|
|
For Immediate Release |
| August 8, 2002 | |
| Contact: Carol McKay | |
| 202-835-3323 ext.114 | |
| media@nclnet.org |
Online
Auction Fraud Skyrocketing in 2002
Check out Seller, Pay Attention to How You Pay, IFW
Advises Consumers during National Fraud Awareness Week
Washington, DC—Violent crime may grab the headlines, but for many
criminals, it’s easier to rob consumers with computers than with guns,
according to the National Consumers League (NCL). For National Fraud Awareness
Week, August 4-10, 2002, NCL released new statistics (www.fraud.org/02intstats.htm)
on Internet fraud based on reports consumers made to its Internet Fraud Watch (IFW)
program from January through June of this year. In the first six months of 2002,
consumers lost an average of $484 to Internet fraud.
Complaints
about online auction transactions, which have steadily decreased over the past
few years, have suddenly skyrocketed, accounting for 87 percent of the Internet
fraud reports made to the IFW in the first six months of 2002, compared to 70
percent in 2001. While the reasons for this increase are not clear, the remedies
are – auction buyers should check sellers out carefully and pay attention to
how they pay for their purchases.
Information
about sellers’ track records may be available in feedback forums on auction
Web sites, from the Better Business Bureau, and from state and local consumer
protection agencies. While no
complaints doesn’t guarantee that the transaction will be trouble-free, a
history of complaints is a good indication not to do business with a company or
individual.
Credit
cards are one of the safest ways to pay. “If you don’t get the merchandise
or it wasn’t described honestly, you can dispute the charges,” says Susan
Grant, director of IFW. “Using an escrow service is another good alternative,
especially if you’re spending a lot of money, because the seller doesn’t get
paid until you get what you were promised.”
Some auction sites also offer insurance. Consumers should read the terms
carefully before they bid to understand how much is covered and whether there
are any requirements or limitations. For
example, some insurance only covers the buyer if the seller had a good
“feedback” rating on the auction site at the time of the transaction.
There are a growing number of companies that offer convenient ways for buyers and sellers to exchange money but that don’t function as escrow services; with many of these services, the sellers get paid immediately whether they’ve kept their promises or not. When consumers pay by credit card through these services, they don’t necessarily have the legal right to dispute the charges if the sellers turn out to be crooks. As long as the service holds up its end of the bargain—transmitting the correct amount to the seller—it may have no liability if something else goes wrong. “The key is to look at the policies and promises stated by the payment service,” cautions Grant. Some services attempt to resolve disputes or offer money-back guarantees, but others may limit their involvement to the payment process.
Top Cyber Scams in the First Half of 2002
1)
Auctions
2)
General Merchandise Sales
3)
Nigerian Money Offers
4)
Computer Equipment/Software
5)
Internet Access Services
6)
Work-at-Home Plans
7)
Information/Adult Services
8)
Travel/Vacations
9)
Advance Fee Loans
10)
Prizes/Sweepstakes
Protect Yourself from Internet Fraud
x Know who you’re dealing with. If the seller or charity is unfamiliar, check with your state or local consumer protection agency and the Better Business Bureau. Get the physical address and phone number in case there is a problem later.
x
Look
for information about how complaints are handled.
Some sellers participate in programs that hold them to certain
standards and help resolve complaints.
x
Be
cautious about unsolicited emails. They
are often fraudulent.
x
Guard
your personal information. Don’t provide your credit card or bank account
number unless you are actually paying for something with it.
x Pay the safest way. Credit cards are the safest way to pay for online purchases because you can dispute the charges if you never get the goods or services or the offer was misrepresented. For more information about paying safely online, go to www.nclnet.org/shoppingonline and www.nclnet.org/essentials/security.html
Consumers can report suspected telemarketing and Internet scams to the NFIC/IFW by calling 800-876-7060 or going to www.fraud.org. NCL transmits that information to federal, state and local law enforcement agencies. The Web site also offers updated tips on telemarketing and Internet fraud. For more information about National Fraud Awareness Week, go to www.fraudweek.com.
The National Consumers League, founded in 1899, is America's pioneer consumer organization. Our mission is to identify, protect, represent, and advance the economic and social interests of consumers and workers. NCL is a private, nonprofit membership organization. For more information, visit www.nclnet.org.
NCL runs
the National Fraud Information Center, which was created in 1992, and the
Internet Fraud Watch, which was created in 1996, operating in tandem with
the NFIC. Consumers from across the United States and Canada can call 800-
876-7060 fill out the online form
to file a complaint. NCL staff provides advice and tips on how to spot possible
telemarketing or Internet fraud and how to report it. Fraud reports from
consumers are sent within minutes to over 200 appropriate law enforcement
agencies, including the Federal Trade Commission and state attorneys general.
For more information visit www.fraud.org.
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