Skip the navigation
)

How to make a lot of money off the Web

By Todd Shipley
August 22, 2001 12:00 PM ET

Computerworld - Todd Shipley is a member of the Reno Police Department's Financial/Computer Crimes Unit and he wrote this article for Computerworld's Security Community.

Would you like to know how to make a lot of money from your online business? No, it's not an investment scheme, or a high-tech stock or initial public offering gamble. It's your own company. "How," you ask, "am I going to make a lot of money from my own company?" Well, you take credit cards for purchases online. What could be better then getting involved in a part of the e-commerce economy that's still booming?

Did I mention that it wasn't you who was going to make a lot of money?

Online fraud is a problem that's increasing exponentially. Auction fraud, pyramid schemes, chain letters, you name it -- it's out there online. Credit card fraud is the bread and butter of not only small-time crooks but organized criminals as well -- not all of which are even within the reach of U.S. law enforcement. Credit card fraud can potentially take a lot of money from any business that decides to add an online presence to its company. For small businesses, the opportunity to compete in a larger market, like the Internet, is a huge lure for people interested in profits. The pitfalls, though, can destroy a small business in a single transaction. It can also have long-term effects on larger ones.

A medium-size online company that sold computers and software online recently went the way of many Internet start-ups -- it closed its doors. The company had many of the usual start-up problems -- a quick expansion, several moves to larger office space and unchecked fraudulent purchases from its online sales. In six months, the company lost $100,000 in charged-back credit cards from purchases made by people using stolen credit card numbers. Larger companies may be able to absorb such a loss, but for this company, it was one of several things that led to its collapse. What this company found out too late was that organized criminals from a former Eastern Bloc state had targeted U.S. companies that took credit cards online and did little to validate that the transactions were good.

Could it have been avoided? Certainly. Although law enforcement can't help with poor management, we can help with those people who are knocking on your door and trying to rob you every day. And that is exactly what online credit card fraud is, someone showing up at your door in a mask



What is Tech Briefcase?
TechBriefcase is a new, free service where IT Professionals can Search, Store and Share IT white papers and content like this. Learn more
Bookmark content
Speed up your research efforts with content across the web.
Search and Store
Find the white papers you need. Create folders for any topic.
View Anywhere
Open your briefcase on your iPhone, tablet or desktop. Share with colleagues.
Don't have an account yet?
Additional Resources
Security KnowledgeVault
WHITE PAPER
Security is not an option. This KnowledgeVault Series offers professional advice how to be proactive in the fight against cybercrimes and multi-layered security threats; how to adopt a holistic approach to protecting and managing data; and how to hire a qualified security assessor. Make security your Number 1 priority.

Read now.

Cut Communications Costs Once and for All
WHITE PAPER
New IP-based communications systems are being deployed by small and midsized businesses at a rapid rate. Learn how these organizations are enabling faster responsiveness, creating better customer experiences, speeding office or mobile interactions, and dramatically reducing existing communications costs.

Read now.

White Papers
Practice Management: Double Billing Rate and Improve Patient Services
Would you like to double your billing rate and achieve faster payment for services?

Download this customer success story to see how One Health...
Mission Critical Data Explosion and Customer Case Study
Would you like to double your tier 1 storage capacity while simultaneously reducing your storage footprint?

Download this customer success story to see how...
Protecting Against Database Attacks and Insider Threats: Top 5 Scenarios
Read this new eBook to learn the top five scenarios and essential best practices for preventing database attacks and insider threats.
Database Activity Monitoring Is Evolving
Read the analyst report and learn how you can leverage the core capabilities of a DAP solution for better database security.
Establishing a Strategy for Database Security is No Longer Optional
The options for securing increasingly valuable databases are very broad and deep, and can be confusing. This research provides an overview of three...
Webcasts
Live Webcast
Data Privacy and Protection in Production Environments: New Research from Ponemon Institute
Date: Wednesday, June 13, 2012, 1:00 PM EDT / 10:00 AM PDT

In a recent study conducted by Ponemon Institute, fifty-five percent of respondents...
Live Webcast
A Geek's Guide to Presenting to Business People
Live Webcast: Wednesday, June 20th at 1:00 PM EDT

Join this live webinar with Paul Glen, author of Leading Geeks, to learn how to...
Live Webcast
Today's NAS: A Solution Beyond Old Limits
Date: Tuesday, July 17, 2012 2:00 PM EDT

Traditional NAS systems don't scale beyond fixed limits. Proliferation of NAS systems leads to management...
Distributed Database Security with Real-time Monitoring
View this demo and learn how IBM InfoSphere Guardium database activity monitoring can help protect your sensitive data in distributed DBMS environments with...
InfoSphere Warehouse Packs Demo
These flash modules make warehousing more tangible and relevant to business users through detailed explanations of the InfoSphere Warehouse Packs.
Delivery Management -- Extending Lifecycle Management
Date: Wednesday, June 20, 2012, 1:00 PM EDT

Siloed organizations continue doing the wrong things and doing things wrong, leading to increased costs,...
Leverage automation today to reduce IT complexity
Date: Tuesday, June 5, 2012, 2:00 PM EDT

Whether your B2B complexity is caused by multiple technologies due to M&A, business or application specific...
Redefine Expectations in the Data Center
Need to do more with less? Watch this video to learn how HP ProLiant Gen8 servers can help your business deploy servers three...
Newsletter Sign-Up

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter
  1. View all newsletters | Privacy Policy
IT Jobs