| 1999 Top 10 Frauds | 2000 Top 10 Frauds | ||
| Online Auctions | 87% | Online Auctions | 78% |
| General Merchandise Sales | 7% | General Merchandise Sales | 10% |
| Internet Access Services | 2% | Internet Access Services | 3% |
| Computer Equipment/Soft. | 1% | Work-At-Home | 3% |
| Work-At-Home | 1% | Advance Fee Loans | 2% |
| Advance Fee Loans | .2% | Computer Equipment/Soft. | 1% |
| Magazine Sales | .2% | Nigerian Money Offers | 1% |
| Information Adult Services | .2% | Information Adult Services | 1% |
| Travel/Vacations | .1% | Credit Card Offers | .5% |
| Multilevel Market/Pyramids | .1% | Travel/Vacations | .5% |
Methods of Contact
Web sites are 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 newsgroups:
| 1999 Solicitation Method | 2000 Solicitation Method | ||
| Web Sites | 90% | Web Sites | 82% |
| 9% | 12% | ||
| Newsgroups | .5% | Newsgroups | 4% |
Ages of Consumers
| Under 20 | 2% |
| 20-29 | 20% |
| 30-39 | 28% |
| 40-49 | 29% |
| 50-59 | 15% |
| 60-69 | 5% |
| 70-79 | 1% |
| 80+ | 0% |
Money Lost
The amount of money consumers are losing to Internet fraud, like telemarketing fraud, is increasing. Losses overall are $3,387,530. The average loss per person rose from $310 in 1999 to $427 in 2000.
| 1999 Top 5 Payment | 2000 Top 5 Payment | ||
| Money Order | 46% | Money Order | 43% |
| Check | 39% | Check | 30% |
| Credit Card | 5% | Credit Card | 11% |
| Cashier's Check | 5% | Cashier's Check | 6% |
| Cash | 1% | Cash | 3% |
There are dramatic differences in methods of payment for each of the top Internet fraud categories.
| Internet Fraud | Method of Payment | |
| Online Auctions | Money Order | 48% |
| Check | 32% | |
| Cashier's Check | 7% | |
| Credit Card | 6% | |
| Cash | 3% | |
| General Merchandise Sales | Credit Card | 28% |
| Money Order | 25% | |
| Check | 24% | |
| Cashier's Check | 5% | |
| Debit Card | 5% | |
| Internet Access Services | Credit Card | 37% |
| Telephone Bill | 15% | |
| Check | 14% | |
| Bank Account Debit | 13% | |
| Debit Card | 9% | |
| Work-At-Home | Check | 40% |
| Money Order | 23% | |
| Credit Card | 19% | |
| Bank Account Debit | 9% | |
| Cash | 3% | |
| Computer Equipment Software | Money Order | 27% |
| Credit Card | 24% | |
| Check | 22% | |
| Wire | 13% | |
| Cashier's Check | 8% | |
Location of Companies
Because the Internet has no geographic boundaries, cross-border fraud has the potential to explode, especially if more consumers pay online rather than by sending checks or money orders. The number of Internet fraud complaints against Canadian companies is 3.5% and complaints against companies in other foreign countries have risen from 1 percent in 1999 to 2.3 percent in 2000.
For additional information, check out press material at the National Consumers League Web site.
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