| y"> | | | | transfer, or money order--before you find out that the |
| The number may seem grim for Web-based | | | | cashier's check didn't clear. Believe it or not, this |
| commerce. In 2004 in the Unites States alone, | | | | scheme works because cashier's checks can be |
| computer users logged in more than 207,000 Internet | | | | cashed before they bounce.o sends you a cashier's |
| fraud reports to the U.S. Internet Crime Complaint | | | | check for the correct amount of money but then |
| Center. If you look hard at this number, you may be | | | | demands a refund, requesting that you repay with |
| astounded, and a good bit frightened, by the implication. | | | | your own money. See the scheme above for how this |
| You may ask, "Is it really safe to buy and sell at an | | | | trick works. |
| online site?" | | | | These warning signs, of course, are only for a handful |
| Put simply, the answer is: yes. The Internet is an | | | | of the frauds and scams out there. Conmen are good |
| incredibly powerful tool for business, so you can't pass | | | | at what they do, trying to separate you from your |
| it over just because of a few crooks and | | | | money. That's why it's best to always follow these |
| conmen--even if they do seem like they're behind | | | | golden rules of online commerce whenever buying or |
| every pop-up window and banner ad. The truth is that | | | | selling on an Internet auction or classified site. |
| you can create opportunity and make more money | | | | Keep your common sense. No matter how good a |
| online than you could lose in fraud. | | | | deal seems, or how much clients say they want to |
| Better yet, you could lose absolutely nothing if you | | | | pay, always remember the old adage: "If it sounds too |
| know the warning signs of fraud and the tricks to | | | | good to be true...." |
| avoid danger during your Web-based business | | | | Do your business locally. Try to buy and sell from your |
| dealings. | | | | neighbors as much as possible. It's safer, more |
| Whether you're looking to buy or sell goods online, the | | | | convenient, and better for your local economy. What's |
| first--and the best--way to fight fraud is prevention. | | | | more, it saves you the trouble of dealing with foreign |
| There are certain warning signs to watch for, which | | | | vendors and buyers. Though they may be legit, dealing |
| should set off a chorus of alarms and flashing red | | | | with them can be complicated because of different |
| lights in your head. Don't do business with this person! | | | | legal systems and customs, which can make any |
| For buyers, these potential warning signs can be when | | | | conflict difficult. |
| a seller:o asks you to pay through non-traceable | | | | Seal the deal with plastic. Paying for items with credit |
| avenues, such as Western Union or MoneyGram, or a | | | | cards, and allowing your customers to charge for |
| third party, or via an overseas address. You should | | | | purchases, is a great all-around business decision. |
| ask yourself--and the seller--why he or she won't | | | | Under U.S. law, all plastic purchases are protected |
| accept payment options that are traceable and | | | | from fraud and allowed to be disputed in case of |
| convenient for you.o posts an image on his auction or | | | | problems. |
| classified ad that's obviously from an outside source. | | | | Meet at the middle man. Intermediary services are |
| Sometimes these images may not even match the | | | | virtual middle men that protect both buyers and sellers |
| type of item, let alone the brand, that the ad features.o | | | | from cyber shysters. Services like Escrow act as a |
| sells a typically expensive item at cut-rate prices, which | | | | holding pen for both payment and sale items until both |
| is a good indicator that it could be counterfeit.o refuses | | | | the buyer and seller are content. Only then will Escrow |
| to provide tracking numbers when you purchase an | | | | finish a transaction. |
| item. Tracking numbers are another way to trace a | | | | Purchase with PayPal. As Escrow and credit cards do, |
| valid transaction.o offers only excuses, instead of help, | | | | PayPal guards against fraud for both buyers and |
| when your purchased item doesn't arrive at your | | | | sellers. It's a secure and reliable way to transfer |
| doorstep. | | | | money over the Internet. No wonder PayPal is the |
| If you're a seller, you ought to be wary of signs of a | | | | most popular online money transfer service. |
| suspicious buyer, such as when a buyer:o asks to pay | | | | As you can see, the odds are actually in your favor |
| only some of the fee, offering to the pay the rest | | | | when it comes to doing business on online classified or |
| sometime in the future. This is the old excuse from | | | | auction sites. The resource of the internet is far too |
| Popeye's friend Wimpy, who always could be heard | | | | valuable than to be taken away by a few crooks and |
| saying, "I'll gladly pay you Tuesday for a hamburger | | | | conmen. It simply comes down to being smart, sensible, |
| today." Wimpy never paid Tuesday.o sends you a | | | | and observant whenever buying or selling on the Web. |
| cashier's check for more money than the agreed price | | | | Then again, that's what all good business is about, |
| "by mistake." In this scam, the buyer then asks you to | | | | whether you're doing it in a mall or on the information |
| repay him the difference by personal check, wire | | | | superhighway. |