Internet Fraud has been a number one act of theft indulgence which has made many people grow heart ache, commit suicide and die all around the world.
Reasons or Causes of Internet Fraud or Scam:
Perceived Pressure: Every fraud perpetrator faces some kind of perceived pressure in terms of financial and non-financial needs. These motivate the action of defrauding people, for instance the need to report better than actual performance, frustration with work, financial loses and poverty and falling of company or sales pressurizes people for such action.
Unemployment
Perceived opportunity: This where due to poor performances or inadequate internal controls by company or individual make them enter into fraud to alleviate sort of embarrassment.
Poverty
Rationalization: This where perpetrators see their action as good hence needs for improvement in the act.
The Effect of Internet Fraud..
Internet fraud causes financial loss to individuals. It involves huge sums of money being stolen from individuals causing them 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)
Internet fraud causes indirect losses to companies whose clients have been have been defrauded. This is because fraud usually causes great money to be taken off an individual or company and once this happens it will in turn affect a client’s ability to meet other monetary duties and obligations.
Internet fraud throws emotional and psychological burdens on individuals. This is because as human being we have the natural tendency to develop fear towards anyone or anything that has previously caused us harm.
Internet fraud has cost some people their lives. Examples are a man from Cambridgeshire who killed himself after realizing he had been tricked and thought he had actually won 1.2 million dollars. (BBC News, 2004) and another student in University of Nottingham who committed suicide after giving thousands of pounds with the expectation of getting millions in return only to realize she had been duped. (BBC News, 2008) Damaged reputation. Extra costs to repair fraud damage.
Internet Fraud has caused West Africa to have a bad reputation. West Africa, particularly Nigeria and Ghana are notorious for Internet Fraud across the globe and this has painted a bad image for West Africa all over the world.
Loss of potential foreign investors. Due to Internet Fraud in West Africa, many people who hither to would have set up businesses in West Africa have drawn back for fear of destroying their businesses rather than building them up.
Internet Fraud has led to mistrust in West Africa. People who would have liked to do business with or in West Africa no longer have the confidence or feel safe to do so due to Internet Fraud.
The Solutions are:
Nothing has been done to solve the problem. However, publicity has been created to inform individuals about the menace. One thing is sure- a nation with a high incidence of crime cannot grow or develop.
A website for informing individuals on internet fraud has been created.
Creating of central agency to enforce crime laws.
There should be decentralization of The Internet Fraud Council (IFC) in West African states in other to tackle this issue very well.
Don’t agree to deposit a check and wire money back.
Don’t play a foreign lottery.
Don't send money to someone you don't know.
Know who you’re dealing with.
Remember there's no sure thing in investing.
After a disaster, give only to established charities.
Read your monthly statements.
Know that wiring money is like sending cash.
Transactions via the internet should require more than just names and credit card numbers. Video calls or face to face transactions should be encouraged.