Internet marketing and retail fraud is a fast-growing area perpetrated by dishonest internet marketing and retail sites involving a variety of products and services. The victim is tricked, by a legitimate-looking site and effective marketing, into giving their credit card information and (or sending funds by other means) in exchange for what they believe to be goods or services. The goods never arrive, turn out to be fake, or are products worth less than those advertised.
Where a credit card is involved, the perpetrators may also use the customer's credit card information to obtain cash or to make purchases of their own. A common example of this type of fraud would be pornographic websites that advertise free access, but require a credit card "for age verification purposes only". The scammers use the credit card information to make fraudulent charges.
Internet marketing and retail fraud involving health products may sell fake or worthless goods. These products might advertise a quick way to lose weight, a cure for a serious disease, or make other sensational claims.
Typical features of an Internet retail health fraud include:
- grand promises, claiming they can "do it all"
- claims to be a "scientific breakthrough", featuring fake doctors or scientists making claims for the product; may include technical jargon that experts in the field will recognize as being used inappropriately
- features a long list of "personal testimonials", without sufficient information to verify them
Consumers find that once these types of scammers obtain their credit card information, fraudulent charge attempts will be made even after the card is cancelled. Credit and consumer protection laws in many countries hold the credit card company liable to refund their customers' money for goods or services purchased with the card that are not delivered. The credit card company then has to absorb the loss, but these costs are ultimately passed on to consumers in the form of higher interest rates and fees.
Read more about this topic: Internet Fraud
Famous quotes containing the words retail and/or fraud:
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—Barbara Ehrenreich (b. 1941)
“Things gained through unjust fraud are never secure.”
—Sophocles (497–406/5 B.C.)