Online Frauds : Trading and Sharing Frauds

Oct 22 • General • 1315 Views • No Comments on Online Frauds : Trading and Sharing Frauds

A number of recent online frauds cases demonstrate the extent to which thisĀ  medium creates potential for vast losses. Consider the scenario in which the victim’s account passwords are stolen and his accounts are misused for making fraudulent bank transfer. Another scenario is the one in which the account passwords after being stolen are misused for making unauthorized transactions that result in the losses to the victim. These scenarios tell us that one of the most common forms of security fraud on the internet involves Online sharing trading fraud(Online Frauds). These frauds are done with the motive of illegal financial gain, hatred, jealousy,revenge etc. The persons who have stolen the password and misused the account causing the miserability of the victim is liable to be punished under the section 43 and 66 of the Information technology act and section 420 and 426 of Indian Penal Code. These frauds are carried out by the use of keyloggers in the public computers or the computer of the victim, once the online banking and share trading accounts are logged in using the same computer, all the information of the victim will be e-mailed to the suspect.

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Online Scams

Tax evasion and money laundering which is said to be the other form of Internet fraud is also prevalent in today’s world. Money laundering is the generic term which is used to define by which the criminals disguise the original ownership and controls the proceeds of criminal conduct by making such proceeds appeared to have derived from legitimate source. And tax evasion is a process whereby a person pays less tax than the law mandates, through commission of fraud. Many unscrupulous businessmen and money launderers (havala operators) are using virtual as well as physical storage media for hiding information and records of their illicit business.To make this evident, consider the scenarios inn which the businessmen uses the physical storage media for hiding the information i.e. makes use of floppies, hard disks.pen drives, i-pads etc. Also suspect makes use of virtual storage media for hiding the information like making the use of e-mail accounts, online briefcases, Gspace etc. The suspects who hide the information and does not even support in the investigations are liable to be punished under the Income tax act and prevention from money laundering act. The only motive after these frauds is illicit financial gain.

To prevent one from being victimized, one must ignore mails that recommend stocks unless you know that expert, even if you know him, try to verify that its not bogus e-mail by trying contacting him over phone.

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