Investment Fraud

If you’re interested in making money – and who isn’t? – you may be susceptible to investment frauds that nab your hard-earned cash in get-rich-quick investment schemes online. Disreputable brokers and online investment firms can both compromise your security and fritter away huge amounts of funds. How to prevent these frauds? Invest with both eyes open – look for a firm that’s reputable and has high recommendations from legitimate customers. Don’t fall for exaggerated claims of instantaneous wealth and ridiculously high returns on documented losers like penny stocks. Instead, rely on the (admittedly boring) advice investment professionals have been giving for years: there’s no foolproof way to play the market. It’s an adage to keep in mind as you navigate the choppy waters of online investments.

MLMs

Money-makers-to-be are also at risk for online multi-level marketing schemes (MLMs). These scams are similar to the “pyramid schemes” of yore. You’re roped in by promises of at-home income and huge profit margins, then forced to recruit other participants and pay huge buy-in costs. The catch with MLMs is that their products (from diet pills to properties) are only attractive to other potential sellers. In other words, you pay a huge price to start up a business that has no built-in customers! It’s a bad deal for anyone who doesn’t have money to waste on a huge business mistake. Red flags include overly exaggerated claims, high-pressure sales and huge start-up fees.

Web Cramming

Would-be businesspeople may also be at risk for web cramming, a scam in which a company offers a 30-day free trial of a custom-designed Web site, then racks up huge charges on your phone or Internet bill, even if you cancel. These scams might involve charges for products and services you’ve never even seen! It’s usually easy to nab web crammers by keeping an eagle eye on your ISP or telephone company’s bills. Dispute any wrong charges as soon as possible after they appear on your bill, and look for reputable web designers with solid, reasonable contracts instead of anonymous online Web site sellers.

Vacation Scams

Everyone loves a vacation, but some unfortunate consumers get gypped during vacation scams that can cost an arm and a leg – and ruin precious time off. These scams involve disreputable travel agencies that hawk package deals at extremely low prices. These bargain-basement deals might seem all-inclusive and are usually touted as luxury vacations. Unfortunately, the fun begins when consumers arrive at their destination to a locale that isn’t as comfortable or pricey as their package promised. The return home isn’t so fun either, with ridiculous and expensive surcharges adding insult to injury. How to insure yourself against the vacation from hell? Refuse to book travel with companies you haven’t researched. Be wary of one-size-fits-all package deals – and make sure never to agree to vague vacation promises that aren’t memorialized in writing.

Bottom line

Internet scams are everywhere! Fortunately, they’re also easy to spot. Just look for exaggerated claims, and go with your gut instinct. Document every transaction and act with caution. It just might save you precious time and money.

If you think you’ve been ripped off for a substantial amount of money, you may want to seek the advice of an internet lawyer.

To find out more information about protecting yourself when online shopping go to Online Sales: Protect Yourself.