Identity Theft Heads the FTC's Top 10 List  by Grandpa Chuck

In yesterday’s mail, the AARP Bulletin had an article on “negative option marketing” where consumers accept a “free offer” or agree to try a product, like a magazine or book club membership, on a trial basis.  The marketers then continue to send merchandise and charge the consumer’s credit card until consumers cancel in writing or phone.  

The article also talked about a Federal Trade Commission Top 10 List of consumer complaints.   In checking the FTC’s web site I was surprised that “Identity Theft” accounted for 42 percent of the complaints.  The top 10 list of consumer fraud complaints includes:

Identity Theft (42%)

Internet Auctions (10%)

Internet Services and Computer Complaints (7%)

Shop-at-Home and Catalog Offers (6%)

Advance Fee Loans and Credit Protection (5%)

Prizes/Sweepstakes/Gifts (4%)

Business Opportunities and Work at Home Plans (4%) Foreign Money Offers (4%) Magazines and Buyers Clubs (3%)

Telephone Pay-Per-Call/Information Services (2%)

The FTC list of  “Dot Cons” surprised me a little.  Some of consumer fraud complaints from online users include:

Internet Auctions

Internet Access Services

Credit Card Fraud

International Modem Dialing

Web Cramming

Multilevel Marketing Plans/ Pyramids

Travel and Vacation

Business Opportunities

Investments

Health Care Products/Services

One of the newer scams is the “PayPal”, “CitiBank”, “Wells Fargo” or “eBay” email message asking you to verify your account. The email contains what appears to be a link to a valid webpage. Coded into the HTML, however, is its real destination, an Asia Pacific website that has no affiliation to any of these sites.  I hate to admit it but even I fell for this scam. 

Every Internet user should know about spoof (a.k.a. phishing or hoax) e-mails that appear to be from a well-known company but can put you at risk.

Although they can be difficult to spot, they generally ask you to click a link back to a spoof web site and request that you update or confirm sensitive personal information. To bait you, they may allude to an urgent or threatening condition concerning your account.

A real email from one these businesses will always address you by your first and last name and be sent to the email address you provided when you signed up for your account.

In talking about Internet scams, I have to include one that has been around for a number of years but continues to show up in my email inbox.  These emails start off with someone desperately needing your help. They have money that is stuck in a country and need your help to get it out of that country to the United States and they will share a portion with you if you help them. This is commonly called the Nigerian email scam that has suckered in many people. The outcome is always the same - you spend thousands of dollars for bribes and other expenses and you don't see a dime. 

Remember, “If it sounds too good to be true, it most likely is!”