The FBI and U.S. Justice Department recently announced "Operation Cyber Loss," a nationwide crackdown on Web-based scams. Deputy U.S. Attorney General Larry Thompson said that in the month of May federal, state and local law enforcers have executed search warrants and issued criminal indictments in a crackdown "of unprecedented scope against Internet fraud." The alleged scams include pyramid schemes, phony auctions, sham services, money laundering, wire and mail fraud, and intellectual property rights violations that, according to federal agents, have cheated 56,000 people and businesses out of $117 million. According to Hughes & Luce attorney Nathaniel Chapin, "the level of organization of the operation across state borders shows that law enforcement, at least for the time being, is catching up with the online marketplace."
