Protect Yourself from Internet Fraud

by Attorney Michele L. Leaf
Student Legal Services Office

Students increasingly are using the internet to shop for goods and services, often at better prices than local retail stores. However, con artists also are online, hoping to take advantage of low overhead, instant access to a global customer base, and the ability to hide their identity. As a result, every year more students are becoming victims of fraud, and losing substantial amounts of money to thieves.

Consumers are easily confused through sophisticated web sites that mimic the web sites of legitimate businesses. In some cases the goods and services offered on a web site are non existent and the seller cannot be located to obtain a refund. Even worse, sometimes the credit card number and other personal information which the buyer has provided to the seller is unlawfully used to access bank accounts and make additional fraudulent charges.

Since their beginning in 1995, Internet auctions have become a hot phenomenon on the Web. However, online auctions can be risky business, according to the Federal Trade Commission (FTC), a federal agency that works to prevent fraud, deception and unfair practices in the marketplace. Among the thousands of consumer fraud complaints the Federal Trade Commission receives yearly, those dealing with online auction fraud rank at the top of the list, comprising 90% of all complaints in 2002. The complaints generally deal with late shipments, no shipments, or shipments of products that aren't the same quality as advertised; bogus online payment or escrow services; and fraudulent dealers who lure bidders from legitimate auction sites with seemingly better deals.

Email boxes are filling up with more offers for business opportunities than any other kind of unsolicited commercial email. That's a problem, according to the Federal Trade Commission, because many of these offers are scams. Electronic certificates congratulating you on "winning" a fabulous vacation for a very attractive price are among the scams arriving in your email. Some say you have been "specially selected" for this opportunity. Consumers are often lured by "prizes" which turn out to be items for sale for which the winner is charged "taxes" or "shipping" rather than a purchase price. Typically, these associated costs are equal or greater than the purchase price would otherwise be, and the accommodations or cruise is of inferior quality. Be aware that legitimate contests do not require the payment of any fee to claim a prize.

Another common fraud promoted through the internet is the promise of winnings in foreign lotteries. Some scams involve the sale of foreign lottery tickets, which is in fact against the law in the United States. Another scam announces by email that the recipient has "won" thousands of dollars in a foreign lottery. The email then describes a verification procedure which involves providing passport numbers and bank account information, allegedly so that winnings can be deposited into the recipient's account. It is very important that you keep your credit card and bank account numbers to yourself. Scam artists often ask for them so that they can use them fraudulently.

Identity theft is one of the fastest growing problems in the United States. It occurs when someone makes use of your personal information, to fraudulently establish credit card accounts, purchase goods and services, or commit crimes in your name. Controlling access to and use of your identifying information is not an easy matter.

Steps you can take to safeguard your identity:

Never give out personal information (Social Security number, credit card numbers, bank account information, etc.) to anyone who makes an unsolicited request.
Be sure to examine all credit card and bank statements as soon as you receive them. If there are unrecognized charges, it could indicate that someone is stealing from you. To avoid becoming liable for charges or withdrawals you didn't make, contact the bank, creditor or service provider immediately. If you don't receive an expected credit card bill or bank statement, call the company to inquire and make sure that an unauthorized address change was not filed.
When making a purchase on-line, use only the most secure web locations. Generally, these are prefixed with "https." Also, it is helpful to have one credit card that is reserved exclusively for purchases made on-line.

What You Can do if You are a Victim of Fraud

If you are a victim or attempted victim of Internet fraud, it's important to report the scam quickly so that law enforcement agencies can try to shut the fraudulent operations down. You should take the following actions:

File a report with your local police agency to establish a record of the crime.
Report to the following national organizations and government agencies:
- National Fraud Information Center
- Internet Fraud Complaint Center
  (a joint project of the F.B.I. and National White Collar Crime Center)
- Federal Trade Commission
Contact all banks and credit card companies where you maintain accounts to alert them to possible fraud.
Contact the social security administration if you have a social security number, and the three major credit bureaus to let them know you have been a victim of fraud and to request that a fraud alert be placed on your account. Request bi-monthly copies of your credit report until the case is resolved. These are provided at no cost to fraud victims
- Equifax Report fraud at (800) 525-6285, get report (800) 685-1111.
- Experian Report fraud at (888) 397-3742, get report call same #.
- TransUnion Report fraud at (800) 680-7289, get report (800) 888-4213.
- Social Security Administration Report fraud at (800) 269-0271, order statement (800) 722-1213.
University of Massachusetts students should call the Student Legal Services Office, (413) 545-1995 for free legal advice and assistance.