| The Federal Trade Commission is responsible | | | | incomeThe trendiest get-rich-quick schemes |
| for issuing and enforcing rules for consumer | | | | offer unlimited profits exchanging money on |
| issues on the Internet. As part of this | | | | world currency markets; newsletters |
| process, the FTC has published a list of the | | | | describing a variety of easy-money |
| 12 scams you are most likely to receive as | | | | opportunities; the perfect sales letter; and |
| email.The Dirty Dozen ScamsThe "dirty dozen" | | | | the secret to making $4,000 in one day.The |
| are:1. Business opportunitiesThese business | | | | scam: If these systems worked, wouldn't |
| opportunities make it sound easy to start a | | | | everyone be using them? The thought of easy |
| business that will bring lots of income | | | | money may be appealing, but success generally |
| without much work or cash outlay. The | | | | requires hard work.7. Free goodsSome email |
| solicitations trumpet unbelievable earnings | | | | messages offer valuable goods-for example, |
| claims $1,000 a day or more without doing any | | | | computers, other electronic items, and |
| work. Many business opportunity solicitations | | | | long-distance phone cards-for free. You're |
| claim to offer a way to make money in an | | | | asked to pay a fee to join a club, then told |
| Internet-related business. Short on details | | | | that to earn the offered goods, you have to |
| but long on promises, these messages usually | | | | bring in a certain number of participants. |
| offer a telephone number to call for more | | | | You're paying for the right to earn income by |
| information. In many cases, you'll be told to | | | | recruiting other participants, but your |
| leave your name and telephone number so that | | | | payoff is in goods, not money.The scam: Most |
| a salesperson can call you back with the | | | | of these messages are covering up pyramid |
| sales pitch.The scam: Many of these are | | | | schemes, operations that inevitably collapse. |
| illegal pyramid schemes masquerading as | | | | The payoff goes to the promoters and little |
| legitimate opportunities to earn money.2. | | | | or none to you.8. Investment |
| Bulk emailBulk email solicitations offer to | | | | opportunitiesInvestment schemes promise |
| sell you lists of email addresses, by the | | | | outrageously high rates of return with no |
| millions, to which you can send your own bulk | | | | risk. Many are Ponzi schemes, in which early |
| solicitations. Some offer software that | | | | investors are paid off with money contributed |
| automates the sending of email messages to | | | | by later investors. This makes the early |
| thousands or millions of recipients. Others | | | | investors believe that the system actually |
| offer the service of sending bulk email | | | | works, and encourages them to invest even |
| solicitations on your behalf. Some of these | | | | more.The scam: Ponzi schemes eventually |
| offers say, or imply, that you can make a lot | | | | collapse because there isn't enough money |
| of money using this marketing method.The | | | | coming in to continue simulating earnings. |
| problem: Sending bulk email violates the | | | | Other schemes are a good investment for the |
| terms of service of most Internet service | | | | promoters, but no for participants.9. Cable |
| providers. If you use one of the automated | | | | descrambler kitsFor a small sum of money, you |
| email programs, your ISP may shut you down. | | | | can buy a kit to assemble a cable descrambler |
| In addition, inserting a false return address | | | | that supposedly allows you to receive cable |
| into your solicitations, as some of the | | | | television transmissions without paying any |
| automated programs allow you to do, may land | | | | subscription fee.The scam: The device that |
| you in legal hot water with the owner of the | | | | you build probably won't work. Most of the |
| address's domain name. There are also very | | | | cable TV systems in the U.S. use technology |
| strict rules, known as the CAN-SPAM Act, | | | | that these devices can't crack. What's more, |
| regulating bulk email marketing.3. Chain | | | | even if it worked, stealing service from a |
| lettersYou're asked to send a small amount of | | | | cable television company is illegal.10. |
| money ($5 to $20) to each of four or five | | | | Guaranteed loans or credit, on easy termsSome |
| names on a list, replace one of the names on | | | | email messages offer home-equity loans that |
| the list with your own, and then forward the | | | | don't require equity in your home. Usually, |
| revised message via bulk email. The letter | | | | these are said to be offered by offshore |
| may claim that the scheme is legal, that it's | | | | banks. Sometimes they are combined with |
| been reviewed or approved by the government; | | | | pyramid schemes, which offer you an |
| or it may refer to sections of U.S. law that | | | | opportunity to make money by attracting new |
| legitimize the scheme.The scam: Chain letters | | | | participants to the scheme.The scams: The |
| are almost always illegal and nearly all of | | | | home equity loans turn out to be useless |
| the people who participate lose their money. | | | | lists of lenders who will turn you down. The |
| The fact that a "product" such as a report on | | | | promised credit cards never come through, and |
| how to make money fast may be changing hands | | | | the pyramid schemes always collapse.11. |
| in the transaction does not change the | | | | Credit repairCredit repair scams offer to |
| legality of these schemes.4. Work-at-home | | | | erase accurate negative information from your |
| schemesEnvelope-stuffing solicitations | | | | credit file so you can qualify for a credit |
| promise steady income for minimal labor-for | | | | card, auto loan, home mortgage, or a job.The |
| example, you'll earn $2 each time you fold a | | | | scam: The scam artists who promote these |
| brochure and seal it in an envelope. Craft | | | | services can't deliver. Only time, a |
| assembly work schemes often require an | | | | deliberate effort, and a personal debt |
| investment of hundreds of dollars in | | | | repayment plan will improve your credit. The |
| equipment or supplies, and many hours of your | | | | companies that advertise credit repair |
| time producing goods for a company that has | | | | services appeal to consumers with poor credit |
| promised to buy them.The scam: You'll pay a | | | | histories. Not only can't they provide you |
| small fee to get started in the | | | | with a clean credit record, but they also may |
| envelope-stuffing business. Then, you'll | | | | be encouraging you to violate federal law. If |
| learn that the email sender never had real | | | | you follow their advice by lying on a loan or |
| employment to offer. Instead, you'll get | | | | credit application, misrepresenting your |
| instructions on how to send the same | | | | Social Security number, or getting an |
| envelope-stuffing ad on your own. If you earn | | | | Employer Identification Number under false |
| any money, it will be from others who fall | | | | pretenses, you will be committing fraud.12. |
| for the scheme you're perpetuating.5. Health | | | | Vacation prize promotionsElectronic |
| and diet scamsPills that let you lose weight | | | | certificates congratulating you on "winning" |
| without exercising or changing your diet, | | | | a fabulous vacation for a very attractive |
| herbal formulas that liquefy your fat cells | | | | price are among the scams arriving in your |
| so that they are absorbed by your body, and | | | | email. Some say you have been "specially |
| cures for impotence and hair loss are among | | | | selected" for this opportunity.The scam: Most |
| the scams flooding email boxes.The scam: | | | | unsolicited commercial email goes to |
| These gimmicks don't work. The fact is that | | | | thousands or millions of recipients at a |
| successful weight loss requires a reduction | | | | time. Often, the cruise ship you're booked on |
| in calories and an increase in physical | | | | may look more like a tug boat. The hotel |
| activity. Beware of case histories from | | | | accommodations likely are shabby, and you may |
| "cured" consumers claiming amazing results | | | | be required to pay more for an upgrade. |
| and testimonials from "famous" medical | | | | Scheduling the vacation at the time you want |
| experts you've never heard of.6. Effortless | | | | it also may require an additional fee. |