Explain how the Internet has become a tool for fraud. Provide a specific example

What will be an ideal response?


• Terrorists use online activity in identity theft and gaining access to bank and credit card accounts.
• They also sell items at Internet auctions.
• Security fraud is another method of raising funds.
• For example, a group might buy a large amount of stock in a company that is fairly inactive.
• They then fill the Web with stories of new products, new technology, or some other item that will cause the company's stock to increase.
• As the stock value increases, terrorists sell the stock at an inflated price even though the company had no real increase in value.
• Before the stock drops back to its normal level, the terrorists make a huge profit.
• This process is known as "pump and dump," and it is frequently used by dishonest stock speculators and other criminals

Criminal Justice

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