Bill would impose heavy fine, jail time for Internet fraud

NASHVILLE, Tenn. Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. — Fraudulent use of the Internet or other electronic means to obtain information could result in six months in jail or a fine of up to $500,000 under legislation unanimously passed Monday by the Senate.

The bill, sponsored by Sen. Tim Burchett, seeks to eliminate “phishing” schemes in Tennessee.

The activity typically involves baiting victims with e-mails purportedly from legitimate online businesses. The e-mails direct recipients to bogus Web sites, where they are asked to re-input information such as credit card numbers and passwords.

Once that information is obtained, Burchett said the victims’ bank accounts are often milked and the money transferred to offshore accounts. Elderly residents are usually the main targets, Burchett said.

“Folks are so embarrassed they got took that they won’t admit to it,” said the Knoxville Republican. “Everybody I know that fools with the Internet has been accessed by one of these people.”

Several senators signed on to Burchett’s bill before it passed, and he expects little opposition in the House.

“We’ve all had family members or friends who’ve been victims,” said Sen. Jamie Woodson, R-Knoxville, and one of the bill’s co-sponsors.

To avoid such identity theft, experts warn that users should be wary of giving out any personal information via e-mail or pop-up ads, especially if someone contacts them unexpectedly. Users also should be wary of clicking on e-mail links, which could divert a user to a malicious site that will then steal personal information.