Internet-related crime rose 110% in 2009

Victims of investment scams, phony work-from-home offers and fraudulent companies offering access to stimulus money reported a record number of financial losses in 2009.

In complaints to the Internet Crime Complaint Center, consumers reported losing $559.7 million at the hands of cyberthieves, representing a 110 percent increase compared with 2008 figures.

And while that figure may seem large, it doesn't tell the whole story.

Fewer than one in 10 people who have been victim to cybercrime report it to law enforcement, said John Kane, a research manager at the National White Collar Crime Center.

"It only represents a small fraction of probably what is going on out there as a whole," he said. "We're not seeing the big picture."

Established in 2000, the complaint center is a joint program of the FBI and the National White Collar Crime Center.

Officials from all three agencies released the 2009 Internet Crime Report. It is the ninth annual report documenting Internet crime cases.

During the year, the complaint center got 336,655 complaints and referred 146,663 of them to state, local and federal law-enforcement agencies nationwide. Identity theft, credit-card fraud and nondelivery of merchandise topped the list of complaints, according to the report. The median dollar loss was $575.

But the highest losses came from investment fraud, which had a median loss of $3,200.

Experts warn of some new trends on the horizon, including fake mobile-phone applications designed to steal personal information.

Computer hackers familiar with search engine algorithms also have discovered ways to make fake Internet postings appear alongside other results to a query.

If clicked on, these postings will link to Web site with malware or other malicious software, Kane said.

Social networkers also need to watch out for hacked sites or messages, purportedly from friends, seeking money or access to your personal information.

"Criminals at heart are opportunists," said Charles Pavelites, a supervisory special agent with the FBI. "They're not going to work harder than they have to. They're going to go where the people are."

To protect yourself and your credit, deal only with reputable businesses and make sure you know who you are doing business with. And don't give out personal information unless it's in a secure environment, said Greg Donewar, manager of the Internet Crime Complaint Center.

BY THE NUMBERS

The FBI and Internet Crime Complaint Center released a study about cybercrimes reported in 2009. A look at some of the details:

Complaints received: 336,655

Complaints referred to law enforcement: 146,663

Reported loss: $559.7 million, up 3,000 percent from $17.8 million in 2000

Median loss: $575

Highest median losses (by category): investment fraud, $3,200; overpayment fraud, $2,500; advance fee requirements for merchandise or a contract, $1,500

POPULAR SCAMS

Astrological reading: A victim receives a pop-up ad or message offering a free reading and must provide their birth date and location. After receiving a free reading, the person is prompted to pay for a more detailed account - at a price. And once they pay, they receive nothing more.

Hitman message: A person receives an e-mail explaining someone has put a hit out on them, but the hitman will ignore the request - for a fee. Victims are usually told to send money via Western Union or MoneyGram.

SOURCE: 2009 Internet Crime Report