Chris Durst and Michael Haaren
Who says crime doesn't pay? The Internet has blessed us with many things, but it also cursed us with torrents of fraud. And scammers are prospering, while overwhelmed authorities function in a time of reduced staffs and tight budgets.
$10 MILLION PER MONTH IN ONE SIMPLE SCHEME
We've been investigating scams since 2004, give or take, and have seen con games steadily proliferate as more people come online. And it takes very little to make a killing.
In 2008, we joined ABC News' "20/20" in investigating a number of websites, and we won't soon forget what we saw. One scammer alone, for example, was victimizing thousands and pulling in millions of dollars a month. And he's still living high off the hog, while his victims have never received a penny in restitution.
STATE AND FEDERAL AUTHORITIES OVERWHELMED
When consumers fall prey to online scams, they are often reassured to know that someone will hear their complaint. They can report the fraud to the Federal Trade Commission or the FBI. Or they can notify their state's attorney general or office of consumer protection.
Unfortunately, however, only a tiny fraction of complaints are prosecuted. Why? Con games have grown exponentially and gone international, while enforcement budgets have stagnated or shrunk. (The FTC, for example, has always been a small agency. Its appropriation for 2010 was only $292 million. For perspective, one alleged scammer alone was recently reported to have generated $350 million in his various businesses, almost 20 percent more than the agency's entire budget.)
Don't get us wrong; we're not promoting a political agenda, and more money doesn't always equate to more effective bureaucracies. But we can say that Tombstone was a wilder place before the Earps arrived, and the Internet looks more like Tombstone every day.
THE BAD GUYS LAWYER UP
With enforcement thin and the environment rich in "targets," the bad guys can afford to hire aggressive lawyers. Scammers may be represented by the top law firms in the nation and can spend money freely to resist official action. This means that the good guys have to choose their fights even more carefully by sticking to the "slam dunk" cases and the smaller fry.
More money also means being able to afford better advice on how to skirt or evade the law. The texts on some sites, for example, have been screened by lawyers who specialize in advising dubious marketers. And con men generally can now set up shell companies offshore in a matter of hours, in countries where the laws make it almost impossible to identify the true owners.
It's definitely not your mom's or dad's marketplace, and you need to be cautious and do your homework before making purchases online. Always keep records and notes of your transactions. Therefore, if things do go south, you can call your credit card company immediately and seek a chargeback. That way, it won't be a tragedy if the posse has to show up a little later than you might have expected.
Christine Durst and Michael Haaren are leaders in the work-at-home movement and advocates of de-rat-raced living. Their latest book is "Work at Home Now," a guide to finding home-based jobs. They offer additional guidance on finding home-based work at www.RatRaceRebellion.com. To read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.
COPYRIGHT 2011 BY STAFFCENTRIX, DISTRIBUTED BY CREATORS.COM
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