The FBI's 10th annual Internet crime report finds that complaints and money losses are at an almost all-time high with non-delivery of payment or merchandise, scams impersonating the FBI and identity theft leading to top 10 online complaint parade.
The report, which is issued through the FBI's partner, the Internet Crime Complaint Center (IC3) and the National White Collar Crime Center (NW3C) found that in 2010, IC3 received 303,809 complaints of Internet crime, the second-highest total in IC3's 10-year history. IC3 also reached a major milestone this year when it received its two-millionth complaint. On average, the group receives and processes 25,000 complaints per month.
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The top 10 Internet crimes were:
1. Non-delivery Payment/Merchandise
2. FBI-Related Scams
3. Identity Theft
4. Computer Crimes
5. Miscellaneous Fraud
6. Advance Fee Fraud
8. Auction Fraud
9. Credit Card Fraud
10. Overpayment Fraud
Top 10 Internet complaint states include:
3. District of Columbia
4. New Jersey
Some other highlights from the study:
One of the more interesting findings was that auction fraud fell. According to the IC3 auction fraud has been the leading complaint reported by victims over the past 10 years, with a high of 71.2% of all referrals in 2004. However, in 2010, auction fraud represents slightly more than 10 percent of referrals. Unfortunately this number demonstrates the growing diversification of crimes related to the Internet.
"Certainly as new operating systems and devices, particularly in the mobile area come into the market an opportunity for what the IC3 calls diversification is possible as the people looking to perpetuate fraud look to find new loopholes but vendors bringing these systems to market are getting better at taking care of those problems, Adam Chernichaw a privacy attorney and partner at White & Case, in New York. "More frequent vulnerability testing of online merchant systems and better operating system security has made it more difficult for security breaches to lead to significant data theft."
Chernichaw said reduced fraud numbers could come from improved automated detection tools and better fraud management techniques from merchants.
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