Internet ScamBusters (tm)
The #1 Publication on Internet Fraud

By Audri and Jim Lanford
Copyright (c) 2002 Audri and Jim Lanford

Issue #50  May 13, 2002

This month we're going to share some very chilling statistics
about online fraud with you, provide an update on identity
theft (including telling you about an eBay scam that has
nothing to do with online auctions), and expose an IRS lawsuit
scam that preys on people's anger at the IRS.

But first, a warm welcome to our 20,000+ new subscribers!

And, we'd like to ask that you check out the offers at the end
of this ezine. We are announcing a breakthrough program to
help business owners get more customers -- and we're REALLY
excited about it. The marketing approach is unique -- and
definitely worth a visit to the site. You'll also find info
about one of our newest ebooks.

As you know, we do Internet ScamBusters as a public service,
and these offers help pay a small portion of the expenses to
publish the #1 publication on Internet fraud.  :)

OK, let's get started...

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Internet ScamBusters Snippets
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Online Customers and Merchants Lose Huge Amounts to Fraud

In 2001, 5.2% of online consumers fell victim to credit card
fraud, according to a recent survey by GartnerG2. Online
merchants lost a staggering $700 million to fraud in 2001 -
over 1% of total annual online sales. Online fraud losses were
19 times as high as offline fraud, according to the study.

Visit:

http://www.internetweek.com/story/INW20020304S0005


~~~

Excellent Article on Internet Fraud

One of the best recent articles we've seen on Internet fraud
appeared in the New York Times Week in Review. The article was
written by Sam Lubell, and you'll find Internet ScamBusters
referred to in the article.

Visit:

http://www.nytimes.com/2002/04/14/weekinreview/14WORD.html

(You'll need to register to read this article - it is free to
register.)

~~~

Identity Theft - Avoid These New Scams

Identity theft may be as old as Internet commerce, but crooks
still come up with new ways to trick unsuspecting people into
giving out sensitive personal information like credit card or
Social Security numbers. Here's a look at three of the latest
scams.

1. Bank of America Scam

The scam: Someone posing as a Bank of America associate sent
out a fraudulent email asking BoA customers to enter personal
financial information on a fake Web site posing as a BoA Web
site. Fortunately, the bank became aware of this email within
hours, and authorities quickly shut the scam site down.

The truth: Like most banks, BoA does not contact customers out
of the blue to verify personal financial information. You may
be asked to verify such information if you call the bank about
your banking matters.

What to do: If someone - anyone - contacts you by phone or
email, asking you for sensitive personal information, be very
wary. Contact the company they claim to represent directly,
using a phone number or email address from the company's Web
site, and confirm the story. Never be in a rush to give out
your information until you know it's safe.

2. eBay Scam

The scam: You receive an email stating that your order has
been completed and mailed, and that your credit card has been
charged for your purchase. Of course, you have not bid on or
won the auction for the item in the email. To cancel the
order, you are instructed to visit a Web site and enter your
account information and Social Security Number. The scammer
uses this dummy Web site to steal your information.

The truth: eBay never asks its registered users for their
personal information by email, and it makes this point very
clear on its Web site and discussion boards.

What to do: If you receive an odd request that looks like it
comes from eBay, contact their Safe Harbor, which has
departments dedicated to fraud protection, fraud prevention,
and investigations.

Visit 
http://pages.ebay.com/help/community/index.html


3. PayPal Scam

The scam: You have a PayPal account. You receive an email that
promises you a small payment if you visit the Web site and
update your account (including, of course, your credit card
information). The cited Web site is fraudulent, and the
scammer steals your information.

The truth: PayPal representatives will never ask users for
their password or other sensitive information.

What to do: As PayPal's Security Tips note, "The only site you
should ever type your username and password into is at
www.paypal.com." If you receive suspicious emails, never click
any Web site links they contain.

Visit

http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/fraud-prevention-outside


~~~

IRS Lawsuit Scam

We received a long, "interesting" email the other day. It
seems that an enterprising group of individuals is planning to
bring a class action suit against the U.S. Internal Revenue
Service for fraud, claiming that the IRS's tax collection
since 1971 has been illegal, and that participants in the
class action can expect to receive all their taxes back, plus
3% compounded interest.

All you have to do is sign up on the Web site and pay for
access to legal documents, pay to become part of the class
action lawsuit, and...

Okay, folks, we think we know the drill here. This is a scam
that plays on people's anger at the IRS. But don't be fooled.

Here are some warning signs that this scam will be more taxing
than rewarding to your bank account:

- If such a monumental class action lawsuit were in progress,
you'd hear about it on CNN, or USA Today, or the New York
Times. Not through a rambling email that takes you to a
poorly-designed Web site.

- You should NEVER pay money to join a class-action lawsuit.

- The email tells you to sign up at the Web site and enter
specific referral IDs. This is a hallmark of multi-level
marketing (MLM). Class action lawsuits are never MLM programs.

If you think you may have been physically or otherwise harmed
by a product or service, visit ClassActionAmerica.com instead.
It describes current class-action suits, lets you know if you
qualify, and how to participate.

Visit 
http://ClassactionAmerica.com


~~~
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