How To Avoid Internet Scams

Yesterday's incidents reminded me of how easy it is for people to be taken in by apparently legitimate offers. The scam which was brought to my attention was relatively easy for me to see through, but that's because I am familiar with how businesses operate on the internet, and that includes some of the behind-the-scenes details that are definitely not common knowledge. People with less internet knowledge might not be so lucky.

The scams are out there everywhere, and they hide behind different faces. Instead of debunking them one at a time, I've compiled a 2-part list of things to do when investigating a new business opportunity. The first part is standard precautionary measures, the second part is aimed specifically at internet businesses, and includes some information that those who don't work in the tech sector might not know.

BASIC BACKGROUND CHECKS

1. Check out the business with the Better Business Bureau. See if there are any complaints against that business, or the principals of that business. If you can't find out who owns it, beware: Legitimate businesses do not hide their owners, presidents, CEO's, etc. Remember: A clean record with the BBB is a good place to start, but it does not guarantee that the company is clean.

2. Check out the business credentials. Where is it located? Is that a valid address? Who owns it? Who runs it? If they won't give you a physical address, that's another red flag.

3. Check out the offer. If an offer seems too good to be true, it probably is. Do your research carefully. Be particularly cautious with any "opportunity" that wants you to pay money up front, or asks for detailed information about your bank accounts (the Nigerian scam is infamous on that score)!

INTERNET INVESTIGATIONS

1. Check out the behind-the-scenes details of the website. Who owns the URL? Who is the administrative contact (should be someone in a position of authority at the same company)? Who is the technical contact? Where are all these people located? Does this information fit with what is given on the website itself? To find this information, go to one of the sites where you can research domain ownership. Network Solutions or GeekTools both offer "whois" tools. Type in the website name (for example, insyncsoft.com), and the information should pull up. Watch for red flags. In the case of the scam I learned about yesterday, the website claims they are in Czechoslovakia, the offer claims that they arein Ukraine, the admin contact is in Ohio (that street address turned out to be for a garbage facility -- nice touch, eh?) and the technical contact is in Canada. Red flags all over the place. If that information is protected or not given, that is another red flag. Again, legitimate businesses do not hide, and do not discourage people from contacting them.

2. Check out the offer. In this case, they wanted people to "process PayPal payments". First of all, no company needs a middle man to do this; PayPal payments can be made in multiple currencies to anyone with an email address! Second, no company is going to limit themselves by using only one method of payment, which requires them to pay out 10% - 20% of their profits to a middleman right away. Legitimate businesses have merchant accounts, and can process orders through a secure online shopping cart. It doesn't matter what country you're in. If your business has the right financial credentials, you can get a merchant account.

3. Check out the company. If you have the company name, do a search for it on Google, MSN, or whatever your favorite search engine is. See what else comes up. In this case, you would have quickly discovered that the domain name (www.insyncsoft.com) was for sale in 2002 -- which doesn't fit if the company has supposedly been in business since 1999. Check out their products too. This bogus company claimed to have created "successful software products" including Atrides, RelaniumPost, and X-draw. Personally, I'd never heard of any of them, and I'm not impressed by fancy names. A search for "Atrides" pulls up a site in Russian about a cat. X-draw is free software created by Riku Saikkonen. RelaniumPost gets no matches at all. These are fakes.

WHAT TO DO IF YOU UNCOVER A SCAM

1. Contact the ISP for the website. This is the company hosting the website. By hosting them, they are abetting illegal activities. Lay out the facts, and try to get the website shut down.

2. Contact the people listed as owners or contacts. Odds are, these are fake addresses, but you might get through. Make it clear that you know this is a scam and are pursuing action against them.

3. If you've been scammed, contact the authorities. Give them every bit of information you possess, and help them catch the scam artists in question.

4. If you've seen the site/scam advertised anywhere, notify the sponsor that this is a scam. In this case, the scam was posted on both Monster.com and jobseeker. They have been notified, and asked to pull the ads.

Scams exploit ignorance. Educate yourself, your co-workers, your family and your friends, and you can protect them from being taken for a very expensive ride. The half hour you spend doing background research could save you from a nightmare experience. Just ask Tina, the stay-at-home mom who lost $3000 in one month to a fake company called Insyncsoft.

Comments

[tecdog]

Yes, this company is still at under the name of http://asciotech.com/index-2.htm

and witht he same paypal pitch I found them under CareerBuilder.com and was going to sign up when I came acroos this web site, all I want to say is thanks guys for saving my money.

[Laura Seeley]

Thank you very much for alerting us to this other URL which also has plagiarized our website, and is perpetrating the same scam. We will immediately pursue whatever actions we can to get them shut down.

I'm delighted to hear that this post helped save you from being taken in by the scam. As I said, knowledge is your best defense! So, spread the word, and thanks again. Good luck in finding a legitimate internet business to earn some extra money -- they do exist!

[jason]

thank you for your research. It'd be a comfort if you could send your findings to career sites like monster and careerbuilder

[Laura Seeley]

This information has been supplied to both of those sites, by several different people. Unfortunately, the ads keep cropping up, under different company names. That will probably continue until they stop making money by using this particular scam.

However, it would be nice if some of the major job-seeker boards had notice areas, where they could post similar scam recognition tips and try to protect their users.

[Jessica Fabienne]

great joy being here. really good place.

[Tino Josef]

Just surfed in and found this really interesting place here. A lot of good stuff for everybody.
Go on like this and i will surely visit your site again sometime.

[John]

How does the PayPal scam work? Someone has too start the chain of events by giving someone money. Methodology is what will be cloned not just "fake" sites. Piramids took all shapes and forms until we learned too identify them. In which case we need too support and help authorities not only in identification but getting involved and catching these guys

[nancy]

I have been communicating w/ a man named Michael Burton of a company called VSA Soft, which has the same MO as InSyncSoft, even listing the same 3 software applications in its website (www.vsasoft.com), and lists itself as a Prague, Czech company. When asked about US sites, name of his attorney, or any business references, he was vague and/or did not answer questions. When asked how expesnes were reimbursed to me as an Independent Contractor of his Company he did not answer. He did send an "Agreement" to me for signature but wouldnt answer any questions. He was all too amenable about hiring me --I know have a good resume but not so good that any employer would consider hiring someone, sight unseen, to take client monies and put into their OWN bank and then send on the rest of the money to company via Western Union is just too weird. Anyone out there who is checking on this, BEWARE OF A COMPANY CALLED VSA SOFT, INC.!!! They seem to be and very well may be a pyramid scheme. Thanks to my attorney and my husband for their help in checking this out further.