International Internet regulation is failing to keep up with the technology and consumers are suffering the consequences. Internet Fraud Watch, a consumer watchdog group in Washington, D.C., reports that the number of online fraud complaints leaped from 1,280 in 1997 to 7,752 last year.

They expect to receive more than 10,000 complaints in total this year. Form of payment seems to make a difference in terms of fraudulent transactions - credit cards were defrauded in 8 per cent of transactions while cheques and money orders made up 38 per cent and 33 per cent respectively.