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Fighting
Internet and Business Scams - The 21st
Century Background Check
by
Bruce Prokopets
You
would think that the internet scam artists
would take a vacation from bilking unsuspecting
victims during such recent natural disasters
as hurricane Katrina, and the tsunami
that killed over a quarter million people
right after Christmas. "Not so.",
says Jim Merrick of Click First, a one
stop online informational portal that
provides background information about
businesses and individuals (www.clickfirstlinks.com).
Merrick warns that some people have no
mercy when it comes to fraud. "Just
look at what happened recently after hurricane
Katrina", states Merrick, "internet
scammers posing as the Red Cross have
been collecting funds via unsolicited
emails. Can you believe it? These guys
just never give it a rest."
More
than half the donations to the Red Cross
have come over the Internet, but a number
of scam sites have cropped up that emulate
the Red Cross Web page. In some cases,
after users donate to a fraudulent outlet,
the site instantly links to the official
Red Cross page, so givers continue to
think they've just given to the Red Cross.
In other instances, e-mail messages asking
for donations include a link to a phony
charity.
Merrick
also details what occurred after Christmas,
several days after the tsunami caused
by underwater shifts in the seabed ravaged
the coastline of dozens of countries lining
the Pacific and Indians oceans. "One
group posed as a well known international
aid group named Oxfam," describes
Merrick while sitting in the offices of
Click First, "[the group] sent an
email message that appeared to be from
the disaster relief agency branch of Hong
Kong which urges readers to deposit money
into a bank account in Spain. Oxfam officials
contacted police about the scam after
finding out."
Merrick
goes on to say that people who are fooled
into sending funds aren't always the elderly,
who are normally the prime candidates
for being taken. "I started Click
First because I was burned for over $70,000
by a complex business scheme", laments
Merrick. "What threw me off is that
I actually did what I thought was a pretty
thorough job of online detective work."
Merrick relied on his long time banker
to advise him on sources of capitol for
a new business he was starting up. The
banker referred Merrick to a gentleman
who had carefully concealed his true background
through an identity theft committed years
earlier. Even after Merrick had brought
in a former law enforcement professional,
who had access to government databases,
he was still hoodwinked by the misguided
talents of this experienced thief. "If
that guy used half of his abilities, engaged
in a legitimate profession, he would be
a millionaire." stated Merrick.
Internet
scams and complex business fraud are fast
becoming the leading type of non-violent
crime in the country. Just days after
Hurricane Katrina struck, the FBI's top
cyber-crimes official, Chris Swecker,
Assistant Director of the FBI's Criminal
Investigative Division, said the FBI had
already opened eight investigations into
potentially fraudulent sites related to
hurricane Katrina. Swecker declined to
say exactly how many investigations are
open at present.
Online
scammers robbed Americans of more than
$437 million in 2003, mostly using stolen
identities, fake Internet auctions and
fraudulent shop-at-home schemes according
to the Federal Trade Commission (FTC).
In its year-end Consumer Fraud and ID
Theft Report, the FTC said it received
more than half a million consumer complaints
during 2003, a 40 percent jump over complaints
in 2002. More than 40 percent of all complaints
were related to identity theft and other
Web-related scams.
Small
businesses are more prone to fraud than
large companies. Small businesses experience
fraud losses at a rate 200 times that
of the largest businesses, with more than
50 percent of frauds involving losses
of less than $100,000, according to a
2002 survey from the Association of Certified
Fraud Examiners. Seventy-five percent
of fraud is not detected or reported and
costs the average business 0.5 percent
to 2 percent of its gross revenue. The
annual cost of fraud in the United States
is $600 billion.
Merricks
solution to this ever growing problem
was to develop a turn key business and
private individual background check portal
that could achieve accurate results in
just 3 clicks. "The problem that
I encountered, when I was trying to protect
myself and my colleagues, was that there
was no all encompassing web site or source
of information I could go to", discusses
Merrick, "there were several places
I could retrieve information, but none
were linked to the other, and the fellow
that scammed our group new the weak points
and took advantage of the system."
Using the Click First site you can, in
three clicks or less, find information
on any doctor, lawyer, accountant, contractor,
or do a complete background check on those
people that you are potentially going
to deal with. The Click First site also
has a special "Scam Watch" alert
on the home page, which provides information
about the most popular or current scams.
Billy
Mays, a nationally known spokesman for
name brand products, was drawn to Merrick's
project because of its consumer protection
function. Mays stated bluntly that "You
can't afford not to know" the information
that Click First provides. Mays is now
actively involved in the development end
of the business.
Unscrupulous
individuals aren't going to go away or
take a hiatus when disasters affect the
masses. The internet can either be the
tool of the criminal element or the defensive
shield protecting the vigilant. Jim Merrick
decided that he didn't need to make the
same mistake twice, and in fact went a
step further when he developed the 3 click
fraud protection system designed for businesses
or individuals. "Why let these cyber
thugs take advantage of the honest guy?"
proclaims Merrick. "The technology
was there to stop them. I just stepped
up and said enough was enough." Let
this being a warning to those who are
planning new scams--a new sheriff is in
town.
Bruce
Prokopets Executive Editor Press Direct
International www.pressdirectinternational.org
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Biz Opp Scams