Surfing Safely

(CBS)  The Internet has opened a world of opportunity for investment and commerce. But it has also opened new routes for some old games of fraud and deception.

Marianne Schwanke, an attorney with the Federal Trade Commission, says the cardinal rule for steering clear of a swindle - online or offline - is: If it sounds too good to be true, it probably is.

The following are Schanke's tips for avoiding some of the most common Web scams:

Internet Auctions
When bidding through an Internet auction, particularly for a valuable item, find out as much about the seller as possible and insist on paying with a credit card or using an escrow service.

Internet Access Services
If a check arrives at your home or business offering free or extremely cheap Web access, read both sides carefully and look inside the envelope to find the conditions you're agreeing to if you cash the check. Then read your phone bill carefully for unexpected or unauthorized charges.

Credit Card Fraud and Identity Theft
Share credit card information only when buying from a company you trust. Dispute unauthorized charges on your credit card bill with the bank that issued the card. Federal law limits your liability to $50 in charges if your card is misused.

Also, only give out the minimum amount of information required to complete a transaction. There is no reason to give your social security number or mother's maiden name to make a simple purchase.

Pyramid Schemes
Some multi-level marketing programs are actually illegal cons that promise big profits for selling the distribution rights to a product. If the products or services are sold only to distributors like yourself, and not to actual consumers, there's no way to make money.

Avoid plans that require you to recruit distributors, buy expensive inventory or commit to a minimum sales volume.

Travel and Vacation
Get references on any travel company you're planning to do business with. Then, get details of the trip in writing - including the cancellation policy - before signing on.

Business Opportunities
Talk to other people who started businesses through the same company, get all the promises in writing, and study the proposed contract carefully before signing. Get an attorney or an accountant to take a look at it, too.

Investments
Check out the promoter with state and federal securities and commodities regulators, and talk to other people who invested through the program to find out what level of risk you're assuming.

Health Care Products and Services
Consult a health care professional before buying any "cure-all" that claims to treat a wide range of ailments.

General Tips

• Be wary of extravagant claims about performance or earnings potential. Get all promises in writing and review them carefully before making a payment or signing a contract.
  
  
• Be skeptical of any company that doesn't clearly state its nam, street address and telephone number. Check it out with the local Better Business Bureau, consumer protection office or state attorney general.
  
  
• A professional-looking site doesn't necessarily mean a reputable company is behind it. Web sites are cheap and easy to produce so make sure there is some substance behind the digital bells and whistles.
  
  
• Read the fine print and all relevant links. Fraudulent promoters sometimes bury the disclosures they're not anxious to share by putting them in small type or in a place where you're unlikely see them.
  
  
• Look for a privacy policy. If you don't see one - or if you can't understand it - consider taking your business elsewhere.

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