Ten tips

By LAURA T. COFFEY

© St. Petersburg Times, published January 14, 2001

Top 10 "dot cons' to avoid on the Net

High-tech con artists use the Internet to defraud unwary consumers every day through bulk e-mail and bogus Web sites. Consider these tips on how to avoid the most common online scams.

1. ANALYZE AUCTION PROMISES. If you bid for an item through an online auction site, there's a chance you may end up with something worth much less than what was promised or with nothing at all. Investigate the seller's reputation, and be sure to pay with a credit card or use an escrow service.

2. BE CAREFUL WITH INTERNET ACCESS SERVICES. Such services promise "free money" in exchange for cashing a check, but consumers have found themselves locked into long-term contracts for Internet access with high fees if they cancel. Read both sides of such checks carefully, and examine the conditions that will apply if you cash the check.

3. STEER CLEAR OF CREDIT CARD FRAUD. Some consumers have made the mistake of sharing their credit card numbers to prove they were over 18 so they could view pornography online for free. Dispute any unauthorized charges that appear on your credit card bill.

4. BEWARE INTERNATIONAL MODEM DIALING. Some seekers of free adult material have downloaded "viewer" or "dialer" computer programs. Without realizing it, their modems have been disconnected and then reconnected through an international long-distance number. Don't download programs without reading the disclosures, and check your phone bill for any unauthorized charges.

5. WATCH OUT FOR WEB CRAMMING. Some people have accepted offers for free custom-designed Web sites for 30-day trial periods, then discovered high charges on their phone bills. Examine your bill carefully and dispute any charges you don't understand.

6. SHUN PYRAMID SCHEMES. Stay away from plans that ask you to recruit distributors or buy pricey inventory. Such plans usually involve selling products or services only to distributors such as yourself, so you won't earn any money.

7. TREAD CAREFULLY WITH "LUXURY" TRAVEL PACKAGES. Don't be fooled by promises of lavish trips at bargain-basement prices. Get references for the travel company, and insist on seeing details of the trip in writing, including the cancellation policy.

8. BE WARY OF SO-CALLED "BUSINESS OPPORTUNITIES." Don't be duped by promises of earning big money by being your own boss. Talk to others who got started through the same company, get all promises in writing and have an attorney examine the contract.

9. AVOID INVESTMENTS THAT SOUND TOO GOOD TO BE TRUE. Some consumers have made investments in fraudulent day-trading systems or services, convinced that they would see big returns. Investigate the promoter's reputation with state and federal securities and commodities regulators.

10. BE SKEPTICAL ABOUT HEALTH CARE CLAIMS. Consult with a doctor before buying a "cure-all" that claims to offer a fast cure to a serious illness.

Sources: Federal Trade Commission (http://www.ftc.gov) and Better Business Bureau (http://www.bbb.org)

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