Scope Out the Five Most Notorious Online Scams
By: Bean Jones
Click with caution. Online shopping is great--but look out for scammers who are out to rob shoppers.
These days, shopping online has become a way of life for a good number of people. That's no surprise. Apparently, the joys of getting "retail therapy" while in your pajamas is irresistible.
Hot Sites
Sites such as eBay and Craigslist are at the forefront of the online shopping industry. These sites--along with a host of others--hold various auctions that promise users the very best bargains for a gamut of products.
There is no doubt that the advent of online shopping has been very beneficial--especially to small businesses owners who don't want to be hobbled by overhead costs.
But, of course, there's a flip side to this flourishing economy.
Criminal Minds
"Con artists are alive and well on the Web, working a wide variety of scams on people who use online sites to buy and sell goods," warns Matthew Weinberger in "Online Crooks Never Stop Trying to Rip You Off."
Weinberger goes on to list the most common rip-off scenarios online:
1. Shill Deal
A scammer will sign up for an online shopping site and then post an item for auction. Then, using bogus accounts, he himself will keep bidding on the said item to drive up its price to an inflated amount. This act is called shill bidding. Buyers will be tricked into thinking that the item is sought-after.2. Second Chance Scheme
After an auction for a big-ticket item--such as a car--scam artists track down second and third place bidders. They will then offer the runner-up bidders same product at a reduced price. In reality, they don't actually have the item. Thus, they ask for payment upfront and then disappear.3. Escrow Fraud
A "seller" will tell you to put money into an online escrow account, which functions like a savings account. The account is tapped as a measure to prevent fraud on the part of buyers and sellers who are geographically distant. Thus, the scammer tells you to deposit to a fake escrow service that he himself runs. You'll never see your money again or any merchandise. (Check out Escrow.com for tips on how to identify fraudulent escrow sites.)
4. Fake Fronts
Posing as sellers, scam artists pass off counterfeit stuff as genuine merchandise. For instance, there have been buyers who receive knock-off versions of sports apparel and pirated software.5. Shipping Surprise
Scammers who charge $20 for shipping a $5 book have victimized some unfortunate buyers. They often claim that the astronomical shipping cost was included in the fine print of the auction notice.
Safe Surfing
It pays to be cautious when it comes to spending money online. In any case, reputable sites such as eBay and Craigslist usually offer some type of insurance for deals gone wrong. But, they're not responsible for policing each and every transaction that happens on their sites.
To be on the safe side, do intensive research before you make a purchase. After all, despite the presence of criminal elements on the Web, there are still many online companies that give honest-to-goodness service and deliver products as promised.
Comments
You left out one of the most common frauds. A "buyer" will send a "check" for much more than the product being purchased and ask the sucker,er excuse me, the seller to cash the check and send them the difference. They have numerous and varied reasons for doing it this way.
I have personally had 2 such experiences. Both times I just shredded the check. The last time I then sent the "buyer" an email telling him he had just wasted the FedEx costs of sending me the check since I had not intention of banking it or sending him any money. I never heard from him again.
You left something else of the scamming list. Payment by cheques. I run an online furniture business from Thailand and had a great order come through. I made the order put it all into containers, recieved the cheque from the customer, sent the items. 6 Weeks later the bank told me that I had to repay them all the money back as the cheque was a stolen cheque. It almost destroyed my company and alot of money was lost, tried to get my things back again but the customer (so called) was no longer there. So payments by cheque is something that is very wide spread at the moment is growing. Cheques are being stolen to order.
If accepting a cheque do not send anything until the cheque has been cleared by the bank. It costs to have this done but beter than loosing thousands of Dollars as I did.
It is so easy to fall for a scam and we all will at sometime sooner or later, so being extra carefull is the policy. Something to always remember and I have this on my screen reminding me everyday, "If it is too good to be true it usually is"
Thanks for that it is very helpful.
This is just one of the reason's Mark Joyner is the best.He is amazing.Still reading "the book" love it.( ofcourse I always knew those things just didnt know how to use them*smile* )
There's another one that should probably be listed. It involves getting people to work for what appears as a legitimate business.
Your job that you are contracted to do, is to receive packages at your address for an international shipping company and they pay you $60 for every package you receive. You then remove all shipping and other information, making the merchandise used and resend it to an overseas location. There is no money out of your pocket and they do pay you by Western Union just as they promise.
The problem is, you are the one committing the actual fraud and making it possible for them to get away with ID Theft.
Here is a the main website being used to perpetuate this ID Theft scam: http://www.lemanandpartners.org
All order activities related to the ID Theft of other Americans are on this site: http://www.shipprocess.com - It has tracking information for all the shipping and receiving of every package in the US.
Another scam I've noticed recently is in the area of home theater systems or surround sound systems. A number of people have been selling "DaVinci, Olin Ross, and others" as $2000 systems, for a fraction of the cost. These are systems and/or just speakers known as "the white van scam". I researched the speakers, and found all the info online. After reporting my suspicions to EBay, they thanked me, and removed the auctions. We have to look out for each other online!
Thanks Mark for being a voice fighting this growing problem.
I like many have been a victim of identity theft. This happened by a cell phone picture that was taken while I was making a purchase.
The more insites we all provide, the fewer victims online and off.
In my Opinion online dating scams and fraud are almost as old as Internet dating itself.