The term "Internet fraud" refers generally to any type of fraud scheme that uses one or more components of the Internet - such as chat rooms, e-mail, message boards, or Web sites - to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to other connected with the scheme.

Some Common ways Internet Fraud may occur is through Internet Auctions, Non-Delivery of Merchandise, Credit Card Fraud, Investment and Business Fraud and through the Nigerian Letter Scam.

"Internet auction fraud was by far the most reported offense, comprising 44.9% of referred complaints in 2007 by the Internet Crime Complaint Center or IC3, a partnership of the FBI and the National White Collar Crime Center.

The best way to prevent Internet Fraud is to learn the danger signs of Internet Fraud.

There are many diffrent ways to commit Internet Fraud and diffrent ways to protect agains them. I will cover some of the more common ways and How not to become a Victim to those. But, In most cases the rules are the same, Always know who you are dealing with before you share any information with them. Don't be affraid to do a little research and check feedbacks on who you are dealing with and the product they are offering.

More Common ways to commit Internet Fraud and How to Prevent It:

Internet Auction Scams: Fraudulent Schemes appearing on online auction sites are the most frequently reported form of Identity Theft.

-Before you bid, contact the seller with any questions you might have.

-Review the seller's feedback

-Be Cautious when dealing with individuals outside of your country

-Ensure you understand refund, return, and warranty procedures and policies

-Determine the shipping charges before you buy

-Be wary if the seller on accepts wire transfers or cash.

-If an escrow service is used, make sure it is legitimate.

-consider insuring your purchase

-Be wary of unsolicited offers.

Business Opportunities: These Fraudulent schemes usually offer you big rewards in income for a little price for materials to get started that are never delivered.

-Be wary of inflated claims of product effectiveness.

-Be cautious of exaggerated claims of possible earnings or profits.

-Beware when money is required up front for instructions or products.

-Be leery when the job posting claims "no experience necessary".

-Do not give your social security number when first interacting with your prospective employer.

-Be cautious when dealing with individuals outside of your own country.

-Be wary when replying to unsolicited emails for work-at-home employment.

-Research the company to ensure they are authentic.

-Contact the Better Business Bureau to determine the legitimacy of the company.

Credit Card Fraud:

-Ensure a site is secure and reputable before providing your credit card number online

-Don't trust a site just because it claims to be secure.

-If purchasing merchandise, ensure it is from a reputable source.

-Promptly reconcile credit card statements to avoid unauthorized charges.

-Do your research to ensure legitimacy of the individual or company.

-Beware of providing credit card information when requested through unsolicited emails.

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