It happens everyday and police agencies believe it often goes unreported.
Internet spam sent to e-mail users, which often include scams to divulge personal information or request money, shows no signs of stopping. Spam, which is legal in the United States, often advertises pornography, prescription drugs and fake diplomas.
The growing popularity of auction Web sites also provides a new means of Internet crime. Statewide victims have reported losing thousands of dollars to Internet crimes such as auctions and check fraud.
More than half of the 2005 Internet crimes reported to the Internet Crime Complaint Center from Oregon were related to an auction scam, according to the center.
Oregon ranks seventh in the nation for the most reported Internet crime complaints per 100,000 people, according to the IC3. In 2005, the center received 2,767 complaints from Oregon, up from 961 in 2004. Those who filed a check fraud complaint lost an average of $4,500.
One of the most common scams is known as the Nigerian Letter, an advance fee fraud, in which someone sends an e-mail claiming to need help getting money out of Nigeria.
“They’ll say they need a trusted partner, or give some sob story, saying millions of dollars are locked up in a country, usually somewhere in western Africa,” Eugene police detective Steve Williams said. “They’ll want you to send some money here and there with the promise of millions of dollars.”
Williams, who investigates financial fraud at the Eugene Police Department, also heads Internet fraud cases and sometimes tears apart computers and searches for data. EPD, however, doesn’t typically head Internet crime cases.
“It’s tough for local law enforcement to deal with Internet fraud because you have suspects and victims scattered all over the world,” Williams said. He added that spammers are often based in Canada and Nigeria and those based in Nigeria use the money for civil wars, guns and terrorism.
Oregon Attorney General spokeswoman Jan Margosian said that it’s difficult to prosecute scammers because laws are different in every country and state.
She said consumers are protected in Oregon by the Unlawful Trade Practices Act, which says that a business can be fined up to $25,000 for each violation that misleads consumers when money is exchanged.
Williams said that EPD works with other agencies, including the federal government. The department will also report Internet crimes to the state Department of Justice.
Williams couldn’t say whether he’s seen an increase or decrease in Internet crime.
“It’s an ongoing thing, and a lot of it depends on reporting,” he said. “Some cases aren’t reported because people are embarrassed.”
Williams said that Internet scams are an extension of old crimes but with new technology. Scammers used to send flyers to random fax numbers. Now, spammers will purchase e-mail addresses from Web sites that require registration or a computer program will generate random e-mails with a specific domain.
“Some of them actually get through, some don’t,” Williams said.
He said that sometimes when an e-mail user responds to spam to decline further contact, spammers will often send even more spam because they know the e-mail address is live.
The Internet Web sites like eBay and Craigslist have allowed scammers to spread their message to more people.
“Instead of having to try to get one person, scammers can shop thousands or even millions in one place,” Williams said. “As new technology and services come online, these people adapt. They prey on (the) greed and gullibility of every person.”
Margosian said a scam involving an auction Web site will look like this:
? A scammer will contact a seller and offer much more than the asking price, saying it pays for shipping costs;
? The seller and potential victim receives a fake check and deposits it at a bank, while the scammer tells the seller to wire back the extra money; and
? After the money is wired, the bank informs the victim that the check is fake. Meanwhile the scammer has the victim’s money.
Margosian said that the Uniform Commercial Code holds the victim responsible and the bank won’t pay for the lost money.
“If you endorse a check, you are guaranteeing the bank that it’s legit,” she said.
The CAN-SPAM Act of 2003 allows spam if the e-mail contains a truthful subject line and has no false information; otherwise, spam is illegal. Last month, a California man was charged and convicted under the act. He sent thousands of e-mails to America Online users who appeared to be from AOL’s billing department asking for personal information, which would be used for fraudulent purchases.
Williams said to use common sense when dealing with Internet spam and scams.
“If it sounds too good to be true, it is,” he said. “If it’s not reasonable, then don’t do it.”
When purchasing items from buy-and-sell and auction Web sites, he recommended using PayPal or other verifiable means.
Margosian recommended that students report all scams.
“They might have the beginnings of a huge scam,” she said.
Contact the crime, health and safety reporter at [email protected]
REPORT INTERNET SCAMS
Report it to the Oregon Attorney General’s Office at www.doj.state.or.us or to the Internet Crime Complaint Center at http://www.ic3.gov.