A Botnet is a large network of hijacked computers under the remote control of hackers via a net-based command and control system.  Hackers typically ‘infect’ victim computers through the use of ‘malware’ such as e-mail viruses.  It is also common for computers to become infected when downloading programs or even simply surfing the net.

Illustrated operation of a Botnet

Hackers maliciously alter the original content of a website belonging to a specific organization, company or individual. The usual practice is to replace the original webpage with other content created by the hackers to undermine the normal functioning of the website, embarrass or harm the reputation of the website owner, or in extreme cases cause financial loss.

What is Internet fraud?
Internet (or online) fraud includes, but is not limited to, the following kinds of cyber scams and swindles:

Bogus Websites

Swindlers send out ‘phishing’ e-mails that purport to be official online correspondence from a company or bank.  Victims are then misdirected to a bogus website (the bogus website often looks exactly the same as the legitimate website, sometimes even with a similar domain name).

Victims are tricked into thinking they are logging into a real website, and enter their personal information as prompted (e.g. user ID, PIN number, name, address, credit card number, etc).  This personal information is then misused in a variety of ways to cause monetary loss to the victim or bank.

Internet Commercial Fraud
Swindlers hide behind the anonymity of the internet to deceive victims by appearing to be a legitimate company to promote their bogus products or services.  Victims end up paying for goods or services that are non-existent, sub-standard or vastly overpriced.  

Such swindles are usually perpetrated by email and often include extravagant claims such as exclusive and profitable investment opportunities, luxurious gifts in return for small purchases, and ‘special’ or ‘time-limited’ offers urging the victims to act fast.

Internet Auction Fraud
With internet auction fraud, goods ordered by customers are not delivered as promised after payment is made.  Conversely, online sellers fail to receive any money after delivery is made to the buyer.

Online Sweepstake
Victims are informed via e-mail that they have won a large amount of money through a lottery or lucky draw.  However, victims can only redeem their prize upon payment of “administration fees” or “handling charges”.  Of course, the so-called prize is never delivered once victims have paid the required fees.

Identity Theft

Identity theft involves stealing or hijacking the identity of another person or company for illegal activities. Thieves target personal information such as name, address, date of birth, Hong Kong identity card number, maiden name, e-mail address, telephone number, etc.

Identity thieves can use this information to take over the victim's financial accounts, open new bank accounts, transfer bank balances, apply for loans, credit cards and other services, purchase vehicles, book luxury vacations, etc.

Abuse of Online Game Service

Such abuse can include:

a) Illegal access to an online game account
b) Illegal transfer of an online game account
c) Deception during the transaction of “accounts”, “roles”, “props” or “instruments”
d) Selling a third-party “account” or “role” to victims using deceptive tactics
e) Failing to return borrowed “props” or “ instruments”

Illegal materials posted on forums and blogs may include content containing triad-related, obscene, intimidating, dishonest or deceptive and outrageous statements or other forms of expression.

Instant Messaging tools greatly facilitate communication amongst people.  When misused, however, they provide an easy channel for criminals to contact with unsuspecting and/or young victims.

Criminals can take advantage of victims they meet through IM to commit serious crimes such as rape, indecent assault, unlawful sexual intercourse, robbery etc.