Page 29 - Simply Electronics Case

Appendix 2

WHAT IS INTERNET FRAUD?

“The term ‘Internet fraud’ refers generally to any type of fraud scheme that
uses one or more components of the Internet - such as chat rooms, e-mail,
message boards, or Web sites - to present fraudulent solicitations to
prospective victims, to conduct fraudulent transactions, or to transmit the
proceeds of fraud to financial institutions or to other connected with the
scheme.”

Source: US Department of Justice

NON DELIVERY OF GOODS/ SERVICES FRAUD

This refers to a scam in which people are encouraged to pay for goods and or
services via a web portal, thereafter nothing is delivered to the customer.

BUYING ABROAD ONLINE

• When you buy products or services online from another country you
effectively don’t have any legal protection

• The laws of your country don’t apply to something sourced outside your
country

• Law enforcement from the vendor’s country are likely to be disinterested
unless the offence takes place inside that country

KNOWING THE VENDOR’S IDENTITY

• It is very easy to disguise many aspects of the true identity of an individual
or company online

• Most purchasers are inclined to take statements made at face value, and this
fact is often exploited