The 10 most common internet frauds

The 10 most common internet frauds

Listed below is a summary from the US Federal Trade Commission of the most common crimes
on the Internet as of 2005.

1. Internet  Auctions:   Shop  in a  "virtual  marketplace"   that  offers  a huge  selection of
products at great deals.  After sending their money, consumers receive an item that is
less valuable than promised, or, worse yet, nothing at all.

2. Internet  Access  Services:   Free money,   simply   for  cashing a check.  Consumers  are
"trapped"   into  long-term contracts   for   Internet  access or  another  web service,  with
substantial penalties for cancellation or early termination.

3. Credit  Card Fraud:  Surf   the  Internet  and view adult   images  online  for   free,   just   for
sharing your  credit  card number   to prove you're over  18.  Fraudulent  promoters  use
their credit card numbers to run up charges on the cards.

4. International  Modem Dialing: Get free access to adult material and pornography by
downloading a "viewer" or "dialer" computer program.  Consumers complained about
exorbitant   long-distance   charges   on   their   phone  bill.   Through   the   program,   their
modem  is disconnected,  then reconnected to the  Internet  through an  international
long-distance number.

5. Web Cramming: Get a free custom-designed website for a 30-day trial period, with no
obligation to continue.  Consumers are charged on their telephone bills or received a
separate  invoice,  even  if  they never accepted the offer  or  agreed to continue the
service after the trial period.

6. Multilevel Marketing Plans/ Pyramids: Make money through the products and services
you sell as well as those sold by the people you recruit into the program.   Consumers
say   that   they've  bought   into  plans  and programs,  but   their  customers  are  other
distributors, not the general public.

7. Travel and Vacation:   Get a luxurious trip with lots of "extras" at a bargain-basement
price.  Companies  deliver   lower-quality accommodations  and  services   than  they've
advertised or no trip at all. Others impose hidden charges or additional requirements
after consumers have paid.

8. Business   Opportunities:   Taken   in   by   promises   about   potential   earnings,   many
consumers have invested in a "biz op" that turned out to be a "biz flop." There was no
evidence to back up the earnings claims.

9. Investments:  Make an initial  investment  in a day trading system or service and you'll
quickly realize huge returns.  But big profits always mean big risk. Consumers have lost
money  to programs   that  claim  to be able  to predict   the market  with 100 percent
accuracy.

10. Health Care Products/Services: Claims for "miracle" products and treatments convince
consumers that their health problems can be cured. But people with serious illnesses
who put their hopes in these offers might delay getting the health care they need.