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.
Recent Comments