SCAM FRAUD

Prepared by

S.VINOTH MARTIN
Final - IT
AGENDA

1.DEFINITION

2.Types of e-mai scams

3. Examples

4.How to report or avoid scams

 SCAM
we'll define it as obtaining money by means of
deception including fake personalities, fake
photos, fake template letters, non-existent
addresses and phone numbers, forged
documents.

Specifically we are concerned about those

people (men and women) who make this their
practice, who are in the business of scamming
men.
 TYPES OF E-MAIL SCAM
1.Advance free fraud

2. Lottery Scams

3. Phishing

5. Employment Scams
 1.Advance free fraud

1.Advance Fee Fraud : A 'nominal' payment is required to 'release'

some much larger amount which is held by a third party. Any
transaction that promises a huge return for a relatively small fee is
probably an Advance Fee Fraud, also known as 'Nigerian' or '419
Fraud'.
There is no 'millions', Mrs Abacha doesnt have the money either.

2.The perpetrators of Advance Fee Fraud (AFF), known

internationally as "419" fraud after the section of the Nigerian penal
code which addresses fraud schemes, are often very creative and
innovative.
 How does it work?
1.The criminals obtain the names of potential victims from a variety of
sources including trade journals, professional directories, newspapers,
websites and commercial libraries.

2. The sender declares that he is a senior civil servant in one of the

Nigerian Ministries, usually the Nigerian National Petroleum Corporation
(NNPC).

3. The letters refer to investigations of previous contracts awarded by prior

regimes alleging that many contracts were over invoiced.

4. Rather than return the money to the government, they desire to transfer
the money to a foreign account. The sums to be transferred average
between $10,000,000 to $60,000,000 and the recipient is usually offered a
commission up to 30 percent for assisting in the transfer.
 Contd……
5.The goal of the criminal is to delude the target into thinking that he is
being drawn into a very lucrative, albeit questionable, arrangement.
 Top 10 warning signs of a 419
1. A promise to share or transfer millions of dollars to you for your help or participation.

2. The e-mail or correspondence is marked "urgent," "top secret" or "highly confidential" and
demands you act immediately.

3. The sender claims to be an exiled Dignitary, Cabinet Member, General, CEO, CFO, lawyer,
doctor or the heir of some other important person or top official to gain your confidence.

4. Claims to have obtained your e-mail address "during a personal research on the Internet" or
from an unidentified "friend who was once on diplomatic mission.

5. The proposal contains a seemingly unlikely situation.

6. Claims to have smuggled the funds, jewels or precious metals out of their native country in a
"diplomatic package" or "consignment" unbeknownst to their unstable or corrupt
government.

7. Seeks an "honest foreign partner" to help with them with their crisis situation.

8. States they are working with an unidentfied "Security Company" or the "Central Bank of
Nigeria“.
 Contd..
9. Requests personal information from you, i.e. your full name, bank account
information and routing numbers, home or business telephone and facsimile
numbers, or a copy of your letterhead.

10.The solicitation or contact requires you to advance money "up front" to secure
your participation in the transaction.
 2.Lottery Scams (online Lottery/Lotto
Scams)

1. Victims are commonly notified by email (also by conventional mail or fax) that
they have won a prize in a foreign lottery or sweepstakes.

2.The scam is usually based around the demand for fees (taxes, customs duty,
shipping, courier etc) that need to be paid before the winnings are made available.
Requests to 'take the fees out of the winnings' always get the same response - "We
cannot do that!".

3. Email lottery scams can often be identified simply by the fact that the response
email address is an obvious free email account (yahoo.com, netscape.net,
hotmail.com etc).
 Contd….
4.For years, scam operators have used the telephone, direct mail and now
email to entice U.S. consumers into buying chances in supposedly high-
stakes foreign lotteries.

5. Scam operators may never buy the lottery tickets on your behalf or may
buy some tickets, but keep the "winnings" for themselves. If you're thinking
about responding to a foreign lottery.
 3.Phishing/Identity Theft
Phishing is an Internet scam that uses spam, web pages, chat rooms, instant
messaging or pop-up messages to deceive you into disclosing your credit
card numbers, bank account information, Social Security number,
passwords, or other sensitive information.

Phishing attacks use 'spoofed' e-mails and fraudulent websites designed to

fool recipients into divulging personal financial data.

By hijacking the trusted brands of well-known banks, online retailers and

credit card companies, phishers are able to convince up to 5% of recipients
to respond to them.
Be suspicious of any email with urgent requests for personal financial
information

 unless the email is digitally signed, you can't be sure it wasn't

forged or 'spoofed' .

 phishers typically include upsetting or exciting (but false)

statements in their emails to get people to react immediately .

 they typically ask for information such as usernames, passwords,

credit card numbers, social security numbers, etc.

 phisher emails are typically NOT personalized, while valid

messages from your bank or e-commerce company generally are.
 How to avoid it
EarthLink Scam Blocker is part of a free browser toolbar that alerts
you before you visit a page that's on Earthlink's list of known
fraudulent phisher Web sites.

The FireFox Web browser has in-built technology to alert you

when you surf to a page that is insecure or known to be unsafe.

Cloudmark and Qurb both also have commercial toolbars that

perform the same service.
 4.Employment Scams (Job Scams)
Employment Scams (Job Scams) are just one more way in which
scammers separate hard-working people from their money.

Most Internet jobs are advertised as Work From Home or

Work At Home (WAH) and are intended to target home
makers, retired people, disabled people, students and other
people who just want to make a little extra cash, while staying at
home.

Transaction Processing Assistant, Reshipping Agent, Goods

Forwarding Executive, Processing Online Auction Listings
are all job descriptions that are being used.
 Tips to identify
1. Lots of Graphics, pictures of money, cars, holiday destinations etc.

2. Shouty text, Imperitives, exclamation marks, colored, large pointsize text.

3. Very Very long pages

4. They almost always tell you that the jobs are 'scam-free', or 'totaly legitimate'.

5. Extremely low qualifications required, almost always demand you have

access to an Internet connected computer.

6. Payment of a fee may be required for 'training materials' or some magic list
example
Reporting Scams - Who deals with
what?

1.Federal Trade Commission

2. The US Secret Service

3. US Postal Inspection Service

4. Federal Bureau of Investigation

5.Indian Cyber Crime -1800 209 6789