Internet Fraud

Internet Fraud

Many new business laws and regulations were formed because of the different types of fraudulent that took places. It has affected individuals as well as businesses. Internet crimes affect the business finances and reputation greatly. It is the company’s responsibility to protect itself from both internal and external threat of fraud. New laws are being created in order to prevent future fraud. Electronic Commerce Act of 2003 also known as e-sign of 2003 made it possible for companies to conduct business electronically, and provide solutions for fraud. The Federal Trade Commission (FTC) regulates e-commerce activities including commercial emails, online advertising, and consumer privacy. Identity theft is a reason to why these laws are needed for consumer. Digital Millennium Copyright Act (DMCA) protects individuals and companies from being a victim of illegal advertising and marketing.

There are differences between face-to-face business law and Internet business law. Business laws deal with contracts, sales, agency and employment law, business organization and property. Face-to-face business and laws have its superiority when compared to Internet business law. Face-to-face business laws enable negotiation between the involved individuals as they are able to explain the needs, products and services. Communication is a substantial part of business to clear any doubt and negotiate and a face-to-face business provides it whereas, Internet business law deals with the legal issues of online business such as cybersquatting, and copyright laws. Anti-Cybersquatting Consumer Protection Act (ACPA) is a result of cyber squatters. They buy a domain name and do not use it but sell it for a profit.

According to IC3’s 2012 overall statistics, total complaint received was 289,874, complaints reporting loss was 114,908, and a total loss of $525,441,110.00. In 2007, the total complaint received was 206,884, and a total loss of 239.02 million dollars. When compared,...