consumers into revealing personal financial information. Banks and financial institutions have been particularly targeted and the publicity surrounding the fraud has restricted the growth of online banking. Figure 6.1 highlights the most common forms of fraud on the internet.
A little-known, but increasingly prevalent, fraud is that of the dial-up scam. The chain of events runs from telecom providers leasing premium-rate lines to service providers. However, some of the service providers will be fraudsters. The fraudsters scatter ‘free’ downloads to attract their victims (usually music, celebrity pictures or software). A piece of software is lodged in the victim’s computer once they have downloaded the material. This software reconfigures the computer to dial a premium-rate number and this connects the user to the premium-rate site (usually pornography). Eventually, the premium-rate site bills the telecom provider, which then passes it on to BT who then passes it on to the unsuspecting customer. In 2004 there were some 80 000 victims of dial-up fraud in the UK. Victims who receive bills from BT or any other telephone company may seek redress by citing Section 15 of the Theft Act 1968 that covers the obtaining property by deception. Also, victims may seek redress through the Proceeds of Crime Act 2002 that states it is illegal to handle, transfer or arrange assets derived from criminal conduct.