The Latest Internet Scam

On this past Monday I bought a door gasket for my dishwasher from an Internet parts house. They had an excellent web site. I put in the brand and model number of my dishwasher and it spit back several exploded drawings. I clicked on the drawing containing the door assembly, then clicked on the gasket, and went to checkout. There was nothing unusual until I completed the order. Then a new window opened asking me to take a survey. The hook was $100 in free gifts. I assumed this would be discount coupons on future purchases. I was in a good mood and happy with the service so I went ahead with the survey. I began to get suspicious when I noticed a number of the questions did not apply to an appliance parts house. I then noticed the window was from a third party, not the vendor. I thought, “I guess they are just using a generic survey service.” I finished the survey and was given the opportunity to get some magazine subscriptions. This was supposedly free but there were some prices on the magazines. I have a house full of magazines, books, and catalogues. The last thing in the world I want is another magazine adding to this clutter. At this point my fraud antennae started waggling around a bit and I exited the window. This action returned me to the appliance parts house page for a next action.

The following day a friend of this blog gave me some information on a new Internet scam. I had just about stepped into it.

The following information comes from an article by Lolita Baldor (AP). A week before, the Senate Commerce Committee blasted the unethical business practices of three Internet companies Affinion, Vertrue, and Webloyalty for using aggressive sales tactics to scam millions of customers. Just before the sales confirmation appears on a legitimate Web purchase, the customer is offered a cash back coupon, a movie ticket, or some other reward. When the consumer clicks on the offer, believing it to be a part of their purchase and that company’s website, the vendor sends ALL OF THEIR CREDIT CARD AND PERSONAL INFORMATION from the legitimate purchase to the third party. If the customer accepts the offer, they have just joined one or more subscription services. These services charge monthly fees for bogus offers. The customer never notices it until mystery charges begin appearing on their credit card statements.

What is really despicable about this practice is that reputable companies are taking kickbacks from Affinion, Vertrue, and Webloyalty. The following information comes from Senator John D. Rockefeller report dated November 17, 2009. It concerns a Senate investigation of the aforementioned three companies.

“First of all, we expect the merchants we do business with on the Internet to treat us honestly and fairly. We expect online merchants to clearly explain their prices and terms to us, so we know what exactly we’re getting if we decide to spend our money at their websites. And when we agree to buy something from them, we expect merchants to protect our credit card and other financial information that we share with them. That’s why it’s so disturbing to me to learn through investigation what’s happening to millions of American consumers every day who are shopping on the Internet.”

Here is a list of reputable Web vendors who have all received more than $10,000,000 in kickbacks from these disreputable companies. (Exhibit 4 from the Senate’s Investigation)

1-800-Flowers.com
Buy.com
Classmates.com
Confi-Check
Expedia/Hotels.com
Fandango
FTD
Hotwire
InQ
Intelius
Movie Tickets.com
Orbits
Priceline
Redcats USA
Shutterfly
Travelocity
US Airways
VistaPrint

Here is a partial list of vendors who received between $1,000,000 and $10,000,000 in kickbacks.

Airtran Airways
American Greetings
Avon
Barnes and Noble
Continental Airlines
eHarmony
Hertz
J.C. Whitney
Lillian Vernon
Miles Kimball
Pizza Hut
Time Life
Victoria’s Secret

If what I was offered was something I really wanted, I might have bitten the hook. I am still nervous that something might get charged to my card by these scoundrels. I will call my credit card service every few days over the next couple of weeks and listen to the nice robot man recite my last five transactions until I am satisfied that I am completely in the clear. May God protect us and deliver us from such snares.

Two from Proverbs

Proverbs 13:11 (NIV)

Dishonest money dwindles away, but he who gathers money little by little makes it grow.

Proverbs 21:6 (NIV)

A fortune made by a lying tongue is a fleeting vapor and a deadly snare.