Dot Cons

According to the FTC (Federal Trade Commission) these are the top ten online Don Con scams:

Internet Auctions

The Bait: Shop in a "virtual marketplace" that offers a huge selection of products at great deals.

The Catch: After sending their money, consumers say they've received an item that is less valuable than promised, or, worse yet, nothing at all.

The Safety Net: When bidding through an Internet auction, particularly for a valuable item, check out the seller and insist on paying with a credit card or using an escrow service.

Internet Access Services

The Bait: Free money, simply for cashing a check.

The Catch: Consumers say they've been "trapped" into long-term contracts for Internet access or another web service, with big penalties for cancellation or early termination.

The Safety Net: If a check arrives at your home or business, read both sides carefully and look inside the envelope to find the conditions you're agreeing to if you cash the check. Read your phone bill carefully for unexpected or unauthorized charges

Credit Card Fraud

The Bait: Surf the Internet and view adult images online for free, just for sharing your credit card number to prove you're over 18.

The Catch: Consumers say that fraudulent promoters have used their credit card numbers to run up charges on their cards.

The Safety Net: Share credit card information only when buying from a company you trust. Dispute unauthorized charges on your credit card bill by complaining to the bank that issued the card. Federal law limits your liability to $50 in charges if your card is misused.

International Modem Dialing

The Bait: Get free access to adult material and pornography by downloading a "viewer" or "dialer" computer program.

The Catch: Consumers complained about exorbitant long-distance charges on their phone bill. Through the program, their modem is disconnected, then reconnected to the Internet through an international long-distance number.

The Safety Net:Don't download any program to access a so-called "free" service without reading all the disclosures carefully for cost information. Just as important, read your phone bill carefully and challenge any charges you didn't authorize or don't understand.

Web Cramming

The Bait: Get a free custom-designed website for a 30-day trial period, with no obligation to continue.

The Catch: Consumers say they've been charged on their telephone bills or received a separate invoice, even if they never accepted the offer or agreed to continue the service after the trial period.

The Safety Net: Review your telephone bills and challenge any charges you don't recognize.

Multilevel Marketing Plans/ Pyramids

The Bait: Make money through the products and services you sell as well as those sold by the people you recruit into the program.

The Catch: Consumers say that they've bought into plans and programs, but their customers are other distributors, not the general public. Some multi-level marketing programs are actually illegal pyramid schemes. When products or services are sold only to distributors like yourself, there's no way to make money.

The Safety Net: Avoid plans that require you to recruit distributors, buy expensive inventory or commit to a minimum sales volume.

Travel and Vacation

The Bait: Get a luxurious trip with lots of "extras" at a bargain-basement price.

The Catch: Consumers say some companies deliver lower-quality accommodations and services than they've advertised or no trip at all. Others have been hit with hidden charges or additional requirements after they've paid.

The Safety Net: Get references on any travel company you're planning to do business with. Then, get details of the trip in writing, including the cancellation policy, before signing on.