Internet Fraud

Some of the activities that may result in charges under California Penal Code 502 PC for unauthorized computer access may also lead to federal charges.

A federal law against “computer fraud” makes it a crime to access a computer used by the U.S. government, used by a bank, or used for business purposes, without authorization, with the intent to commit fraud, and obtain something of value, knowingly and with intent to defraud. For a first offense or attempt under this law, penalties may include a fine or imprisonment in a federal prison for up to 5 years, or both. During a second or subsequent offense, you may be fined, imprisoned for up to 10 years, or both.

Examples

There is no limit to the number and variety of frauds that can be carried out over the Internet. But here are some of the most common types:

• Non-delivery of goods someone paid for (fraud).
  
  
  Maria advertises designer shoes for sale with a discount on the auction website eBay, Craigslist, Amazon or any other online marketplaces. Her listings include photos lifted from other web sites. She asks buyers to pay by wire to a foreign bank account. She accepts payment from the buyers, but never ships the shoes.
  
  
  
• Advance-fee scams.
  
  
  Lucas posts Internet ads offering great deals on used cars for sale. When potential buyers email him, he tells them that the car they want is across the country, but he can deliver for an extra fee of $700 or $1000 and other amounts. Lucas tells the buyers they must pay a deposit to have the car delivered, so each buyer sends the agreed-upon amount to a foreign bank account. The cars are never delivered and Lucas never contacts the buyers again.
  
  
  
• Real-estate overpayment scam.
  
  
  Carlos responds to an apartment rental ad on Craigslist. Pedro had sent an email saying he lives outside the United States but is now moving to the U.S. to study and wants to rent the apartment. After Carlos agrees to rent, Pedro sends a cashier’s check from a supposed European bank, in an amount much greater than the agreed price, as a deposit. Pedro asks Carlos to deposit the check and then wire the extra amount to another bank account. Pedro explains that this will help transfer the funds to his new U.S. bank account more easily. Once Carlos deposits the check, he realizes the check was fake and that instead of receiving any money from Pedro, he had paid money.
  
  
  
• Sweepstakes or lottery scams.
  
  
  Someone emails you telling you that you have won a large prize and will receive it after paying certain taxes; the recipient or supposed winner pays the fee, and then learns there is no prize.
  
  
  
• Work-from-home scams.
  These are supposed companies or ghost businesses that offer false attractive jobs that can be done from home, but require applicants to pay a registration fee before the work begins; but in reality the company or job offered does not exist.
  
  
• Phishing or Identity Theft and Credit Card Fraud via the Internet.
  Ruben sends emails to foreigners claiming to be from Bank of America credit card company. These emails say that Bank of America has urgent news about the recipient’s account, but that the recipient must confirm this is their email address before they can deliver the news. The emails ask the recipient to respond with their social security number, date of birth, and current address. Some people respond with that information. Once Ruben has this information, he can use it fraudulently to apply for loans and credit cards in those people’s names.
  
  
• These days many people pay their cell phone bills by credit card. Pedro is a skilled hacker. He creates a program that sends emails to thousands of people. These emails say that the credit card used for automatic payment of their cell phone bill has expired, and that they need to enter new information. The email contains a link to a website that he has created. It looks like the cell phone company’s website, but isn’t. Nevertheless several people go to that link and enter their credit card number and expiration dates. The fake website collects the credit card information and sells it to a crime ring. The person who made the fake website may be prosecuted for credit card fraud in California. The victims of his internet fraud, including the cell phone company he impersonated, may sue him for damages under the Anti-Phishing Law.
  
  
• Estrella sends an email to hundreds of people, claiming to be a representative of a major credit card company. The email says that someone appears to have used the recipient’s credit card without authorization and that the account has been frozen. The email also says the account can be reactivated only by responding with the recipient’s social security number and date of birth. A few dozen people respond with their information. Estrella waits several months or years and then applies for credit cards in all those people’s names. She maxes out the cards on purchases and then cancels them. Estrella may be charged with identity theft. She also could face a lawsuit under the Anti-Phishing Law and be required to pay damages to the people who sent their information, and the credit card company she impersonated in her email.