“Social fakes” are invented profiles on social media (often referred to as profile misrepresentation), which can be used to harass or mock victims anonymously. But the more lucrative fake profile is one that imitates a legitimate business, damaging that business’s online reputation.

The impostors’ ultimate goal? Spam leading to scams.

Social-web security provider Impermium published the results of their recent analysis of the cost of social spam. “Online ID signup fraud” is an emerging trend, with fraudulent accounts ranging from a low of 5% to 40% of users. “Scammers are registering accounts by the millions as they perpetrate fake “friend requests,” deceptive tweets, and the like, while the black market for bulk social networking accounts is growing exponentially.” (more…)

Online auction and classifieds websites are unwittingly participating in car sale scams. Ads gain credibility by appearing on eBay, Craigslist, and other online automobile sales websites, but some are either completely phony or have been copied and pasted from other websites.

The FBI’s Internet Crime Complaint Center received nearly 14,000 complaints from 2008 through 2010, from consumers who have been victimized, or at least targeted, by these auto sale scams. Of the victims who lost money, the total dollar amount is staggering: nearly $44.5 million.

The FBI explains how the scam works:

“Consumers find a vehicle they like—often at a below-market price—on a legitimate website. The buyer contacts the seller, usually through an e-mail address in the ad, to indicate their interest. The seller responds via e-mail, often with a hard-luck story about why they want to sell the vehicle and at such a good price. (more…)

Meet with Cory at iDate West

On June 22-24, the Internet Dating Conference will be taking place in Beverly Hills at the SLS Hotel. The 8th annual show assembles senior dating and social networking executives to network and share best practices.

Attendees will hear from the likes of SpeedDate, Google, Click 2 Asia, Pink Sofa, Match.com, Grindr, DatingHype.com and Mark Brooks of Online Personals Watch.

From anti-fraud experts iovation, Senior Sales Executive Cory Swick will be attending the show. Cory has been a frequent speaker at the Internet Dating events, presenting case studies and leading panels on protecting brand reputation and customers against online scams, predators and spammers.

This year Cory will be talking to online communities about the latest enhancements to iovation’s fraud-fighting service, ReputationManager 360. These recent developments include mobile SDKs (iOS and Android) and a suite of new and updated business rules that offer great flexibility and control over the activity on dating sites.  The sophisticated business rules allow sites to identify specific characteristics or behaviors at the device, account or transaction level. Business rules are combined into rule sets to manage the risk associated with different interactions on the dating site – such as profile creation or payment.

Dating sites configure and weight business rules in various categories to efficiently identify spammers and scammers, including:

• Evidence Rules – Trigger an alert when activity comes from an account or device already associated with fraud such as online scams or financial fraud.
• Geolocation Rules – Trigger an alert when activity is coming from an unauthorized country or through a proxy.
• Velocity Rules – Trigger an alert when thresholds for the number of accounts opened, or the number of devices accessing an account has been exceeded within a certain timeframe. Or perhaps when an account has been accessed by too many countries.

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Device reputation spots online evildoers by examining the computer, smartphone, or tablet they are using to connect to any website. If a device is recognized as having previously committed some type of unwanted behavior, the website has the opportunity to reject the transaction, preventing damage before it occurs.

In the physical world, as the saying goes, “You are only as good as your word.” And when somebody says one thing and does another, we no longer trust them.

Online, people say and do things they never would in the real world. Internet anonymity fuels bad behavior. Websites’ comments sections are filled with vitriol that you’d never hear real people utter. Pedophiles who’d never approach a child on the street contact kids over the Internet. Sex offenders avoid the stigma of their label on dating sites and social media. Scammers create accounts in order to con people and businesses into forking over money. And identity thieves use your personal information to fill out online applications for credit. (more…)

Internet criminals follow a similar editorial calendar as newspaper and magazine editors, coordinating their attacks around holidays, and the change in seasons. They further capitalize on significant events and natural disasters.

On Super Sunday weekend much of the scamming taking place is designed to separate the public from their money using the Big Game as the lure. People are seeking information on the Game and are being tackled by criminals who steal the ball.

The promise of cheerleader-filled videos along with downloadable player pictures or even Big Game memorabilia will dominate the scamverse. (more…)

When it comes to online dating scams, we all like to believe we learn from our own, and others, experiences. But according to new statistics on Romancescams.org, a website dedicated to fighting online romance scams, the average loss per person involved in a romance scam has climbed to a staggering $11,500. That’s up from a 2007 report where the advocacy group cited the average loss per victim was $7,900.

According to the article, “Website offers forum on avoiding romance scams,” fraudsters continue to successfully scam unsuspecting lonely hearts by using stolen credit cards to join online dating sites and set up fake profiles. From there, they quickly lure their victims off the dating sites and onto more personal lines of communications such as instant messaging and email before romance sites can discover the stolen credit card and pull their fake profiles. (more…)

Last week, the Internet Crime Complaint Center (IC3) released its 2009 Annual Report on Internet fraud activity, and the results were staggering. According to the report, in 2009 U.S. citizens lost nearly $560 million to online scams. That number more than doubled the $265M in online fraud losses reported in 2008. The IC3, which tracks worldwide complaints of Internet fraud through its Web site, also said the total number of complaints in 2009 jumped 22% compared to 2008.

In the article, “Internet fraud’s U.S. price tag put at $550 million,” Donald Brackman, director of the National White Collar Crime Center (NW3C), said the growing figures can be largely attributed to increasingly sophisticated online schemes and cyber criminals’ ability to hide their true identities online. (more…)