The Internet serves as an excellent tool for investors, allowing them to easily and inexpensively research investment opportunities. But the Internet is also an excellent tool for fraudsters. That's why you should always think twice before you invest your money in any opportunity you learn about through the Internet. The Internet allows individuals or companies to communicate with a large audience without spending a lot of time, effort, or money. Anyone can reach tens of thousands of people by building an Internet web site, posting a message on an online bulletin board, entering a discussion in a live "chat" room, or sending mass e-mails. It's easy for fraudsters to make their messages look real and credible. But it's nearly impossible for investors to tell the difference between fact and fiction.
Spam (junk e-mail) is so cheap and easy to create; fraudsters increasingly use it to find investors for bogus investment schemes or to spread false information about a company. Spam allows the unscrupulous to target many more potential investors than cold calling or mass mailing. Using a bulk e-mail program, spammers can send personalized messages to thousands and even millions of Internet users at a time.
Some examples of Internet fraud are:
Phishing scams
Phishing is a type of deception designed to steal your identity. In phishing scams, scam artists try to get you to disclose valuable personal data—like credit card numbers, passwords, account data, or other information, by convincing you to provide it under false pretenses. Phishing schemes can be carried out in person or over the phone, and are delivered online through spam e-mail or pop-up windows.
A phishing scam sent by e-mail may start with con artists who send millions of e-mail messages that appear to come from popular Web sites or sites that you trust........
