Types of Fraud

Some common Internet scams involve travel. Others are investment scams. Travel scams are often found on auction sites. Some people commit fraud by claiming that they have plane tickets which they can't use, and instead of loosing all their money, they'd rather sell it at a lower price. The consumer, in this case, pays lots of money and never gets any tickets (Internet Fraud Watch). Often, in the case of investment fraud, "companies pay the people who write online newsletters cash or securities to "tout" or recommend their stocks." By itself, this not illegal, but the trouble comes when they do not disclose who is paying them, and how much they are paying them. Many such criminals lie about this information in order to make more(Internet Fraud).

Another type of fraud are pyramid schemes, or Ponzi schemes. Ponzi schemes get their name from Charles Ponzi, one of the most successful users of such a scheme. Such scams involve training the "investor", to pull in more investors, by selling them the same promise of training to make(Darby 134).

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