion in damages. He used that money for a lavish lifestyle.
3. Cyber credit card fraud
After many years of ongoing investigations, the FBI finally arrested five men in July 2013 for hacking into global organizations. This is the largest cyber case ever filed in US history, and it soon became apparent that these cybercriminals also had ties to Gonzalez, aka SoupNazi.
They have flown the Nasdaq, Visa, Citibank, JetBlue Airways and many other global giants. In addition, they stole 160 million credit cards and the committed credit card fraud totaled over $ 300 million. Using malware installed on Nasdaq’s servers, hackers could disable antivirus software on the computers of their unsuspecting victims. Then after stealing and storing the data, they sold it for a profit.
4. ATM hackers
Credit card processors and cardholders have become victims of fraudsters who committed an ATM scam in 2013. Hackers stole credit card information from countless people, then stole 45 million dollars at ATMs around the world.
Eight people from New York and 2 Dutch citizens were arrested as a result of the attack. Weeks later, another operation followed and another group, which stole $ 40 million by targeting another credit card processing company, was arrested.
5. Credit cards and fake identities
Many international internet fraudsters target credit cards. For example, in February 2013, the FBI arrested 18 members of another organization who managed to commit a scam that earned them $ 200 million. They did this by obtaining 7,000 fake IDs to steal credit cards. Then they used the cards to “borrow” huge amounts by providing false information to the credit bureaus, inflating authorized credit.
Some scams are difficult to assess. Here are two ongoing scams that are scamming people, and everyone should be aware:
6. Email phishing
In a relatively cheap but ubiquitous form of fraud, the phishing email directs its victims to a scam site that looks like a real page. Here, victims enter their credentials, which makes it easy for hackers to commit fraud.
7. Tech support scams
In recent years, tech support scams have also been used to defraud people for large sums of money. With this pattern, someone is calling claiming to be from a business, software vendor, or bank. They convince the person that their computer is infected with malware and ask them to allow them to control the computer to fix the problem remotely. This will allow them to hack the system, steal data, or install ransomware. Then either they demand payment for their services or they sell some unnecessary form of cybersecurity to their victims.
Email scams are the most common type of fraud and are used by “phishing” hackers.
Varies by state although there are also federal laws
Online scams are a type of fraud, and significant penalties, as well as jail time, are therefore possible.
The goal is to steal identities or earn money or property (including access to networks). Internet fraud is an incredibly serious crime and can result in prison sentences and hefty fines. The police and the courts take this kind of crime seriously.
Legal Scoops editor-in-chief Jacob Maslow founded several online newspapers, including the Daily Forex Report and the Conservative Free Press.