An Examination of Internet Fraud Occurrences Kai S. Koong The University of Texas - Pan American Computer Information Systems and Quantitative Methods Department 1201 West University Drive, Edinburg, Texas 78541-2999, USA Phone: 956-381-3353 Fax: 956-381-3367 E-mail: koongk@utpa.edu Lai C. Liu The University of Texas - Pan American Computer Information Systems and Quantitative Methods Department 1201 West University Drive, Edinburg, Texas 78541-2999, USA Phone: 956-381-3353 Fax: 956-381-3367 E-mail: liul@utpa.edu June Wei University of West Florida Department of Management and Management Information Systems Pensacola, Florida 32514, USA Phone: 850-474-2316 E-mail: jwei@uwf.edu ABSTRACT As a result of Internet technology, transactions processing has undergone remarkable changes. On the positive side, e-commerce, m-commerce, and l-commerce have become a reality in the electronic marketplace. However, one of the undesirable outcomes of the Internet is its use for criminal acts. This study examines the proliferation of Internet fraud for the period 1998 through 2002. Specifically, the variables examined included the categories of online fraud, payment methods used for committing those frauds, the affected victims, and trends, if any. The results of this study should be of interest to all types of individuals involved in law enforcement, computer and information systems security designers, and especially consumers of online systems. Computing educators in particular will find the outcomes reported in this study useful because they can be used to develop and design curriculum and course content that can help minimize online fraud. In addition, the exhibited trends on Internet fraud and the major means used by criminals can be used to educate the growing number of students who are using the Internet for their shopping needs as well as other personal activities. INTRODUCTION Three major developments around the globe have enabled businesses to better reach prospective consumers. First, computer ownership around the globe has exceeded 625 million. The United States alone has about a third of those computers (Petska, 2001). Second, advances in Internet related technologies have enabled businesses to better communicate services and products to 441