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Blog I dedicate to exposing ways of losing money on the internet. I do the research and tell you how to do your own research. Don't take my word for it. Do your own homework. Check the external references area for links to other sites and keep reading.

Also check out the new scams-xposed store on amazon.

Tuesday, December 15, 2009

# 10 SCam of the decade - "Rewards" Programs






I am not talking airline points, I am talking about the recurring charges that get added to your credit card bill for a service you signed up for automatically when purchasing something online.  The click here to save $10 button.  Of course to save $10 you need to subscribe to the $24.95 per month program, the details of which where not clear.   This started before I did so here is a reference to read more about it here.  http://www.trap17.com/index.php/reservation-rewards-scam33_t56496.html  and http://www.creditcardguide.com/creditcards/news/victim-stealth-credit-card-fraud-131/

Picture taken from http://therandomizer.wordpress.com/2007/11/16/scammed-a-108-lesson-on-online-theft/.  ( hope he doesn't mind)

Personally I am still trying to recover the funds taken from my credit card.   My wife clicks every damn button.

To protect yourself from this scam always read the terms and conditions of the service BEFORE clicking the I agree button.

Another strategy offered by some credit cards is the one time use number.  This way the credit card number is useless after the first transaction.

If you have fallen victim to this scam there was a class action lawsuit you may still be able to participate in check here http://www.webmarketingsettlement.com/index.php3.

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SCAM Indicators

  • Endorsemts with no proof.
  • Your gut tells you something is wrong
  • Vague description of what you're buying
  • Pay little for high value item
  • Simple steps anyone can do
  • Promises to tell you a secret
  • Begs for trust
  • Avoids telling the price
  • Too good to be true

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