Wise Owl Opportunities - Consumer Complaints

It is not a big surprise that with the rapid growth of Internet activity there has been a correlating growth in crime. The sheer volume and speed of transactions on the Internet has led to new avenues of fraud and illegal activity.

According to the Federal Trade Commission (FTC), more than 200,000 complaints were made to law enforcement agencies and consumer groups last year. Our computers have helped hasten the pace. Each of the top three complaints has been affected by the widespread use of computers.

Identification theft accounted for 42 percent of the complaints received. Identity theft is when someone uses your personal information (credit card or Social Security number) to steal money or commit a crime in your name. According to the FTC's figures, ID theft is the most popular (and profitable) form of consumer fraud. ID thieves stole nearly $100 million from financial institutions in 2001.

First, under no circumstance should your forward your social security number or credit card information via e-mail. E-mail is like a post card, anyone can read and use the information. Remember also, your e-mail first goes through your Internet Service Providers computer - it does not go directly from your machine to the recipient's machine.

Personal information is also stolen from the server it is sent to. Most sites do not store your credit card number in a location accessible to others on the Internet; however, some do and these are vulnerable to theft. A vendor must ensure the security of the computer that is storing your information. That is why it is so important to know whom you are giving your card number to.

The second item on the FTC's complaint list is fraud involving Internet auctions. Internet auctions can be a safe and fun way to do business. Many people are thrilled with their shopping experiences. However, the growth of business has resulted in an increase in scams and an increase in deceitful auctioneers. Complaints include goods paid for but never received and items less valuable than advertised.

The third complaint is about Internet services and computers. This refers to trial offers with unclear terms or difficult canceling procedures, services offered with undisclosed charges, and equipment purchases.

In all cases, our most important line of defense is common sense. If it sounds too good to be true, it probably is. Beware of deceptive offers, hidden charges, and conditions of sale. If you have not done business with a firm before, pick up the phone and verify their legitimacy first.

The FTC offers additional information at www.ftc.gov. Some key reminders:
Only share your credit card with companies you know and trust.
Do not share information with any company that does not clearly state its name, address and number.

The internet is still a wonderful place to do business.