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Fraudulent Web Sites Steal Billions Online
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| Wednesday, March 7th, 2007 | Kristen DiPaolo | CWK Producer |
“It’s frustrating! Because you think it’s real but it’s not! And you find out that you have just been cheated out of your money!!”
– Ari Whiteman, 15-year-old scam victim
Shoppers are now spending more than 100-billion dollars a year online. Much of that money comes from teens.
However, kids are increasingly becoming the victims of online scams. Experts say it’s because teens are savvy with technology - but they lack the wisdom to spot a deal that’s too good to be true.
15-year-old Ari Whiteman, for example, was trying to sell a portable play station online.
He found a buyer through Amazon Marketplace - a web site that’s similar to eBay.
“He offered to buy it for, like, 50 bucks more than what I put it on for,” explains Ari, “I guess to make sure that he was the one that got it.”
Amazon is supposed to coordinate the sale, but the buyer e-mailed Ari directly - pretending to be Amazon.
His e-mails looked professional.
“There’s ads on here!! And it looks so real with the Amazon [logo] and stuff like that!” says Ari, as he points to one of the fraudulent e-mails.
Ari shipped off his play station - but never got paid. In total, he lost about $350.
“Ultimately in contacting Amazon they indicated that the purchase was likely fraudulent,” explains Ari’s father, David Whiteman. “They said that there was nothing that they could do, that this type of thing happens all the time.”
Scams like this total almost three billion dollars a year. In fact, thieves often replicate the web sites of major retailers in order to steal credit card numbers.
So how can you spot an imposter web site?
“What’s the web domain in the address line?” asks Todd Mark, a spokesperson with the Consumer Credit Counseling Service. “If it says yourstore.com, chances are you are okay. But if it’s got a lot of numbers and then the name is sort of meshed in at the end, there is a good chance you are on a spoof site.”
And, he says, be careful of sites with links that don’t work.
“Sometimes they will put just enough work in there to make it look real,” explains Mark. “But then you will click on ‘today’s specials’, or ‘learn about us/corporate’, or ‘job opportunities’ - and all the links are dead.”
Finally, he says, avoid clicking on links you get through e-mails.
What We Need To Know
- Enter your credit card information only on secure web sites. These typically start with “https:” as opposed to “http:” Look also for a padlock icon in the bottom right hand corner of the screen. (Better Business Bureau Online)
- Teach kids to use common sense when shopping online. If a merchant is able to offer an item for 50 percent less than all its competitors, kids should question why no one else is able to offer such a great price. It is possible to find good deals on the Internet, but when something seems too good to be true, it usually is. (Todd Mark, Consumer Credit Counseling Service)
- To avoid getting ripped off, kids should stick with stores and brand names they trust in real life. Children should research any online merchant they do not know. The company should have a physical address listed on its web site. Very rarely will you find a reputable company that only has a P.O. Box and no physical location. Also, the company should be licensed in its home state. (Todd Mark, Consumer Credit Counseling Service)
- Make sure the company has a phone number listed on the web site. This will make it easier to complain if there is a problem with your purchase. You can always call the number in advance to make sure the number is legitimate. (Federal Trade Commission)
- Do an Internet search for “complain” and the company name, or “rip-off” and the company name. If people have been scammed, they will likely want to warn others. (Todd Mark, Spokesperson, Consumer Credit Counseling Service)
- The best way to pay for items online is with a credit card, and not a debit card. Under federal law, if you have an unauthorized charge on your credit card, your liability is limited to $50. (Federal Trade Commission)
Resources
- Better Business Bureau Online
- Consumer Credit and Counseling Service
- Federal Trade Commission
