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Operation Top Ten Dot Cons

Wed, 11/29/2000 - 1:00am — Karen Stevenson
Description: 

Fraud and abuse have migrated to the information age. The Federal Trade Commission (FTC), with four other U.S. agencies and consumer protection organizations from 9 countries and 23 states announced 251 law enforcement actions against online scammers in "Operation Top Ten Dot Cons." The top 10 targeted scams were:

  • Internet Auction Fraud
  • Internet Service Provider Scams
  • Internet Web Site Design/Promotions
  • Web Cramming
  • Internet Information and Adult Services
  • Credit Card Cramming
  • Multi-level Marketing/Pyramid Scams
  • Business Opportunities and Work-At-Home Scams
  • Investment Schemes and Get-Rich-Quick Scams
  • Travel/Vacation Fraud
  • Telephone/Pay-Per-Call Solicitation Frauds (including modem dialers and videotext)
  • Health Care Frauds

In one scam, defendants mailed $3.50 "rebate" checks to consumers. When consumers cashed the check, they were unwittingly agreeing to allow the defendants to be their Internet Service Provider (ISP), and the defendants started placing monthly charges on their telephone bills. The defendants made it nearly impossible to cancel future monthly charges and receive refunds. In another variation, consumers were billed for a Website page they didn't even know they had. Targeting small businesses and not-for-profit organizations, the scammers call and offer a "free" Web page, then start billing phone bills without authorization.

Fraud and abuse have migrated to the information age. The Federal Trade Commission (FTC), with four other U.S. agencies and consumer protection organizations from 9 countries and 23 states announced 251 law enforcement actions against online scammers in "Operation Top Ten Dot Cons." The top 10 targeted scams were:

  • Internet Auction Fraud
  • Internet Service Provider Scams
  • Internet Web Site Design/Promotions
  • Web Cramming
  • Internet Information and Adult Services
  • Credit Card Cramming
  • Multi-level Marketing/Pyramid Scams
  • Business Opportunities and Work-At-Home Scams
  • Investment Schemes and Get-Rich-Quick Scams
  • Travel/Vacation Fraud
  • Telephone/Pay-Per-Call Solicitation Frauds (including modem dialers and videotext)
  • Health Care Frauds

In one scam, defendants mailed $3.50 "rebate" checks to consumers. When consumers cashed the check, they were unwittingly agreeing to allow the defendants to be their Internet Service Provider (ISP), and the defendants started placing monthly charges on their telephone bills. The defendants made it nearly impossible to cancel future monthly charges and receive refunds. In another variation, consumers were billed for a Website page they didn't even know they had. Targeting small businesses and not-for-profit organizations, the scammers call and offer a "free" Web page, then start billing phone bills without authorization.