Internet Fraud Increasing 300 Percent

The National Consumers League (NCL) debuted Internet Fraud Watch and identified what it called the top ten Internet fraud schemes. The association’s World Wide Web fraud watch will monitor the newest and some of the oldest cons to gauge Internet fraud activities.

Today, the new site lists the following top ten areas where Internet fraud occurs: Internet and on-line services, general merchandise, auctions, pyramids and multilevel marketing, business opportunities and franchises, work-at-home schemes, prizes and sweepstakes, credit card offers, book sales, and magazine subscriptions

Internet Fraud Watch, at http://www.fraud.org/ifw.htm, also identifies state-by-state rankings of the top 20 locations for reports of fraud and victims of Internet fraud. NCL claims Internet fraud was up 300 percent last year.

NCL President Linda F. Golodner, said in a press conference, "Our new Web pages give tips on how to protect yourself from fraudulent deals." She says Internet users are losing between $10 to $10,000 in various scams. "Cybercrooks are in your wallet with a click of the mouse," she added.

Typical of any fraud, Golodner says consumers must watch for common signs of fraud such as extravagant promises of profits, guarantees of credit regardless of bad credit history, and incredibly low prices or prizes that require up-front payments.

According to NCL more than 60 percent of Internet fraud victims pay by check, cash, or money orders, while 19 percent pay by credit card. Victims are also pay through telephone billing, bank account debits, and wire transfers.

Internet Fraud Watch will take Internet fraud reports and relay them daily to more than 150 law enforcement agencies in the US and Canada, including the Federal Trade Commission, State Attorneys General and police departments.

Internet Fraud Watch has received funding from MasterCard, NationsBank, MCI and Bell Atlantic. NCL, a private, nonprofit membership organization, represents consumers on issues of concern such as fraud, health care, fair labor standards, food and drug safety, and telecommunications.

(Contact: NCL, 202-835-3323)