U.S. bid to combat Internet fraud

By Our Special Correspondent

NEW DELHI, MARCH 12. For the first time, U.S. intelligence agencies have put a face on internet crime, a step that should make it easier for the law enforcing agencies in developing countries like India where e- commerce is in its infancy, to develop appropriate systems to counter Internet fraud. Contrary to the expected trend, credit card fraud formed a minor proportion of the reported Internet fraud, while auctioning and non-deliverable merchandise accounted for three-fourths of all complaints.

The information collected by the Internet Fraud Complaint Center (IFCC), a joint project of the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C), is being described as a significant asset to law enforcement. The report reveals current statistics and offers detailed trend information on top Internet frauds in the U.S. It also gives a perspective on the compliant referral process with indicators of the programme's early success.

Of the 20,000 complaints received at the centre in its first six months of its operation, almost 5,300 involved fraud and were referred to law enforcement agencies around the U.S. On- line auctions generated the most complaints - 64 per cent of the total - and non-deliverable merchandise and payment was another major source of compliant, representing 22 per cent of the total, while credit and debit card fraud formed just five per cent.

``Part of our commitment to our electronic commerce community rests in law enforcement's ability to respond quickly to crime problems as they arise. To do that, enforcement professionals at all levels must have training and programmes in place to prepare them to meet new challenges,'' said a NW3C official. ``E-business is no longer just a buzz word. It is here to stay and we must find ways to help consumers and businesses have confidence in the transaction technology they use,'' he added. In the first six months of operations, 20,014 complaints were received. Of these, 6,087 were referred to enforcement agencies. Of them, 5,273 involved Internet fraud and serve as the primary analysis of the report.

According to the report, the instances of fraud show that there is an urgent need to establish an electronic clearing house for prompt receipt, validation and referral of Internet fraud cases to the appropriate law enforcement authorities. ``It is our hope that the information will also serve as fuel to help us sustain organisational or financial support for existing white collar crime enforcement, prosecution and prevention programmes as well as help enforcement agencies secure critically needed resources to address this threat to our citizens,'' said a senior NW3C board member.

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