A Working Definition of an Internet Scam or Fraud

The basis of this article comes from our Internet Users Handbook and helps define a scam or fraud for members of our Internet Scams Anonymous (ISA) Groups. With the number of New Internet Users or Newbies is growing at more than 44% per year, these groups are a powerful aid to those joining us online. Readers of our Internet Users Handbook can receive additional support and help from members of our free to join groups.

Our Working Definition of an Internet Scam or Fraud

One of the reasons for our definition is that even with the vast resources available to us online, the definition of what is a scam, used interchangeable with the word Fraud, is extremely limited, while Scams themselves are rampant.

Second anything that does not seem to work for someone is often also called a scam.

In our Internet Users Handbook, 2012, 2nd Edition, we have decided that to follow our scheme of preparing you to do business online while helping you to understand that Scams are your greatest online business risk. Therefore, we have elevated our definition of a scam to a standalone chapter to enable our reader and members to recognize and avoid scam online while doing business.


Our best internet definition comes from Answers/Wikipedia – the free encyclopedia

Internet fraud (or scams) refers to the use of Internet services to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme.

This definition is followed by a broad range of individual scams and frauds examples which are also found in our Handbook Chapter 6, “Various types and Examples of Scams or Frauds”

It is easy to see a trend now where the internet is now facilitating the passing of these scams to your personal mobile devices.

While this definition may be accurate, it needs to be broke down to be more of a working definition and to give online business users a better understanding of our interpretation of a scam, as we will show in the following:

The Internet Scams Anonymous (ISA) Groups expect online businesses to do business as a business. However, we have to except that not all online businesses were founded by business minded professionals. If they are not accessible or their support systems are lacking; then they are not doing business, and are either poor businessmen or are just scamming us.

THESE GUIDELINES HELP PROVIDE A BASIS FOR OUR INTERPRETATION OF A SCAM

A SCHEME THAT PLAYS ON YOUR EMOTIONS TO PARTICIPATE AS IT OFFERS TO SATISFY ONE OF YOUR NEEDS

Your need for immediate cash flow, more money, increased retirement, work at home, and you have failed at everything else, but... It creates an obviously unrealistic expectation that if it were not for the emotion tug to satisfy something, you would normally pass and save your money.

I find that too many Newbies have turned to the internet, perhaps as a last resort to solve their financial problems or crisis. They become prime targets for the first email that hits their inbox that offers them a solution - most are Scams that drives them further into debt.

See how easy, you are out of work or have excessive debt. “Too bad, but I can help, how about a data entry job or real my emails?” Sounds great, but see my post “Would You Believe $273,750-Per Year Just to Read Email”

IF IT IS JUST DOESN’T MAKE SENSE, IS ILLOGICAL AND MAKES YOU PAUSE OR THINK TWICE - THEN AVOID IT

I am sure you have heard the old saying” If it sounds too good to be true ... it probably is.

A SITE THAT FAILS YOUR OWN ONLINE DUE DILIGENCE TEST

Any business off or online should be approached as a business. Does it fit your criteria as a business that you can be excited about, does it fit your values, and is it one that you can promote. Sex sites make money online, but not all of us want to be part of that industry. Mobile communications, IPads, IPhones, Smart Phones and such all are the talk of the town, but I don’t want ads on my phones, so I don’t participate in schemes the put ads on other’s phone regardless of how much money I am passing up or leaving on the table.

AN OWNER WITH A TRACK RECORD OF NON-PERFORMANCE OR REP AS A SCAMMER

If a professional can put up 15 new sites per day then certainly a scammer can do as well. New sites are always a problem, because so many members have that “must get in first” and “start building your Team” mentality. Great for pre-launches and some that never launches.

In social networking, we can watch the members flock to a new site, start creating group after group for the same program to get their personal link out there, praising its virtues, and repeating the hype. In most cases, they get caught up in the emotional flow and promote the site without any form of due diligence.

Sure, I will join a new site, on occasion, as I still research sites for scams and new techniques, but most often I don’t commit or make payment until it has been around for a while. While I may mass market the new site with an impersonal link; I don’t make it one-on-one it with friends, make groups, etc., at least not until I have seen it work and have gotten paid.

Doing a routine Due Diligence for a new site will not work because of the lack of history, however, a WhoIs Ownership search will often help. As said elsewhere, hidden ownership turns me off on new sites. Too often the big dogs and have forgotten their roots and go into hiding rather than embracing business as usual and communicating and treating the last customer as they did the first. Of course others hide, because they should hide.

For those that do provide ownership data, do your own research on the owners; if a red flags turn up; I would pass on the program.

LACK OF DELIVERY

The site does not work, leads and links promised are not provided, and automated systems do not provided the stated results. Payouts are not received within the stated timeframes. The site is often off-line for non-payment of hosting, or whatever. One of the top consumer complaints

LACK OF A RESPONSIVE SUPPORT SYSTEM

Support systems, forums and telephone numbers that do not respond to your technical or other questions; probably means that they are just a valueless front.

LACK OF COMMUNICATIONS AND ACCESSIBILITY

Other than support, if it is hiding its identity on www.whois.com, and related sites, then it may be assumed that the owners have something to hide. Most successful businesses have channels of communication, support, help desks, forums, and responsive email. Having said that, see next.


While I am here, if this sites are making so much money, Why don’t they have international toll-free numbers, and a 24/7 availability. Check out all the big boys, Microsoft, Adobe, and others that have forgot their greatest assets, we the customer. Are we not an international community? We don’t want your 9-5 mentality, because we are online 24/7 somewhere in the world.

One of my larger social network affiliations not only has a 9-5 mentality, but also shuts down their ticket system after working hours. They won’t even take your problem or complaint on a ticket and promise a response with 24-48 hours. Makes me wonder just where are their priorities?

SCAMMERS ARE SPAMMERS TOO

Continual bombardment of emails from the same person or source with the same emails titles, etc. Scams are primarily delivered via email. On the other hand, unsuspecting affiliates are also great promoters of scams. A complaint that we often see in membership sites. More often, than not, these same Affiliates have neither done their due diligence nor have they ever been paid. These same affiliates tend to jump on every new program that comes along and start promoting it. Good, I am repeating myself! Hmm, I do that too as a trial balloon, on free to join sites.

ARE TRAINING, TOOLS AND RESOURCES PROVIDED FOR OUR SUCCESS?

As an affiliate, we expect that the company will help train us, or at least provide us with the training, tools and resources so that we can help ourselves. Sure, many offer tools and resources, but often they are non-specific to their site, where are the Welcome Letters, the how-to use the site or getting started guides, who is monitoring your success, where is the follow-up?

Oh yes, the forums. You have tried them, haven’t you? Some are great; some are just fronts for their scams with no real information or help changing hands. Forums are now being used to give some form of credibility to the site and program. Even some of the big payout PTC/PTR’s also offer a forum, but your due diligence will show red flags all over the net.

If the program is not a scam, then why do the owners not monitor and provide for the success of their affiliates? Maybe the business owners are just not business minded. How many offline companies, unless they are using independent contractors, have an extensive training and follow-up program to help assure the success of their affiliates? After all, aren’t they trying to protect their brand?

So perhaps, not always a scam, just poor businessmen. Even with the best of times, partnerships break up, outsourced hosting fail, spam complaints, outsourced payment gateways fail, and business problems come with the territory on or offline.

TIP: Remember also, everything on the net can be duplicated, copied and/or falsified, do not just rely on the so-called payment proofs, testimonials, etc. alone as your gauge to a successful program.

Even with a great program, success is up to you, one man’s scam may be another man’s bonanza.