Surfing the Internet

The number of internet users increases each day, according to industry sources. All are considered potential targets from the scam artists' point of view.

Advertising on Online Services. Most questionable online advertising is either "classified advertising" or "disguised advertising."

Classified Advertising

No matter where you find classified ads online, you are likely to find some false and misleading claims. For example, many classified ads promote quick and easy weight-loss products and programs. It is unlikely that any of them can deliver what they promise.

Another hot area in the classifieds is "business opportunities." Traditional "work-at-home" schemes, such as making handcrafts or stuffing envelopes, have been replaced by offers to "use your home PC to make money fast in your spare time." Other ads encourage consumers to invest in communications technologies, such as "900" number telephone services, with promises of high returns and low-risk. The investment attraction of "900" number pay-per-call services is the potentially high profit to be made -- 20 percent or more -- from the $3-to-$5 a minute fees charged to callers by the 900 service provider. The marketers promises on these investments are likely to be false.

Disguised Advertising

"Disguised advertising," may be difficult to recognize. Bulletin boards and chat forums may include areas where comments about the quality or performance of products or services may be ads in disguise.

The Internet and commercial online services provide bulletin boards where interested parties can exchange information in general topic areas. In some cases, individuals contributing to the bulletin board have financial ties to companies or businesses that sell products or services related to the bulletin board subject area. This may not be obvious to the online user. What may appear to be an open discussion could be a sales pitch in disguise. Because the identities or affiliations of online bulletin board operators and participants may not be known, it could be difficult to detect disguised advertising.

Some commercial online services also provide live discussion groups called "chat rooms" or "chat forums." Service subscribers can "drop by" for an online conversation by typing in their comments. These forums provide the chance to discuss a variety of subjects, including products and services. Some marketers have used these chat forums to promote their products without disclosing their interests.

Tip-offs to Fraud.
Read online ads and "conversations" with a healthy dose of skepticism. The same signals that tip you off to potential frauds in print and on television are apparent in cyberspace. Here are some warning signs of questionable online advertising:

•Overstated claims of product effectiveness. Use of hype titles and frequent use of the word "hot" to describe an investment opportunity can indicate a scam.

•Exaggerated claims of potential earnings or profit.

•Claims of "inside" information.

•"Pump and Dump" promotions of cheap stocks promising high returns.

•Promotions for exotic investments such as ostrich farming, gold mining, or wireless
cable TV.

Unsolicited e-mail: "Spam." If you're an e-mail user, you may have noticed that you've become very popular. But your electronic in-box may not be full of greetings from long-lost friends. Instead, it's piled high with commercial messages from people you've never heard of, many of whom are asking for your money. Before you respond to commercial e-mail, the FTC suggests that you:

•Treat commercial e-mail solicitations the same way you would treat an unsolicited telemarketing sales call. Don't believe promises from strangers.

•Greet money-making opportunities that arrive at your in-box with skepticism. Most of the time, these are old-fashioned scams delivered via the newest technology.

•Don't believe e-mails that say you can make money by sending money to people on a list. Chain-letter schemes are illegal and nearly everyone who participates in them loses money.

•Don't pay money into a pyramid scheme with the hope of making money by recruiting others into the scheme. Pyramid schemes are illegal and big money losers.

•Ignore offers to erase accurate negative information from your credit record. There's no legal way to do that. Remember, legitimate banks don't issue credit cards without first checking your credit.

Cybershopping- What You Need to Know.
If you surf the Internet, then you're probably familiar with the terms "digital stores" and "online malls." Thousands of consumers are now taking advantage of the opportunity to shop from the comfort of their homes via personal computer. The Better Business Bureau offers shoppers the following tips to ensure that your cybershopping experience is a satisfying one:

•If you're interested in trying a new merchant, one that you are not familiar with, ask the merchant for its physical location (address and phone number) so that you can check on its reliability with organizations like the Better Business Bureau. For the phone number or address of your nearest BBB, visit the BBB's Web site at www.bbb.org.

•Determine the company's refund and return policies before you place an order.

•Never give out your Internet password. When creating a password, avoid using established numbers, such as your house number, birth date, or your telephone or Social Security numbers. If the site asks you to create an account with a password, never use the same password you use for other accounts or sites.

•Be cautious if you're asked to supply personal information, such as your Social Security number or personal bank account information, to conduct a transaction. Personal information is rarely necessary and should raise a red flag.

•Pay attention to the "address" of the site - its Uniform Resource Locator (URL).The URL ensures that you are dealing with the right company. It's a good idea to print out a copy of your order and confirmation number for your records.

•Know your rights. The same laws that protect you when you shop by phone or mail apply when you shop in cyberspace. Under the law, a company must ship your order within the time stated in its ads. If no time is promised, the company should ship your order within 30 days after receiving it, or give you an "option notice."

•If you decide to pay by credit card or charge card, your transaction will be protected by the Fair Credit Billing Act. If you're not comfortable entering your credit or charge card account number online, call it in to the company's 800 number or fax it.

If you have been a victim of a "junk e-mail" scam or Internet related fraud, contact your BBB, Internet service provider, your local consumer protection agency, or your state Attorney Generals office. You can also send complaints of Internet fraud to the Federal Trade Commission. Visit their website www.ftc.gov for more information.

This information is general in nature and is not intended as a reliability report on any company, product, or service.