Top Ten Internet Frauds
Scams perpetrated on online auctions remain the top Internet fraud for 2001, though down 8 percent from last year. The fasted growing online scam is Nigerian money offers, up 900 percent in 2001.
|
Top Scams |
2001 |
2000 |
1999 |
| Online Auctions | 70% | 78% | 87% |
| General Merchandise Sales | 9% | 10% | 7% |
| Nigerian Money Offers | 9% | 1% | N/A |
| Computer Equipment/Soft. | 2% | 1% | 1.3% |
| Internet Access Services | 2% | 3% | 2% |
| Information Adult Services | 2% | 1% | .2% |
| Work-At-Home | 2% | 3% | .9% |
| Advance Fee Loans | 1% | 2% | .2% |
| Credit Card Offers | .5% | .5% | N/A |
| Business Opportunities/Franchises | .5% | N/A | N/A |
Methods of Contact
Web sites are still the most common way that consumers are solicited for fraudulent Internet offers, but the statistics reveal an increase
in the number of initial contacts made by con artists in emails. In
some of the most frequently reported Internet frauds, many of the offers came by
email: 97 percent of Nigerian money offers; 24 percent of work-at-home schemes;
28 percent of bogus credit card offers; and 36 percent of fraudulent business
opportunities and franchises.
Money Lost
The amount of money consumers are losing to Internet fraud is increasing. Losses overall are $6,152,070, up from $3,387,530 in 2000.
The average loss per person rose from $427 in 2000 to $518 in 2001.
There are significant differences in the per-person averages for each category.
|
Top Scams |
2001 |
2000 |
1999 |
| Online Auctions | $411 | $326 | $284 |
| General Merchandise Sales | $730 | $784 | $465 |
| Nigerian Money Offers | $5,957 | $3,000 | $0 |
| Computer Equipment/Soft. | $1,048 | $724 | $580 |
| Internet Access Services | $535 | $631 | $438 |
| Information Adult Services | $209 | $310 | N/A |
| Work-At-Home | $121 | $145 | $383 |
| Advance Fee Loans | $1,121 | $881 | N/A |
| Credit Card Offers | $309 | $138 | N/A |
| Business Opportunities/Franchises | $10,147 | N/A | N/A |
Payment Methods
Though consumers are using their credit cards more online, money orders are still the most common way Internet fraud victims paid for their products or services. Some categories showed a large increase in credit cards for payments, while others such as Nigerian money offers continued to show bank account debits and wire services as the most common way to pay.
| 2001 |
2000 |
||||
| Online Auctions | Online Auctions | ||||
| Money Order |
34% |
Money Order | 48% | ||
| Credit Card | 27% | Credit Card | 6% | ||
| Check | 18% | Check | 32% | ||
| Debit Card | 6% | Debit Card | 1% | ||
| Bank Debit | 5% | Bank Debit | 1% | ||
| Cashier's Check | 4% | Cashier's Check | 7% | ||
| Cash | 4% | Cash | 3% | ||
| Wire | 2% |
Wire |
1% | ||
| General Merchandise Sales |
General Merchandise Sales |
||||
| Credit Card | 41% | Credit Card | 28% | ||
| Money Order | 20% | Money Order | 25% | ||
| Check | 15% | Check | 24% | ||
| Debit Card | 7% | Debit Card | 5% | ||
| Bank Debit | 5% | Bank Debit | 2% | ||
| Wire | 4% | Wire | 4% | ||
| Cashier's Check | 3% | Cashier's Check | 5% | ||
| Cash | 3% | Cash | 3% | ||
| Nigerian Money Offers | Nigerian Money Offers | ||||
| Bank Debit | 70% | Bank Debit | 100% | ||
| Wire | 20% | Wire | 0% | ||
| Credit Card | 10% | Credit Card | 0% | ||
| Computer Equipment Software | Computer Equipment Software | ||||
| Credit Card | 38% | Credit Card | 27% | ||
| Money Order | 18% | Money Order | 24% | ||
| Check | 14% | Check | 22% | ||
| Debit Card | 9% | Debit Card | 0% | ||
| Bank Debit | 7% | Bank Debit | 5% | ||
| Wire | 6% | Wire | 13% | ||
| Cashier's Check | 5% | Cashier's Check | 8% | ||
| Internet Access Services | Internet Access Services | ||||
| Credit Card | 50% | Credit Card | 37% | ||
| Bank Debit | 19% | Bank Debit | 13% | ||
| Debit Card | 9% | Debit Card | 9% | ||
| Check | 9% | Check | 14% | ||
| Money Order | 5% | Money Order | 7% | ||
| Telephone Bill | 4% | Telephone Bill | 15% | ||
| Wire | 2% | Wire | 2% | ||
Ages of Consumers
Over half of Internet fraud victims in 2001 were under 40, which is consistent with the average age of all Internet users (30).
|
Ages |
2001 |
2000 |
1999 |
| Under 20 | 4% | 2% | 2.3% |
| 20-29 | 26% | 20% | 19% |
| 30-39 | 28% | 28% | 29% |
| 40-49 | 24% | 29% | 28% |
| 50-59 | 13% | 15% | 15% |
| 60-69 | 4% | 6% | 4% |
| 70+ | 1% | 1% | 0.7% |
For additional information, visit www.nclnet.org/shoppingonline.
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