Internet Fraud

The term "Internet fraud" refers generally to any type of fraud scheme that uses one or more components of the Internet - such as chat rooms, e-mail, message boards, or Web sites - to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to other connected with the scheme.

The internet is a cheap and easy way for fraudsters to con people out of money. This fact sheet tells you about some of the most common types of internet fraud (scams). Read on to find out how to spot internet fraud and what you can do about it.

Phishing

Phishing is where you get emails pretending to come from a genuine company. They often look like they come from your bank. This is a scam to trick you into giving personal information that can be used for fraud. If you get an email and you're asked to type in a password or type in personal details, this is probably a scam as banks never ask you to do this.

To avoid phishing scams, log into your online accounts regularly – the more often you check your accounts, the quicker you'll spot any problems. If you check your bank and credit card statements regularly, you'll spot fraud more quickly.

Identity fraud

Identity fraud is where someone steals your personal details to con you out of money. It can happen when you're not using the internet, for example, if you lose important documents such as your passport or driving license. But if you aren't careful with your personal details when you go online, you could easily become the victim of identity fraud. For example, a fraudster could get hold of your credit card details and use them to buy things over the internet or withdraw money from your account. Or they could get hold of your address and bank details and use them to borrow money.

Lottery scams

Lottery scams are very common on the internet. Even though you may never have entered a lottery, you get an email to say you've won a prize. But then you're told have to send money to claim the prize. Or you're asked to ring a premium rate number which is very expensive. All UK premium rate numbers start with 090. Or you're asked for your bank details so the prize money can be paid in. Don't reply to these emails. Report them to the police if you lose money.

Pyramid schemes

Pyramid schemes (sometimes called affinity schemes) promise you money in return for the number of people you recruit to join the scheme. You'll get an email telling you how much money you'll make. But these claims are misleading. Pyramid schemes are illegal. Report them to the police if you lose money.

If you do buy something online, it's best to pay by credit card. This is because if there's a problem with the product, the credit card company may be responsible as well as the trader. But before you submit your credit card details to an internet website, make sure it's a secure site (look for the padlock icon).