Companies may also consider setting up a testing service for home employees so exposures can be quickly identified and measures taken to close holes that put both employer and employee at risk. Not all victims have been identified to date. The scam is reported to have incorporated trusted names of uninvolved firms into domain names of fraudulent sites to give the illusion of trust, including Bloomberg, Eurobonds and Euroclear Bank. Commentary This is a new type of fraud on the Internet. Through the unauthorized use of names of trusted sources to set up an image of trust, thieves successfully convinced victims to purchase banking guarantees that were completely fraudulent.
People are by nature mostly trusting.
And this fraud was successful because the trustworthiness of the online entity seemed credible to the victims. The Internet is not equipped yet to resolve one of the most difficult issues of all - how to verify the online identity of remote parties involved in a relationship of trust. Several new technologies are emerging that will get quite a boost from this kind of fraud. Early adopters of this technology will find some competitive advantage as fraud of this magnitude erodes the trust of current methods for contractual exchange online. Receive this digest by email.