CONTENT

1. INTRODUCTION
2. FINDINGS
3. CONCLUSION
4. REFERENCE
5. APPENDICES
 1. INTRODUCTION

An Internet fraud (online scam) is the use of Internet services or software with Internet
access to defraud victims or to otherwise take advantage of them; for example, by stealing
personal information, which can even lead to identity theft. A very common form of
Internet fraud is the distribution of rogue security software. Internet services can be used
to present fraudulent solicitations to prospective victims, to conduct fraudulent
transactions, or to transmit the proceeds of fraud to financial institutions or to others
connected with the scheme. Research suggests that online scams can happen through
social engineering and social influence. It can occur in chat rooms, social media,
email, message boards, or on websites

Scammers want your money or personal details. Scams succeed because they look like
the real thing. People who are scammed often suffer in silence as they are too
embarrassed to speak up about their experience and seek help.

Online scams include email, internet and social media sites. The number of phishing or
fake email scams is rising. You can also be scammed via cold calls from door-to-door
salespeople or by uninvited mail, phone scams and texts.

In reality, everyone is vulnerable to scams at some stage in life. There is no one particular
profile of a victim. However, the age group most popular for scammers to target are those
with money aged over 45 years.

Scammers target lots of people, often for small amounts of money. Most scams come
from overseas. But they may pretend to be locally based, from a reputable company, bank
or government agency, or even from your friends on social media if they’ve hacked into
your account. It is very difficult to get your money back once it is sent overseas
2. FINDINGS

EFFECTS OF INTERNET FRAUD

Internet fraud causes financial loss to individuals. It involves huge sums of money being
stolen from individuals causing them a great loss. Internet fraud brings about economic
decline in a country. This is because not just individuals are defrauded in this act but
government companies as well. For example in 2006, the United States recorded a loss
of 198.4 million dollars due to internet fraud (Rosenberg, 2007) while it was reported in
the same year that the United Kingdom lost up to 150 million pounds are lost annually.
(BBC News, 2006)

As for Malaysia, a study had been conducted on this internet scams problem. The study
shows that the top three scams in Malaysia are ‘work from home’ fraud (30%) internet
auction scams; (22%) and online dating scams (20%).

The study released by Telenor Group, which Digi.Com Bhd is a part of, also revealed
the top five ways Malaysian’s avoid scam - an important way to reduce these instances
in the near future. The multi-market survey assessed 400 internet users aged 18 – 65+
in Malaysia, India, Singapore and Thailand and was conducted to provide better
understanding of the common online scamming methods. The results additionally
gathered the best prevention methods from experienced users, in order for netizens in
Malaysia to gain more insight.

In Malaysia, all of those surveyed classified themselves as internet users, averaging

nearly 10 hours per day on the web. However, online safety is a growing concern with
more than half of those surveyed (54%) stating they are ‘very concerned’ with online
scams—more than those equally concerned with mugging (45%) and stalking (42%).

According to a statement by Telenor.

From all the regions surveyed, Malaysia was the country most vulnerable to internet
scams, with 46% of respondents saying they had been victims to scam followed only by
Thailand at 43%. The study found that 1-in-5 people have been victims to both internet
auction scams and online dating scams, and a 1-in-10 had their Facebook hacked. A
further 46% of Malaysian respondents saying they know a friend or family member who
has been scammed online. Those who have been subject to an online scam in Malaysia,
Telenor said 6-in-10 have lost money, with the average financial loss per person
equivalent to RM7, 050 ($1,700 US$).

That is a huge amount indeed. However, in comparison to other surveyed nations, the
loss was much smaller than its neighboring countries. The regional average for those
who incurred financial loss is equivalent to RM41, 870 ($9,900 US$). Despite the figures,
Malaysians continue to recognize the benefits of having the internet readily available
with 90% of Malaysian netizens agreeing that the internet has improved their lives and
81% attribute strengthened relationships with friends and family to the net.

“This survey is a good barometer on internet scams in Malaysia, and areas that should
be addressed. We hope the findings from this digital consumer study will encourage all
Malaysians to be proactive in educating themselves to stay safe online, so they can enjoy
the internet’s opportunities,” Telenor Group head of social responsibility Ola Jo Tandre
said.

According to Telenor, the largest percentage of Malaysian scam victims had fallen for
the ‘work from home’ fraud - a scam whereby users are either fooled into paying
someone online to help them start a business, or undertake work but never receive
payment. Almost a quarter had experienced internet auction fraud, where they purchase
an item online and never receive it. And finally, Malaysians were also victims of online
dating scams, where a scammer creates a fake profile on an online dating site to elicit
money.
WAYS TO PREVENT

Indeed, internets scams leads to major problems among the Malaysian. Well, despite all
of those problem. There are still ways on how to prevent them. Here is a list on how we
can prevent internet scams.

1. Delete suspicious and untrustworthy emails.

- If still in doubt, make a phone call to the financial institution to verify the email is
legit or not.

2. Ignore advertisements that appear "too good to be true.

- There is no kind of free giveaway that involves a large sum of money or valuable
stuffs.

3. Update your anti-malware software.

- use a specialized security program.

4. Protect your privacy and security.

- Defend yourself against scammers, hackers and identity thieves by protecting your
information and your computer while online.

5. Do online research about scams.

- Learn how to recognise scams and what you can do to avoid them.

