| The 2008 IC3 report on cyber crime is just out, and | | | | The total reported dollar loss from all referred cases |
| the news is not good: cyber crime is up again. This, of | | | | of fraud was $264.6 million with a median dollar loss of |
| course, is hardly surprising seeing as the cyber criminal | | | | $931.00 per complaint. This is up from $239.1 million in |
| is getting smarter, and more numerous, by the day; | | | | total reported losses in 2007. Other significant findings |
| while law enforcement continues to play catch-up. | | | | related to an analysis of referrals include: |
| What is a little surprising, however, is that Internet | | | | Non-Delivery |
| Auction Fraud-which was the most reported online | | | | Non-delivered merchandise and/or payment was, by |
| crime for the last two years-no longer heads the pack, | | | | far, the most reported offense, comprising 32.9% of |
| though at 25.5% of all reports, it runs a close second; | | | | referred complaints-this is a 32.1% increase from the |
| instead, the most reported online crime for 2008 is | | | | 2007 levels of non-delivery of merchandise and/or |
| Non-Delivery of Merchandise and/or Payment, which | | | | payment reported to IC3. |
| comprises 32.9% of all reported instances of internet | | | | Internet Auction Fraud and Other Scams |
| fraud. | | | | Internet auction fraud accounted for 25.5% of referred |
| The IC3 | | | | complaints. Credit/debit card fraud made up 9.0% of |
| The Internet Crime Complaint Center (IC3) began | | | | referred complaints. Confidence fraud, computer fraud, |
| operating on May 8, of 2000, as the Internet Fraud | | | | check fraud, and Nigerian letter fraud round out the top |
| Complaint Center-a partnership between the National | | | | seven categories of complaints referred to law |
| White Collar Crime Center (NW3C) and the Federal | | | | enforcement during the year. |
| Bureau of Investigation (FBI)-to serve as a vehicle to | | | | Access Method |
| receive, process, and refer cyber crime complaints. | | | | E-mail (74.0%) and WebPages (28.9%) were the two |
| IC3 was intended for and continues to serve the | | | | primary channels over which the fraudulent contact |
| broader law enforcement community, including federal, | | | | took place. |
| state, and local agencies, and since its inception, IC3 | | | | A Closer Look at Non-Delivery |
| has received complaints running the full gamut of cyber | | | | Doing the non-delivery math paints an unpleasant |
| crimes, including online fraud (in its many forms), | | | | picture: |
| intellectual property rights matters, computer intrusions | | | | Since Non-Delivery constitutes 32.9% of the 275,284 |
| (hacking), economic espionage (theft of trade secrets), | | | | reported cyber crimes in 2008, this means we saw |
| child pornography, international money laundering, | | | | 90,568 reported non-delivery cases. Now, since |
| identity theft, and a growing list of additional cyber | | | | according to the National White Collar Crime Center's |
| crimes. | | | | August 2005 report, The National Public Survey on |
| The 2008 Internet Crime Report is its eighth edition. | | | | White Collar Crime, only one cyber crime in seven is |
| The Numbers | | | | actually reported to police or a regulatory agency, we |
| From January 1, 2008 - December 31, 2008, IC3 | | | | will have to multiply this number by seven to get an |
| received 275,284 online complaints. This is a (33.1%) | | | | accurate count of perpetrated non-delivery crimes for |
| increase over 2007, which saw 206,884 online | | | | 2008, which ends us up with 633,976. |
| complaints. | | | | This in turn means that 1,736 such crimes occur every |
| Of all complaints received, IC3 referred 72,940 of them | | | | day, or 72 ever hour, 24/7. |
| to federal, state, and local law enforcement agencies | | | | Or, to put it in another light, here in the United States, |
| around the country for further consideration. The vast | | | | every minute of ever day (24/7), a product is |
| majority of these cases was of a fraudulent nature | | | | fraudulently sold (and gullibly purchased and paid for) |
| and involved a financial loss on the part of the | | | | online. |
| complainant. | | | | Not a laughing matter. |