Fraud is rampant on the internet. It is everywhere that you look. When you
are lurking in newsgroups you will find hundreds of messages inviting you to
spend money here, there and everywhere. You'll get email demanding your
time, attention, and, of course, money for something. Surfing the web will
turn up many sites with some incredible offers which, of course, just happen
to require your credit card number - but don't worry, they "just need it to
validate your age" (or whatever) - DON'T GIVE THEM YOUR CREDIT CARD NUMBER
UNLESS YOU ABSOLUTELY KNOW IT'S SAFE.
The web is a media of communication. It allows everyone to communicate with
anyone for the price of a computer, phone line and internet service - and
even most of that can be gotten for free if you try. This is perhaps the
most wonderful invention in the history of man to date for it's sheer power
of getting us all just to talk to each other, but there are dangers.
In a way, it's just like any other part of life. However, what the internet
does is to allow you to communicate (and be communicated with) exceptionally
fast. Where else could you surf a hundred sites, receive 200 emails and
examine 250 newsgroup messages all in one evening?
Some of the schemes that you will need to be on the lookout for include:
Pyramid schemes galore. These are the things that say "send a dollar to a
bunch of people with your name and address". They are all illegal (in spite
of what they claim) and unethical. You will get ripped off and if you
partake you are breaking the law.
http://www.internet-tips.net/Moneymaking/chain.htm
Startup companies which offer stock or "points" - these are not frauds, per
say, but the vast majority of these will never pay anything to anyone. For
example, many pay-to-surf programs at their beginning will not pay anything.
Instead, you will get points or stock, with the promise of money down the
road if they (a) go public or (b) get lots of people signed up or whatever.
Beware - you are taking a risk to never get anything.
Credit card fraud - be very careful with your credit card number on the web.
DO NOT EVER send it in email or post it in a newsgroup. And DO NOT USE YOUR
DEBIT CARD FOR ANYTHING ON THE WEB. That comes directly out of your checking
account - you may get it back from the bank if you can prove fraud, but at
least with a normal credit card you are risking the banks money and not your
own.
Multi-Level Marking (MLM) - I'm sure there are good MLM companies out there,
but they really only tend to benefit those who get in early. Those on the
bottom wind up supporting those on top, then the whole thing loses steam and
falls apart. Of course, those who do get in early make a lot of money.
http://www.internet-tips.net/Moneymaking/mlm.htm
Pay-To-whatever - There are some pay-to-do-something companies that are
legitimate. My experience is that the vast majority of these have minimal
financing, an exceptionally poor business model and little, if any,
likelihood of actually paying anything to anyone. Usually there is not
fraudulent intent - just a lot of silliness and idiocy.
http://www.internet-tips.net/Moneymaking/paidchat.htm
http://www.internet-tips.net/Moneymaking/paidclick.htm
http://www.internet-tips.net/Moneymaking/paidemail.htm
http://www.internet-tips.net/Moneymaking/paidradio.htm
http://www.internet-tips.net/Moneymaking/paidshop.htm
http://www.internet-tips.net/Moneymaking/paidsurf.htm
http://www.internet-tips.net/Moneymaking/paidsurveys.htm
Cons - There are some unbelievable cons out there on the internet and in the
real world. The Nigerian scam is a particularly nasty example. In this scam,
you receive a letter or email which tries to get you involved in "helping"
some ex-Nigerian official by giving him your bank account number. Get
involved and you will lose money and perhaps more than that.
http://www.internet-tips.net/Moneymaking/809areacode.htm
http://www.internet-tips.net/Moneymaking/donlapre.htm
http://www.internet-tips.net/Moneymaking/nigerian.htm
Identify Theft - Perhaps the most significant threat on the internet is
identify theft. This is simply the stealing of your social security number
(and other identifying information) with the intention of using it to obtain
credit. Give out your information to the wrong person and you could find
your credit rating is destroyed.
Sweepstakes - There is no doubt that there are a tremendous number of
contests and sweepstakes which are perfectly valid. I even personally know
of some people who have won. However, many sweepstakes are thinly veiled
attempts to invade your privacy while making lots of money at the expense of
your time. For most of these, I would not bother. Not exactly fraud, but
skating on thin ice.
http://www.internet-tips.net/Moneymaking/sweepstakes.htm
For more information, check out Scams And Frauds
http://www.internet-tips.net/Moneymaking/scams.htm
About the Author
Richard Lowe Jr. is the webmaster of Internet Tips And Secrets. This
website includes over 1,000 free articles to improve your internet
profits, enjoyment and knowledge.
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