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Internet services can be used to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme.
Research suggests that online scams can happen through social engineering Purchase fraud occurs when a criminal approaches a merchant and proposes a business transaction, and then uses fraudulent means such as a stolen or fake credit card to pay for it. Merchants who accept credit cards may receive a chargeback for the transaction and in the process, lose money.
The most common fraud takes place using credit cards.
This is when the account numbers and PIN numbers are obtained when a transaction is done.
The fraudster (s) use this information to withdraw money from unsuspected individual.