6. Share knowledge and presentative tips with friends and family through social media.
- Encourage all friends and family to be proactive in educating themselves to stay
safe online and to be aware of potential threats besides to openly talk with friends and
family about online welfare.

7. Never send your bank account information over the Internet

- People can access into your account and misused it.

8. Trust your instincts.

9. Learn from the stories of other victims.

10. Protect your personal information.

- Do not provide it in response to an e-mail, a pop-up, or a website you've linked to
from an e-mail or web page.

11. For disaster relief scams, if your request for donation came via email, your best bet
is to contact the recognized charitable organization directly by phone or their websites.

12. For travel scams, your best strategy is to book your trip in person, through a
reputable travel agency or proven legitimate online service.

13. Before entering into transactions over the Internet, you must know your seller by do
some research.
- Check if the website or online auction site has a refund or returns policy, and that
their policies sound fair. The better online shopping and auction sites have detailed
complaint or dispute handling processes in case something goes wrong.

14. Make a report if you believe you have been a victim of Internet scams.
- Complaints filed via IC3 (Internet Crime Complaint Center) website are processed
and may be referred to federal, state, local or international law enforcement or
regulatory agencies for possible investigation.
TYPES OF INTERNET FRAUD

Internet Auction Fraud and Non-Delivery of Merchandise

Internet auction fraud is a prevalent scam that targets consumers on auction websites
such as eBay. Typically, this scam will consist of someone posting a product for sale on
an auction site to "sell" the product to the highest bidder. The product, however, is either
nonexistent or not the product described on the auction site. Scammers will try to collect
the full funds from the winning bidder before shipping the product. This is typically
facilitated via a money wire transfer, and the seller will ask for funds to be sent to a third
party. In the instances where scammers ship a product to the buyer, the scammer will
send a product of vastly lower value than what was purchased. The shipment will need
to be signed for, which obligates the buyer to pay in full for the product, even though it
isn't the promised item. This is known as the Non-Delivery of Merchandise scam.

Spam and Identity Theft

Spam is implicated in a common form of fraud, in which bulk emails are dispersed to
millions of email addresses in an effort to corrupt people's computers, steal identities or
pull unknowing individuals into paying for fraudulent products or services. A spam
message will offer any number of false dealings to recipients. Popular offerings including
low-interest loans, free credit report checks, sweepstake winnings and relationships with
"local" singles. These types of scams require people to open a message and click on a
link. This opens up the computer to a virus, worm or other "bug" that will corrupt the
computer. In cases of identity theft, the bug will attempt to retrieve passwords, Social
Security numbers, credit card information, home addresses and telephone numbers.
Other bugs will embed themselves in the computer's registry and damage system
performance.

Credit Card Fraud

This scam requests that a consumer registers or inputs credit card information on a
fraudulent website. The site may sell products or services. When a reputable, trustworthy
vendor asks for credit card information, it won't save the data without user permission and
will take steps to keep user information safe. Fraudulent sites will ask for the same
information as does a reputable site, but will steal the information and make purchases
using the data the credit card owner gave to the website.

Forms of Investment Fraud

Various investment schemes typically target stock investors, trying to steal money and
investors' identities. Some of these scams will come in the form of an online newsletter.
In these newsletters, frauds will offer inside information on stocks, for a fee, and offer
false data instead of real information. Online bulletin boards have also become a hotbed
of fraudulent activity. Companies often use online bulletin boards to publish information;
however, a bogus board will release disinformation. A pump and dump scheme can start
with a fraudulent newsletter or bulletin board where secret or private information is
offered. The object of this scheme is to alter stock values. After effectively hindering a
stock, the schemer will sell his or her own stock in a timely fashion for personal gain.
3. CONCLUSION

All of this scams leads to financial losses from a few dollars to life savings and even the
family home. Emotional damage to the victims and their families, eg adverse effects on
their mental health, work capacity, relationships and family life. Here are many effects,
ways to prevent and types of internet scams.

The effects of internet scams in social media is leads to financial losses from a few money to
life savings and even the family home. Emotional damage to the victims and their family.

The ways to prevent internet scams is to avoid ourselves from being of internet
scams,governmet,some internet parties,parents,family,friends and self regulation is the
essential approach.

The types of internet scams can understand how to recognize the characteristics of internet
scams in social media for example spam,credits card scams and others. So it can avoid to be
their preys.

So here we can conclude , we totally disagree of internet scams in social media . Besides, to
make sure to decrease of internet scams , we needs focus at authority. The authority needs
prepare mechanisms such as the laws to be able to provide some assistance.But care needs to
be taken that law is not to used as an excuse for inadequate business practices. It would be
sensible to ensure that a duty of care to implement best practices is legislation to expose who
have failed to protect themselves, their shareholders of their customers. The introduction of new
technologies place responsibilities upon their implementers . The developers have
areaponsibilities to get it right while the implementers have a responsibility to deal with its social
and cultural dimensions and cannot stand back and ignore these.
4. REFERENCE

World Wide Web

- http://www.thestar.com.my/business/business-news/2016/03/11/malaysia-is-the-
most-vulnerable-country-to-internet-scams-in-this-region/
- http://www.thestar.com.my/news/nation/2016/03/26/rm1bil-lost-to-online-
scammers-love-is-a-pain-for-victims-romanced-by-conmen/
- https://www.consumerprotection.govt.nz/get-guidance/scams-and-online-
safety/scamwatch/scams/
- https://en.wikipedia.org/wiki/Internet_fraud
5. APPENDICES