Cost of Internet fraud on steep rise

US citizens reported losing more than $550 million in 2009 in Internet fraud, falling prey to a variety of increasingly sophisticated scams, according to a report by the Internet Crime Complaint Center.

The loss was more than twice that reported in 2008, according to the agency, a partnership of the FBI and the privately funded National White Collar Crime Center. The center, based in West Virginia, tracks Internet crime around the world. "Criminals are continuing to take full advantage of the anonymity afforded them by the Internet. They are also developing increasingly sophisticated means of defrauding unsuspecting consumers," said Donald Brackman, the center's director. Part of the increase can be attributed to a change that allowed more cases to be included, but another possible factor was the increased use of the Internet, which has broadened the pool of perpetrators and victims, said Charles Pavelites, an FBI special agent.