June 14, 2002

Be Aware of Internet Fraud

In a recent report by the National Consumer League’s Internet Fraud Watch, the IFW warns consumers about the danger that lurks when using your email. Based on consumers’ reports last year, many dangerous offers like the fast growing Nigerian money offers came by email.

Additionally, 27,000 out of a pool of 28,655 respondents that participated in a poll conducted by AT&T Worldnet Services Web site, said they received numerous unsolicited email offers which IFW warns could be scams. 32 percent of the respondents said they received credit card offers through email, 30 percent say they received loan offers, 30 percent received offers to make money working at home, 27 percent received invitations to visit X-rated Web sites, and 12 percent received Nigerian money offers. Only six percent of the respondents polled, said they never received any of these e-mails.

"While not all e-mails may not be fraudulent, consumers should be aware of anyone who promises them easy money, free services that may have hidden costs, and cheap prices on goods," says Debra Pankow, North Dakota State University Extension, family economics specialist.

The key is being able to identify them. The National consumers League has issued a list of the top 10 Internet fraud scams to watch out for.

• Online auctions - items that were misrepresented or never received after being sold to the highest bidder in a virtual auction.
• General merchandise - anything sold on a Web site (not an auction or computer software) that was misrepresented or never received.
• Nigerian money offers - request from someone claiming to need help to transfer a fortune from Africa.
• Computer equipment and software - equipment (not sold on an auction) that was either never received or misrepresented.
• Internet access services - charges from Internet service providers that were never ordered or received.
• Information and adult services - charges to credit cards or phone bills for services never provided or misrepresented.
• Work at home schemes - kits sold with false promises of profits.
• Advance fee loans - empty promises of loans requiring payment of application and other fees in advance.
• Credit card offers - illegitimate promises of credit cards that require up-front payment of application and other fees.
• Business opportunities and franchise - exaggerated claims of potential profits through investments in prepackaged businesses or franchises.

"In some of the most frequently reported Internet frauds, most of the offers came by email. Over half of Internet fraud victims in 2001 were under 40, which is consistent with the average age of all Internet users (30)," says Pankow.

If you are interested in how to protect yourself from Internet fraud, visit the National Consumer League web site at http://www.natlconsumersleague.org/ or contact your local extension agent or Debra Pankow at (701) 231-8593 for more details.

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Source: Debra Pankow, (701) 231-8593, dpankow@ndsuext.nodak.edu
Editor: Richard Mattern, (701) 231-6136, Richhard.Mattern@ndsuext.nodak.edu
Writer: JJ Camarillo, (701) 231-8371, jcamaril@ndsuext.nodak.edu