COMSATS INSTITUTE OF INFORMATION TECHNOLOGY ISLAMABAD

ENTREPRENEURSHIP ASSIGNMENT # 02

Name: Talha Abdul Rauf BBA VII Registration #: Fa08-BBA-107 Submitted to: Sir Jawad Saboor

Ten Examples of Fraud:

1. ATM Fraud:
Conducting an ATM fraud is not difficult at all on the contrary its quite simple. A simple example can be as the following: The con artist or the criminal simply places a electronic card reader with a camera embedded in it on top of the ATM card slot. Nobody notices the change in the ATM machine. When the victim inserts the ATM or credit card in the slot the card reader copies all of the data on the cards magnetic strip and the camera records the footage of the victim entering the pincode. Now the criminal retrieves the data and then the data and the video is downloaded on a computer. Now they can simply complete the data to make a new card and empty the victims account. Then the criminal clones the data on a hotel card and swipes it in the ATM machine and takes away all the cash. 2. Internet Auction Fraud: Now a days internet auctions have become the hub of fraudulent activity. The customers basically dont have even the basic ideas of online shopping. They blindly follow the vague guidelines provided over the internet without verifying the authenticity of the website. And as a result they land in the wrong hands. Meaning 70% of the time the ordered products or merchandise is never delivered and the payment has already been made and there is sign of the culprit everywhere.

3. The Ponzi Fraud:

The fraud has been named after the man who brought this concept to light. The concept behind this fraud is that a person borrows money from many people around him on the agreement that he would be paying them a fortune of money in form of interest and dividend to the lenders. As this concept provided the lenders with much greater return as compared to the traditional system more and more people were drawn towards this system. Initially the borrower pays the lenders with loads of fortune from the money given to him by new comers. And when he feels he has generated enough wealth he disappears without a trace. 4.

Another type of fraud can be when you receive a mail from a foreign country government officer claiming that he wants to transfer millions and millions of illegal money out of that country. For your assistance he offers you a share in those millions of rupees. The recipient is encouraged to send information to the author, such as blank letterhead stationery, bank name and account numbers, and other identifying information using a fax number provided in the letter. Some of these letters have also been received via e-mail through the Internet. The scheme relies on convincing a willing victim, who has demonstrated a "propensity for larceny" by responding to the invitation, to send money to the author of the mail in the foreign country in several installments of increasing amounts for a variety of reasons. The favor he demands is the payment of taxes and bribes to government etc. And he promises to reimburse the expenditure when money is transferred. In actuality, the millions of dollars do not exist, and the victim eventually ends up with nothing but loss. Once the victim stops sending money, the perpetrators have been known to use the personal information and checks that they received to impersonate the victim, draining bank accounts and credit card balances. 5. Clever con artists will offer to find financing arrangements for their clients who pay a "finder's fee" in advance. They require their clients to sign contracts in which they agree to pay the fee when they are introduced to the financing source. Victims often learn that they are ineligible for financing only after they have paid the "finder" according to the contract. Such agreements may be legal unless it can be shown that the "finder" never had the intention or the ability to provide financing for the victims. 6. Most of the people I talked to did not know what IMSI was. It is common knowledge that the scammers are smarter than an average person. They are always looking for convincing ways to make people believe them so that they can con them into parting with their hard earned money. In the latest scam frenzy to hit Pakistan is the IMSI Balance Transfer Fraud. What happens is that you receive a call. The caller will tell you that he is calling from Mobilink to congratulate you for winning Rs. 550,000/- in the Malamal Scheme. But the caller will say that it depends on one condition. He will ask you to write down the number, 899-220 and will tell you that you will get this prize if this number is also written on the back of your SIM Card. He will ask you to call back after checking this number on you SIM card. Now here is the catch, these are the first six digits of the IMSI Number of Mobilink! Assuming that Mobilink has only one IMSI (http://en.wikipedia.org/wiki/IMSI), this number will be on all Mobilink SIMs!! When you call back, he will ask you to call his supervisor on another number to find out how to claim your prize. Now these shortlisted people are handled by another person who will congratulate the

callers and tell them that the fact that he is receiving this call proves that you are a winner. Then he will tell you to visit 10 mobile phone prepaid card retailers and buy cards worth Rs. 500 from each of them, a total of Rs. 5000 worth of cards and call him back after loading this balance in your phone.

7. Senior citizens are frequent targets of Medicare schemes, especially by medical equipment manufacturers who offer seniors free medical products in exchange for their Medicare numbers. Because a physician has to sign a form certifying that equipment or testing is needed before Medicare pays for it, con artists fake signatures or bribe corrupt doctors to sign the forms. Once a signature is in place, the manufacturers bill Medicare for merchandise or service that was not needed or was not ordered. 8. There can be banking frauds as well. And the one which I am going to explain is one which came to my own experience. As we know that the amount section of a pay cheque has to be filled like this 40,000/- but some people write a cheque like this 5000 /- and later on they add zeros to exaggerate the original amount which is very difficult to deduct for the cashier.
9.

Now days there are many sites such as the ten dollar click website or 6 dollar website which promises that you would be paid with $10,000 once they reach their amount. But it doesnt actually happens and the people into it have to invest lots and lots of time into it. 10. Some ID thefts occur when a credit card is stolen. Thieves taking a more tactical approach will complete a change-of-address form at the post office and have credit cards in your name sent to another address. Because your credit card bills are being sent to a new address, you may not discover a problem for a long time.