Beware of the Dark Alleyways on the Internet

by Amelia Painter ©2004

     Like the dirty and dark alleyways of a large city, the Internet can be the home of individuals with criminal intent. Internet Scams are a dime a dozen. Internet scams don't only waste your time but can really cut into your pocket book as well.

     In response to a rapidly growing number of complaints concerning a practice called "Web site cramming," the Federal Trade Commission has issued a warning to small businesses: Read your phone bill carefully and check for unauthorized charges.

    Web site cramming -- billing for unauthorized Internet services via phone bills -- is a growing problem for small businesses moving online. Cramming complaints to the FTC from small business owners grew to more than 10,000 by March 1999 from zero just two years earlier. But the FTC says the problem may be much larger because not all businesses have identified the unauthorized charges.

    "Thousands of small businesses have been ambushed by Internet crammers -- many signed up for a trial offer, but they were billed for a service that was supposed to be free."

Change in Billing Law Opened Scam Door

    Charging for services on a phone bill used to be something only the telephone company could do, when it was a monopoly. Now, anyone can charge consumers on their phone bill so long as they have an agreement with the local telephone company.

    One of the unfortunate consequences is that scam artists figured out they could make charges on phone bills that the subscriber did not authorize. Before you try or buy any business opportunity that is Internet based, you should do the following:

1. Make sure they list contact information. Names of people who are involved with the site, phone numbers, an address, etc. And, don’t just look at the information, make direct contact with another human prior to doing any type of business with an unknown firm – no matter what they are offering.
2. Go to a few sites that report on scams (like www.ftc.gov/or http://www.pueblo.gsa.gov/scamsresources.htm).
3. Do not reply to any e-mail that you are not sure of or that you suspect is spam. The sender with criminal intent may just be waiting for replies so they can verify that an e-mail address is valid.
4. Lastly, go to a search engine (we like www.Altavista.com or a meta-engine like www.Metacrawler.com) and see if you can find any complaints about the company. This is hardly a science and I know that people tend to complain more than they praise, but you might be able to find something out. If you find one or two people complaining, ignore it. If you find 20 or 30, something is not right.

Good luck in your online adventure. The Internet can be a wonderful resource and gateway to new experiences, but treat it as you would any dark alley where the unknown could become a living nightmare.

Return to Newsletters