site loading...

Internet Scams

In chain letter scams, a bulletin board message may promise substantial earnings to computer users who send one dollar to each of the 10 individuals appearing on the on-line screen. However, victims not only lose their money, they also are required to list their name and address, which further exposes them to potential fraudulent activity.

Consumers should also be wary of messages on bulletin board services from supposed “experts” offering advice on financial matters. Exaggerated investment opportunity claims should be thoroughly investigated. These offers often are misrepresented and the advice may be misleading.

Some consumers have responded to messages from promoters hyping thinly-traded, low priced penny stocks as good investments with high earnings potential. In fact, the messages are false, but individuals begin to buy the stock causing it to increase in value.The fraudulent promoter then “dumps” the stock originally purchased at a low price and makes a large profit before the stock price plummets.

Consumers should carefully scrutinize investments that are being touted via on-line services and not assume that the service polices its bulletin boards for fraud. The Internet is a tremendous source of information for consumers, but the information should be viewed with the same caution as other forms of media.

The Better Business Bureau does not endorse, recommend, or disapprove any product, service or organization.