FTC`s new video helps customers recognize online scams and fraud

The FTC has created a new video and provided resources that will help consumers protect themselves from online scams and fraud. According to the FTC, online scams and frauds, especially fraudulent business opportunities, have been on the rise due to the declining economy.

In addition to the video and resources, it introduced an Internet sweep called “Operation Short Change,” and charged 8 companies with fraudulent activities. Each new case is charged with deceptive and unfair practices. Other charges include performing illegal electronic funds and transfers as well as violating the Telemarketing Sales Rule.

The video helps consumers identify online scams and fraudulent business opportunities and also shows how easy it is to fall victim to these schemes. The video features a former scam artist who served prison time for his crimes. He shares how the scam artists use high-pressure sales tactics and often hypes up their sales pitch with bogus celebrity endorsements. Besides, he explains the tactics used to target victims, steps consumers can take to protect themselves, tips for recognizing online scams, frauds, and bogus business opportunities.

Eileen Harrington, Deputy Director of the Federal Trade Commission Bureau of Consumer Protection explained that business opportunity fraud occurs when someone tells you how to get rich quick schemes, promising consumers jobs that don’t exist, advertising phony government grants that provide great amounts of money, debt relief and reduction scams, and fraudulent credit and debit card charges. They do so in a way that guarantees and ensures your success. She also added that anyone considering investing in a business opportunity should request disclosure documents including earning disclosures from previous investors. And if a company will not provide you with those documents, don’t go near the opportunity: it’s a scam.