Online scams cost consumers $240M last year

IC3 processed more than 200,000 complaints in 2007

By Bill Byrd

FAIRMONT — Internet crimes, including bogus auctions, cons based on unsolicited e-mails and identity theft, are continuing to keep the Fairmont-based Internet Crime Complaint Center busy.

Nearly a quarter-million complaints were received last year by the center, known as the IC3.

The IC3 is a partnership of the National White Collar Crime Center (NW3C) and the FBI. Both centers share offices in Fairmont’s I-79 Technology Park.

The IC3 analyzes and refers Internet fraud complaints to the appropriate local, state and federal law enforcement agencies.

Of the 219,553 complaints from all sources that were processed by the IC3 in 2007, slightly more than 90,000 were sent on police agencies around the country and even overseas for further consideration.

“Consumers lost nearly $240 million last year as a result of scams perpetrated over the Internet,” said Craig Butterworth in a press release on the center’s annual report. He is a NW3C communications specialist at its administrative headquarters in Richmond, Va.

“That’s an increase of nearly $40 million over the preceding year,” or a 20 percent increase, he said. In 2006, the yearly dollar loss for referred crimes was $198.44 million. Last year, the total was $239.09 million.

“Other ‘high activity’ scams reported last year involved pets (for purchase or sale), checks, spam and on-line dating sites,” he said.

While the dollar value of losses increased from 2006 through 2007, there was a slight drop in the number of complaints received at the center’s Web site. The center got 207,492 complaints online in 2006, compared to 206,884 last year. The center’s Web site is: www.ic3.gov.

The most complaints received online occurred in 2005 with 231,493. The center began operations in May 2000.

Internet auction fraud was the most-reported offense last year, making up 35.7 percent of referred crime complaints, the report states.

Non-delivery of merchandise and/or payment represented 24.9 percent of complaints. Confidence fraud made up 6.7 percent of the complaints. Credit and debit card fraud, check fraud and computer fraud complaints amounted to 17.6 percent.

Identity theft, financial institutions fraud, threats and Nigerian letter fraud complaints amounted to slightly less than 8.3 percent of all complaints.

The center also handles complaints about hacking (computer intrusion) and child pornography.

According to an analysis of referrals, men account for 75.8 percent of the perpetrators and half of them live in these states: California, Florida, New York, Texas, Illinois, Pennsylvania and Georgia.

A significant number of perpetrators also were located in the United Kingdom, Nigeria, Canada, Romania and Italy.

Among those filing complaints, men accounted for more than half (57.6 percent).

The IC3 also got a number of complaints from Canada, the United Kingdom, Australia, India and Mexico, the report states.

Internet users who are tempted by an online offer of goods and services but who want further information can turn to a public Web site. The site, which is hosted by the IC3 and its partners, is: www.lookstoogoodtobetrue.com.

The site has consumer alerts, tips and descriptions of fraud trends.

The IC3 annual report is available online at this address:www.ic3.gov/media/annual reports.aspx.

E-mail Bill Byrd at bbyrd@timeswv.com.