- Internet auction fraud was by far the most reported offense, comprising
44.9% of referred complaints. - Nondelivered merchandise and/or payment accounted for 19.0% of complaints.
- Check fraud made up 4.9% of complaints.
- Credit/debit card fraud, computer fraud, confidence fraud, and financial institutions fraud round out the top seven categories of complaints referred to law enforcement during the year.
You can read the complete PDF version of this report here.
The Romanian Organized Crime appears to be the most active group perpetrating this type of a crime. The following is an excerpt from the report, describing apprehension of a Romanian Crime Gang with some interesting numbers:
More than twenty suspects have been indicted as the result of an ongoing, multi-agency investigation into a Romanian crime ring. Representatives from the Chicago Field Office of the Federal Bureau Investigation (FBI), the Chicago Office of Immigration and Customs Enforcement (ICE), and the Chicago Police 15 Department announced the charges together on December 12th, 2006. Altogether, the defendants and others allegedly illegally obtained more then $5 million dollars from victims in a variety of schemes. The majority of victims believed they were purchasing an item from the EBay auction site. After unsuccessfully bidding on items, they were told they were receiving a second chance offer from the seller. Victims then wired money one of the defendants who posed as the seller or the seller’s agent. Investigators believe the fraudulent solicitations originated from, and a substantial portion of the proceeds were transmitted to, unidentified co-schemers located outside the United States, most believed to be in Romania.
Most of the money was collected at Western Union locations in Chicago, where many of the alleged perpetrators lived. Other victims were sent an email from the crime ring informing them that their EBay accounts would be terminated if they didn’t reply back with their password and other account information. They would then use this information to take over the victim’s account and use it to rip off other EBay users. EBay sellers were victimized as well. The thieves would bid on an item but would not pay through PayPal. Instead, they would persuade the seller to put the money into a fake escrow account. The seller would ship the product and the escrow account would vanish.
Eight defendants were arrested in the Chicago area the day of the announcement, five were already in custody, one is expected to surrender later, and six are fugitives at this time. Each of the defendants is charged with one count of wire fraud. If convicted, they each face a maximum penalty of twenty years in prison and a $250,000 fine. The Court would also order restitution and determine the appropriate sentence
to be imposed.
