Arguably, online crimes and fraud are tremendously in the rise. Since the beginning of 21st century, many issues related to internet scams and frauds have been reported. In most cases, online crimes and fraud could be the most complex, and rarely discovered. Online fraud and crimes, has cost many nations billions on money and resources. Due to improvement of technology, online crimes continue to be sophisticated. Certainly, fraudsters nowadays employ high-tech minds, of which they commit online crime and going undetected. Most of the online crimes in the world today includes online gambling, financial crimes, forgery, cyber defamation, as well as pornography. Some other crimes that could be executed online are logic bombs, virus attacks, hacking, internet time theft, salami attacks, as well as e-mail bombings.
The Internet is progressing swiftly; which also brings Internet fraud. With the arrival of the computer technology, nations have turned out to be connected to the world. This volatile expansion of technology has brought us an innovative form of getting information and conversing (Hess, 2011). Managing and controlling the content of computer systems belongs to nobody and for this reason, defrauding populace has grown to be a moderately easy practice for immoral entrepreneurs. Everyone is able to generate a website just for fraud actions. Actions can be enforced to assist in thwarting these tribulations; however, it is hard to completely manage it.
As a matter of fact, online crimes are mostly committed against firms, properties, companies, government as well as individuals. Online crime is basically broad in nature, and their effect varies to the highest degree depending on the type of crime. Online fraud is one of the most known and pronounced type of online crime (Consumer, 2004). These online frauds include purchase fraud, counterfeit money orders, online automotive fraud, PayPal fraud, call tag fraud, dating fraud, information leakage, as well as frauds involving online money transfer. Undeniably, billions of money have been lost trough online frauds. For example, in United States a total loss of $560m on fraud was reported in the year 2009, the most significant cause of this loss was fraud involving non-delivery of goods.
Conversably, there are a variety of cases of online fraud, which has caused immense and unbelievable loss of money, as well as leaking of top secret information. The case of Kerviel Jerome, an employee in SGBF (Societe Generale Bank in France), was involved in online fraud, where the bank lost a tremendous amount of money that affected the performance and continuity of the bank. Reports asserted that Kerviel Jerome was purportedly part of an illicit trading scandal which amounted to approximately €50 billi0n. The fraud caused Société Générale a loss of €4.9 billion; the bank was among the biggest banks in the republic of France, ranked second. As a matter of fact, the online fraud was as a result of inefficiency in the banks internal control systems. Moreover, the online fraud involved computer hacking, trust infringement, as well as unauthorized business activities (Computer Security Policy and Research Institute, 2004).
Actually, during this fraud Kerviel Jerome was hauled up for creating an immense loses by a lone unauthorized trader in the entire financial history. In 2007, he perhaps authorized illegal trade of value € 30 billion on features of European stock market, and won € 1.4 billion by the end of that year. Camouflaging the magnitude of his know-how, earnings, as well as fabricated trades, he went further in 2008 to made more frauds on trades (Denning, 2004)
Netcrime is a crime involving the exploitation of the Internet and network. Cybercrimes are a crime committed against individuals or groups to destroy their reputation or to harm them either physically or mentally either directly or indirectly. This is done by using modern telecommunication such as emails, chat rooms and mobile phones. These crimes may threaten a nation’s security and financial health. Generally, computer crime encompasses a wide aspect; however, it may be put into two groupings: crimes pertaining to computers directly and those crimes brought by computer networks and devices (Crane, 2004). The main computer fraud is any misrepresentation of information intended to let another to do something, which causes harm or loss. Other fraudulent activities may be carried out using online systems, including identity theft, bank fraud, extortion, as well as theft of fundamental data. Harassment can also be carried out as one of the crimes. This can involve stalking, bullying, harassment by internet, hate crime and online predator.
Committing online crime can lead to sentence and punishments. For example, in the case of Neil Scott Kramer vs United States in US, Kramer was served the kind of sentence according to the Sentencing Guidelines Manual §2G1.3(b)(3)for use of a cell phone to induce or facilitate the minor to engage in sexual conduct. Drug traffickers are using the Internet to transact their illegal substances business through encrypted mail, as well as Internet Technology. Some use the courier Web sites to track unlawful packages of pills. There is a rise in internet drug trades attributed mainly by lack of face-to-face communication. These facilitate more people to comfortably purchase the drugs (Crane, 2004).
In the contemporary society, online frauds are mostly tricky and convincing. When individuals and organization see, it cannot be realized. Everyone using internet should be aware of fraudsters who come in various ways. Some of the online frauds in the worlds today include auction fraud, phishing scam, Nigerian 419 letter, as well as the unanimous congratulation. The online frauds take place each an everyday and led to unintended consequences. Furthermore, low barriers and anonymity to exit and enter internet is one main characteristic that boosts online fraud and crime. Perpetrators of online frauds have the opportunity to assume multiple and false identification, transact frauds, and create illusory information (Hess, 2011).
As an organization, it is advisable to always have or create a team of specialists who are responsible in detecting fraud. The well trained team will raise an alert in case of any abnormalities in transactions. The investigating team should use legal procedures during the process. The team should use non-networked computers so that they can implement changes in fraud mechanisms. Additionally, proper tools and software’s should be installed in the organization (Siegel, 2011). The fraudsters are very clever, and will always change their tactics; hence, the investigative team should be updating online software intended to detect frauds.
Information is always important in preventing online fraud. Merchants and organizations should have valid and up to date sequence on fraud case. Elements of transitions should be put into analysis and investigation so as to provide depthless. Other strategies include investigating reverse phone lookups, install Address Verification Service, as well as employing qualified personal (Computer Security Policy and Research Institute, 2004). Fixing online fraud is hard, this is because the security installed in internet is always weak. In fact, connecting to an insecure computer will always expose its user to online frauds.
Las enforcing organization are been exposed by online fraudsters, For example, some of the secrets of a nation are exposed due to technicality of the crime. Online fraudsters, does not only affect only the victims, but also the law enforcing organizations. They must train it personnel on online forensics and science in order to be in a position to detect online fraud (Hess, 2011).
Online fraud are carried out by various personnel, other are even the employees of the organization. Hence, ethical issues and code of conduct should be observed in the organization For example, Jerome is just but an example of employees who fraud their organization. Conversably, the law implementing bodies should set policies to governing and punish fraudsters in the world. Online fraud has cost individuals, organizations, and government billions of money and property; hence, the stakeholders should utilize technological advancement it preventing and detecting online frauds.
Computer Security Policy and Research Institute. CSPRI. (2004). About Us - Mission. Retrieved
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Crane, B. (2004). Personal Interview. London: Springer.
Hess, L. (2011). Criminal Justice in Action: The Core. London: Wadsworth.
Siegel, l. (2011). Criminology. New York: Wiley.
