How to eliminate online fraud?

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Elite Baiter Joined: 02 Jul 2006 Posts: 1702

Fraud costs everyone money, from inflated insurance down to actual loss from fraud itself.

So this is an open ended question, and hypothetical at best.

Scenario: You have a genuine online business, it has a store, with member created offers, it could be an ebay type business or a gumtree type one.

How would you go about protecting it from fraud, not only 419 but other types of fraud as well, such as pay and complain items didnt arrive, non existing items.

In addition how would you educate your visitors not to fall for the obvious scams, but also to educate them enough not to fall for the not so obvious ones.

Posted: Wed Apr 22, 2009 2:34 pm

Perhaps take notes from Craigslist.. talk about money orders, cashiers checks, and etc.. trust me I've seen good fakes in my drop box in the past (Temp closed due to lack of funding...)

Dont accept overpayments..

Posted: Wed Apr 22, 2009 3:51 pm

The problem is bigger than a simple warning on a site like eBay or Craigslist. To get through to the majority of victim-type people would take a textbook of explanation, and who reads that kind of stuff anyway? How many people register for forum sites without reading the Terms of Service? (C'mon, admit it - did you read the TOS when you signed up here?)

Perhaps the only way to get the information into a potential victim's head even momentarily would be to require them to complete a test based on the warning information before they can register. But then, that'd be educating the scammers as well, wouldn't it. Confused

Posted: Thu Apr 23, 2009 3:31 am

Titania wrote:

(C'mon, admit it - did you read the TOS when you signed up here?)

I actually did... Shocked

I agree that most people (unless ParaNoid) will NOT read warnings. I also read through contracts BEFORE signing them. I know I am a bit "odd". Sadly even when cautioned people don't read the directions or warnings. Sad

Posted: Thu Apr 23, 2009 10:15 am

part ( but by no means all ) of my real life buisness is run online this is what i would do .

the most obvious one is if someone pays by cheque lodge it in your bank and wait until it is cleared before you send the goods . even do a google search for the bank it has come from . let people know you won;t send good until the cheque is cleared . if people lean on you to do so tell them they have to wait , if they run away it was a fruad .

remember the phrases if something sounds too good to be true it usually is and if in doubt leave it out .

if someone sends you a cheque for more then the amount of the goods you are selling refuse to take it .

also i would be very wary of people suggesting using using money transfer sites such as western union or moneygram. if they can;t afford to send a cheque how can they afford to wire money .

never send money to people you only know online.

spread the word about fraud . the more information out in the open the more the scammers have to fear . also if you have been scammed speak out . i know it is embarassing to say yes i got caught up in a scam but by speaking out you might stop others going through the same thing .

don't take people at thier word online . better to be safe then sorry .

we are all members here so if you have any doubt about someone being involved in fraud check here too .

Baiting Guru Joined: 19 Mar 2007 Posts: 2628

Gumtree have a warning acroos the top and give a link to THIS

Again it relies on people reading and taking in what is being said

Posted: Sun Apr 26, 2009 3:57 pm

I wouldnt tell people the search for the online bank via google. 99.9% of the fakes I have seen are of real banks and real accounts or at least one time were..

Checking the "card stock" of the check is useless this day and age now too since you can by the ink, paper and software at any office store now. And many of the scammers get their vics to buy this for them.

I have seen very good fake Postal money orders, travelers checks, cashier's checks.. (though most of these will be lacking the water marks and/or the heat-sensitive portions..but you can get this card stock for "normal checks"

People just have to use common sense but again not all have this ability.

Posted: Mon Apr 27, 2009 9:02 am

There is of course only one unequivocal and sure fire way of eliminating the problem. The solution, inspired as I write now by the receipt of today's twenty-second and twenty-third text message spam, is of course: To round up and pubically slow fire, flay and quarter those responsible on a monthly basis until they cease. It would be a good idea to have their mutilated bodies preserved and kept on display for up to two generations post-cessation, although in the interest of public beautification I think this period could be cut to ten years.

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