NCL Releases Top Ten Internet Scams

WASHINGTON, DC . . . Web auctions are the number one scam on the Internet, according to statistics released by the National Consumers League's Internet Fraud Watch. Susan Grant, NCL's vice president of public policy, released a list of the Top Ten scams on the Internet today in testimony before the Senate Permanent Subcommittee on Investigations.

The Top Ten Internet Scams Are...

"The Internet has become the newest frontier of consumer fraud," Grant told the Senators. "Some of the scams we see on the Internet, such as pyramid schemes, are as old as the League. Others are more recent, springing from advancements in technology that have created new types of products and services."

While no one knows the full extent of Internet fraud, Grant released data showing that E-mail inquiries have increased ten fold since the inception of the Internet Fraud Watch program. Reports of possible Internet fraud have tripled, from an average of 32 per month in 1996 to nearly 100 per month in 1997. "While the 1,152 fraud reports we received last year are just the tip of the iceberg, they present a revealing picture of the types of scams that are on the web," said Grant.

The National Consumers League, founded in 1899, is America's pioneer consumer organization. NCL is a private, nonprofit membership organization dedicated to representing consumers on issues of concern such as fraud, health care, fair labor standards, food and drug safety, and telecommunications. NCL's three-pronged approach of research, education and advocacy has made it an effective advocate and source of information for consumers and workers.

NCL runs the National Fraud Information Center, which was created in 1992, and the Internet Fraud Watch, which was created in 1996 and operates in tandem with the NFIC. NCL staff answers the NFIC/IFW 800 hotline, which consumers from across the United States can call to receive advice and tips on how to spot possible telemarketing or Internet fraud and to report it. Fraud reports from consumers are sent within minutes to the appropriate law enforcement agencies, including the Federal Trade Commission and state attorneys general.

For more information, or to become a member of the League, write or call the National Consumers League at 1701 K Street, NW, Suite 1200, Washington, D.C. 20006, (202) 835-3323 . To reach the National Fraud Information Center or Internet Fraud Watch programs, call (800) 876-7060 or visit the web site at www.fraud.org.