FTC TACKLES NET FRAUD, LISTS TOP 10 'DOT CONS'

 D. Ian Hopper The Associated Press
The Commercial Appeal (Memphis, TN)
Copyright 2000 The Commercial Appeal


Getting stiffed at an Internet auction. An "all expenses paid" hotel that turns out 
not to be free. An offer for free adult material on the Web that secretly runs up a 
hefty phone bill.

The government cited these gimmicks Tuesday as it posted its first-ever top 10 list of 
Internet scams that Americans should avoid, and vowed to work with overseas law 
enforcement to crack down on Web con artists.

"The Internet has changed the way consumers gather information, shop and do business," 
said Jodie Bernstein, Federal Trade Commission director of consumer protection. "It's 
also changed the way law enforcers and consumer protection agencies do business."

Several of the FTC's "dot con" scams are very old tricks reincarnated on the Internet. 
Miracle products, credit card theft and old-fashioned pyramid schemes are getting a 
new life online, officials said.

Worries about Internet thieves have slowed electronic commerce since its inception, 
but more consumers are gradually warming to the idea of Internet purchases. The FTC's 
new consumer protection effort is intended to keep criminals from undermining that 
trust, said officials.

The agency said the government has brought 251 lawsuits against online scammers this 
year. Officials described a handful of the cases on Tuesday to better educate Web 
consumers about the dangers.

For instance, the FTC has sued three individuals and their company, Computers By Us, 
in Thomasville, Pa., alleging they participated in online auctions without delivering 
the goods or offering a refund after getting paid. The operators of the company did 
not respond to calls at their office for comment Tuesday.

The agency also alleged that a group of affiliated Arizona companies sent $ 3.50 
"rebate" checks to consumers. When the checks were cashed, the consumers unwittingly 
agreed to allow the defendants to be their Internet service provider.

Monthly charges started appearing on phone bills and were difficult to remove, 
officials alleged.

The companies had no telephone listings, according to operator assistance.

In traditional computer crime, such as hacking, law enforcement efforts can be hobbled 
by international borders with differing jurisdictions and laws.

The FTC said it is trying to overcome those obstacles by creating a new international 
network of consumer protec-tion agencies.

"We want dot con artists to know that consumer protection spans the globe - physically 
and in cyberspace," said Bernstein.

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