The Mail Fraud Schemes Reported Exposed Operation Represent Over 56,000 Victims Who Suffered Cumulative Losses In Excess Of $117 Million

The FBI and Department of Justice are joined by the National White Collar Crime Center (NW3C) today to announce that criminal charges have been brought against approximately 90 individuals and companies as part of a nationwide series of investigations into Internet fraud, code named "Operation Cyber Loss," initiated by the Internet Fraud Complaint Center (IFCC). Subjects are facing a variety of Federal and state criminal charges which include fraud by wire, mail fraud, bank fraud, money laundering, and intellectual property right violations. The fraud schemes exposed as part of this Operation represent over 56,000 victims who suffered cumulative losses in excess of $117 million.

Among the fraud schemes targeted are those involving on-line auction fraud, systemic non-delivery of merchandise purchased over the Internet, credit/debit card fraud, bank fraud, investment fraud, multi-level marketing and Ponzi/Pyramid schemes. Internet fraud can be defined as any fraudulent scheme in which one or more components of the Internet, such as Web sites, chat rooms, and e-mail, play a significant role in offering nonexistent goods or services to consumers, communicating false or fraudulent representations about the schemes to consumers, or transmitting victims' funds, access devices, or other items of value to the control of the scheme's perpetrators. Many of these cases were initiated as a result of fraud complaints the IFCC received from individuals and businesses.

"Just as neighborhood watch programs keep watch over their neighborhoods and report suspicious activity to law enforcement, Internet users now have a 'cyber community watch' program. When individual citizens, businesses, and consumer agencies work with law enforcement at all levels, we help ensure the safety and security of the Internet," said Attorney General Ashcroft.