Going on-line is like being a small-town guy going to New York City. You don't blink for fear of missing something amazing. You've got access to anything you want, but it seems like there's someone around every corner, just itching to pick your pocket. For nearly every opportunity on-line there is a corresponding internet scam.



The Internet offers both the legitimate and the crooked the same benefits. It gives offers an almost unlimited audience. It's cheap, easy, fast and global and it's largely unregulated. Add to that the difficulty that the legal system is having keeping up with current technology and you have a perfect breeding ground for internet scams. Antivirus software doesn't touch scams and a firewall won't protect you from internet scams either. How can you maneuver on-line but avoid internet scams?

Common sense is always your best guide. The number one rule, above all others, is to guard your personal information and keep account numbers and personal identification numbers to yourself. If a particular website calls for your personal information, do your research about that site to ensure it is legitimate. If you do your homework and take the time to understand who is on the other end of your transaction, you have a far better chance of success. Additionally, you'll want to engage your common sense and utilize a little healthy skepticism.

The Most Common Problems

Internet scams take many forms but many have roots in old school frauds. False charities and fake contests aren't new but the Internet has breathed new life into these old lines. If you are asked to give your hard-earned dollar, make sure you investigate where it's going. Don't give your bank account or PIN for donations. Sad tales are easy to make up so don't fall for them. If they can't provide a tax ID number for deductions, if they aren't mentioned anywhere but their own website, they aren't likely legit. If you have to pay a fee to collect your contest ?winnings?, you really haven't won anything.

Pyramid schemes are another oldie gaining new life. The Internet has made some subtle changes in this racket. Mass e-mails and the global nature of the Internet open the whole world ? literally ? to the scammer. It's not very difficult for a skilled individual to personalize an e-mail. Don't think it's from someone you know or can trust just because they've used your name. There are some genuine multilevel companies doing business, but plenty of questionable ones exist as well. If money is made from the sale of actual merchandise and not from registration fees, chances are better that the company is valid.

Work-at-home scams are one of the newer problems but their roots are in pyramid schemes. Supposedly, you can make money stuffing envelope s or assembling widgets for a supply fee, similar to the pyramid's registration fees. The materials arrive and you find that the real money is made by perpetuating the offer that caught you to new ?employees?. Any actual stuffing or assembling will likely not meet their strict quality standards. Other employment scams send e-mails asking for your social security number for a background check or other pre-employment screening. You should never have to pay a company in order to work for them. If an unsolicited e-mail arrives from a mystery employer or unverifiable agency, it's probably a scam.

The most prevalent internet scams are on-line auctions. A transaction is made but the merchandise is either never delivered or the payment is fraudulent. Ebay is making great strides in protecting its citizens through its association with Paypal but you should still be very wary of sending any payments or merchandise overseas. Use a credit card with limited liability for disputed charges and shop with long-term members who have proven track records. Once your money leaves your borders it is nearly impossible to track or recover.

The same logic applies to investments, stocks and securities. Look for less obvious methods of subterfuge in the sale or promotion of questionable stocks. Scammers may use on-line chat rooms, bulletin boards or newsletters to promote their products. The boards may be valid, but the information a promoter puts up may be misleading or even completely false. Do not trust anything that sounds like ?insider? information. Remember that shady promoters can use multiple log-on names to further hide their intentions and identities. Investments that offer very high returns with purportedly low risks are not usually trustworthy. High returns invariably involve higher risk. The SEC, the State Securities Regulators and FINRA (Financial Industry Regulatory Authority) are very valuable resources for researching companies.

There are many other ways to fall into internet traps, but if you follow these three simple rules, you should remain safe.

1. Keep your account numbers to yourself.

2. Research every claim before you invest.

3. Exercise reasonable doubt and don't treat the Internet like it's an infallible source of information.

Make sure you are always on guard while you're on-line, and you can avoid scams at all costs.