Today, most of us surf the internet to complete a multitude of tasks. We do everything from online bill paying, to emailing friends and family around the world. But what about the darker side of the internet? Everyday there are innocent people who fall victim to different types of fraud online. There are numerous internet scams out there that mimic those we once only heard about happening over the telephone or through snail mail. It is important to be aware of the different types of internet frauds so that we can avoid them whenever possible.

Most of us think to take extreme measures to protect our children from online predators, which in today's world unfortunately is something that we must do. But what about protecting ourselves from fraud online? Being aware that there are criminals online who are using different methods to introduce online scams is the first step in protecting yourself. Some of the frauds that are used are obvious, while others might not seem to pose a threat to your money or put you at risk from identity theft. Scammers use tactics ranging from email spamming of bogus lottery contests to methods of stealing your credit card information. Knowing the methods that internet criminals use to commit these crimes can be a huge step in protecting yourself.

Credit card scams have existed for a long time and are one of the most prevalent online scams out there. Internet frauds dealing with credit cards can happen in different ways. Identity theft involving credit cards is a big business and affects hundreds of people every day. There are two types of scams involving credit cards and identity theft. The first is account takeovers and the second is called application fraud.

Account takeovers happen when an individual takes over another individual's credit card account. This happens by gathering pertinent information about the victim and then contacting their credit card company or bank. These types of frauds are committed first by asking for all relevant documents to be mailed to an alternate address, then the credit card is reported lost and a new one is sent to the new address. This type of scam allows the individual committing the fraud to easily obtain the victim's credit card information and then fraudulently make charges in the victim's name.

Application fraud differs in that they are committed by opening new credit card accounts using stolen information. This occurs when fake or stolen documents are used to open up a credit card account in another person's name. Frauds such as this are not as hard to commit as you might think. Personal information contained in household bills and bank statements can be used to create fraudulent documents, which most of the time are credit cards. Even when there are fraud protection systems in place, internet scams involving credit cards can happen. You might want to consider using the services of Life Lock or IdentityTruth to protect your identity.

Other individuals may get caught up in online fraud that concerns manipulation of the stock market. These types of scams can happen in areas of the internet that may seem harmless to most. They are called pump and dump. This takes place when false stock information is broadcast in places such as internet forums, chat rooms and also through spam emails. The reason that people committing the fraud do this is to cause a huge increase in the stock prices of stocks that are normally thinly traded and owned by shell companies. Shell companies are those that have no independent operations of their own and are used by their owners to normally maintain control over other companies. This is the pump in the pump and dump scheme. The dump happens when the stock prices get to a certain level, and those committing the fraud sell off their stock. This allows them to gain an abundant profit before the prices of the stock go back to the normal levels. In this case, the victims are those who purchased the stock and were unaware that the price was going to fall.

It is extremely important to be aware of the types of internet frauds out there. Anything that virtually seems too good to be true just may be. Any type of investment or other opportunity should be thoroughly examined before any action is taken. Be aware that there are those out to gather our information in order to better themselves, leaving you the one that is harmed financially. Before you fall victim to any of these online scams, do some research and always get the facts.