Internet Law News

How Should I Deal With Internet Fraud?

Judging by the sheer number of solicitations and "can't miss" propositions that you can see every day in your e-mail mailbox or posted on message boards or Web sites, Internet scams may seem inescapable. While you can't wholly avoid seeing online solicitations that may be fraudulent, here are some tips on how to deal with them. Don't Judge by Initial Appearances. It may seem obvious, but consumers need to remember that just because something appears on the Internet - no matter how impressive or professional the Web site looks - doesn't mean it's true. The ready availability of software that allows anyone, at minimal cost, to set up a professional-looking Web site means that criminals can make their Web sites look as impressive as those of legitimate e-commerce merchants. Be Careful About Giving Out Valuable Personal Data Online. If you see e-mail messages from someone you don't know that ask you for personal data - such as your Social Security number, credit-card number, or password - don't just send the data without knowing more about who's asking. Criminals have been known to send messages in which they pretend to be (for example) a systems administrator or Internet service provider representative in order to persuade people online that they should disclose valuable personal data. While secure transactions with known e-commerce sites are fairly safe, especially if you use a credit card, nonsecure messages to unknown recipients are not. Be Especially Careful About Online Communications With Someone Who Conceals His True Identity. If someone sends you an e-mail in which he refuses to disclose his full identity, or uses an e-mail header that has no useful identifying data (e.g., "W6T7S8@provider.com"), that may be an indication that the person doesn't want to leave any information that could allow you to contact them later if you have a dispute over undelivered goods for which you paid. As a result, you should be highly wary about relying on advice that such people give you if they are trying to persuade you to entrust your money to them.
 
Watch Out for "Advance-Fee" Demands. In general, you need to look carefully at any online seller of goods or services who wants you to send checks or money orders immediately to a post office box, before you receive the goods or services you've been promised. Legitimate startup "dot.com" companies, of course, may not have the brand-name recognition of long-established companies, and still be fully capable of delivering what you need at a fair price. Even so, using the Internet to research online companies that aren't known to you is a reasonable step to take before you decide to entrust a significant amount of money to such companies. Research The Prospective Seller Carefully. If you haven't had personal (and favorable) experience with someone who's offering certain goods for online sale or auction, look for sources of information at the Web site where the offeror's information is posted, and at other Web sites. Some online auction sites provide their member with opportunities to provide "feedback" on their experiences with particular sellers (although certain sellers have tried to manipulate the "feedback" process by posting favorable but false reports about themselves). Pay by Credit Card or Escrow Service If Possible. If you charge your online purchase on a major U.S. bank-issued credit card, your liability may be limited to $50 under any circumstances, and at least one credit-card issuer has recently indicated that it will waive the $50 deductible. In the alternative, some online auction Web sites offer escrow services that (for a small percentage) will guarantee delivery of the ordered goods before releasing your payment to the seller. Remember that in any "get-rich-quick" scheme, there's only one person who's guaranteed to get rich quick: the person promoting the scheme. If you're thinking about pursuing some online investment opportunity, start by recognizing that you need to take your time in making decisions about what you do with your hard-earned money. Sound investing for the long term takes patience, the will to ignore momentary market fluctuations, and a carefully thought-out plan for reaching your investment goals.

Finally, use one or more of the many Internet search engines - like the ones available on your Web browser - to help you expand your research on the company's background and market performance. If you use these resources, and find that one or more of the people behind your prospective investment has been subject to legal action, especially for investment offers, it's a very safe bet that the investment is a high risk at best and an outright scam at worst. Boilers and "Boiler Rooms" Need High Pressure To Do Their Jobs. If someone online is insisting that you invest right away, or telling you that someone else will get the "deal of a lifetime" if you wait, ask yourself at that moment whether you're feeling pressured and uncomfortable. If you are, that's a major red flag warning you away from the investment. Legitimate businesspeople and brokers don't need to subject you to "high-pressure" tactics to make you commit to an investment decision before you're ready. That's why the operations scam artists run are called "boiler rooms": like steam boilers, high pressure is what they're designed to generate (along with a wide array of lies, half-truths, and deceptive statements). If, after you've gone through all of the steps listed above, you still feel like the prospective investment is worth considering, talk to a broker, financial adviser, or banker with whom you've done business for a while, and ask whether his or her firm or financial institution can offer you a comparable type of investment with less risk. The chances are that they'll say no, but they'll be willing to take time with you to walk through the information you have about the prospective investment and point out the risks you may be taking, as well as possible alternative investments that offer more realistic returns. You lose nothing by consulting an investment professional about any major investment decision - and you stand to lose a lot if you don't.

A Wisconsin lawyer who specializes in the new field of Internet Law can assist you with all of your legal worries pertaining to Internet / Cyber laws. From assistance in patent application to filing claims of infringement, an Internet lawyer will help you with any topic of concern. Contact us know.

	Did You Know?
	1996 Electronic Freedom of Information Act Amendments (EFOIA) The 1966 Freedom of Information Act (FOIA) permits any person to request access to federal agency records or information. Federal agencies are required to disclose records upon receipt of a written request, except for records that are protected from disclosure by nice exemptions or three exclusions in the Act. Persons are also able to request documents in an electronic format under the 1996 Electronic Freedom of Information Act Amendments (EFOIA).