While the internet is great for keeping all over the world connected it can also be used for nefarious purposes. For example, there are many different types of internet fraud that can be used to deprive people financially or assume their identity for malicious purposes. FBI.gov offers information on the different types of internet fraud, as well as what each entail.
Phishing involves the solicitation of a business or person under false pretenses. For instance, the phisher may send an email informing another party about business opportunity and subsequently request personal information (such as bank account routing or social security number). Once the information is received the person will use to access fund or participate in fraudulent behavior using the person’s identity. Phishing can also involve the creation of a fake website to build credibility.
Sensitive information can also be obtained using other methods. A data breach is just one example, wherein a person would gain access to a secure location (such as a server) and mine information directly from it. While businesses are most at risk for data breaches (especially when they hold potentially lucrative information in their computer banks), they can also occur at the personal level.
Email account compromise
Many businesses these days transfer funds over the internet, especially when working with foreign entities. An email account compromise allows an unauthorized person to access a legitimate email and request the transfer of funds. The person receiving the correspondence is bound to believe it to be legitimate, since it’s coming from an authorized source. Unlike other types of internet fraud, compromising an existing email can be a complex procedure.