Consumers who visited a pornographic website (www.sexygirls.com) last month got a big surprise on their phone bills. After a few teaser pictures, surfer was told he/she needed to download a special program to view the archived images. That program was actually a viewer with an entire communications suite hidden deep inside (a non-self propogating Trojan Horse). The program disconnected user from his/her ISPs, shut off the volume on the modem if it was computer controlled, and dialed a number in Moldova -- a small, former republic of the Soviet Union wedged in between the Ukraine and Romania. All the while the consumer was on the website, and even if he/she then browsed other sites on the World Wide Web, the Internet access was being provided through the Moldova number, resulting in huge international phone charges! Consumers didn't know that until their phone bills arrived. According to the Toronto Star Business Reporter, there are Canadian reports of bills into the thousands.

The Toronto star also reports that the Royal Canadian Mounted Police has requested all calls from Canada to that number in Moldova be blocked. Bell Canada is attempting to provide relief for Canadian consumers.

US consumers should contact their long distance providers if they find these unexpected charges on their bill.

The RCMP has also required the owners of sexygirls.com to place a disclaimer on the site, alerting consumers to the presence of the communications software in the viewer. The disclaimer also tells consumers how to disconnect if they do not wish to use the server in Moldava.

In November, Internet Fraud Watch warned consumers concerning the possible dangers of downloading programs over the Internet. Some tips:

• Don't download unnecessary items. If it's just a piece of razzle-dazzle, don't bother. It will only take up space on your hard drive and perform no useful function. If there's no gain for you from the program, there's no reason to take a risk.
• Only download from sites you know and trust. While even a major corporations site can sometimes have a viral infection, a lone programmer might be using an attractive piece of code as a delivery vehicle for his pet virus.
• Don't download material directly onto a computer network at work. First download it onto a stand alone PC. Test it out. Make sure it doesn't have any malicious side-effects. Check that machine for known viruses. Only at that point should you install the downloaded program on a networked machine.
• If you feel you must download files, keep track of what files you have on your system and what files are created during a program installation. That way you can easily uninstall any program if you find it to be undesirable. This also helps in detecting new installed files that aren't supposed to be there.

Remember, your main worry is an executable file (i.e. a program or application). Despite what you hear all over the Internet, you cannot get a virus from a piece of e-mail.

If you are having a problem with calls to Moldova, the connection will only be made if you attempt to use the viewer. If you try to use the viewer, shut down your machine after you are finished at that site. If you wish to remove the viewer altogether, the file name is david.exe (for IBM users). If you are in Windows, it should be in your program folder.

There is some truth in it. Abbot Labs did settle an FTC, not FDA, lawsuit over price-fixing that applies to consumers only in the states of Florida, Illinois, Louisiana, Minnesota, Mississippi, North Dakota, South Dakota, Tennessee and West Virginia. Consumers in those states with properly aged children can apply until January 31, 1997, to receive anywhere from $5 to $45 dollars after filling out a form and answering questions concerning Similac usage.

Many people worried that this was an attempt to collect social security numbers and birth certificates. Yet, the ads all instructed consumers to send the information to the real claims settlement office for the lawsuit. The address was right; the terms of eligibility, means of application, and amount of claim were all wrong. Despite the apparent harmlessness of the ads, DC Police continue to warn parents never to give out personal information, such as social security numbers, of themselves or their children, without checking to verify that there is a legitimate reason to provide such.

For a recorded message with more information about the settlement, including how to file a claim, please call 1-800-585-1151.

First, try to resolve the problems with the broker or, if that is unsuccessful, find out who the firm manager is and contact that person. If the problem still is not resolved, it's time for the next step.

Sound good? It isn't. First of all, you have to pay a large up-front fee before you get anything. And the card you receive is not a Visa or MasterCard; it's a catalog card good for use only on the company's own over-priced, low-quality merchandise. To make matters worse, you may have to pay additional fees or make cash deposits on purchases before you can charge the remainder on their "major credit card." And since the merchant doesn't report payment activity to any of the credit reporting bureaus, using the card does not improve your credit rating.

What happened to that Visa and MasterCard you thought you were promised? Turns out that is a separate deal. What the company meant by "you will be processed" was that it would help you file an application for a Visa or MasterCard (something you can do yourself through any bank or lending institution). And the card that you get may have to be secured by a deposit in the issuing bank.

Give yourself credit! Don't fall for these scams. It's unlikely that anyone is really going to give you an unsecured "major" credit card if you have bad credit. You can improve or build your credit record by getting a secured credit card yourself, without having to pay someone a fat fee for helping you with the application. If the promise is for a card that is accepted at major retail stores, as exactly who it's from and the names of the stores where it can be used. Chances are you've never heard of them!

Before you send money to get credit, read the FTC brochure on "Gold" and "Platinum" Cards by clicking here. Also, call the NCL's National Fraud Information Center at 1-800-876-7060 to find out more information, for advice, and to report an incident.

If you are having credit problems, contact Consumer Credit Counseling Service at 1-800-388-2227 for advice and assistance.

• Don't download unnecessary items. If it's just a piece of razzle-dazzle, don't bother. It will only take up space on your hard drive and perform no useful function. If there's no gain for you from the program, there's no reason to take a risk.
• Only download from sites you know and trust. While even a major corporations site can sometimes have a viral infection, a lone programmer might be using an attractive piece of code as a delivery vehicle for his pet virus.
• Don't download material directly onto a computer network at work. First download it onto a stand alone PC. Test it out. Make sure it doesn't have any malicious side-effects. Check that machine for known viruses. Only at that point should you install it on a networked machine.

By practicing proper computer security, you can avoid losing time, energy, and possibly money.

If you wish to report an incident, or ask any questions, call the NCL's National Fraud Information Center at 1-800-876-7060.

The Federal Trade Commission is currently cracking down on these abuses with its Project $cholar$cam. As a part of that effort, the FTC announced yesterday that it had won an order temporarily halting the activities of Deco Consulting Services, Inc., of Fort Lauderdale, Florida, and freezing that company's assets. Deco allegedly charged thousands of students between $179 and $199 "for information that turned out to be useless, outdated or not what was promised," according to the FTC. The FTC also alleged that the company did not disclose its refund restrictions before consumers purchased its services. In addition to the company, FTC named Jesse Nieves, Deco's general manager and a defendant in a prior FTC case involving deceptive telemarketing, in the complaint. For more information on the FTC case, click here.

The FTC has also issued a new brochure on Scholarship Scams. It provides tips on how to avoid being fraud and how to find legitimate financial help. To view the brochure online, click here.

If you wish to report an incident or would like advice, call the NCL's National Fraud Information Center at 1-800-876-7060 or send us a message by clicking here.

If you would like more information on Pyramid Schemes or would like to report an incident, call the NCL's National Fraud Information Center at 1-800-876-7060. If you are a reporter and would like more information, please call Cleo Manuel or Kim Michalski at 1-202-835-3323.

Here's a typical scenario. First, the criminal posts to a newsgroup offering low cost webpage storage and design. A businessperson considering going online sees the post and asks for more information. He or she hears tales of virtually unlimited disk space, incredible tech support, incredibly quick download speeds, registered virtual domain names and low costs. Thrilled, the business signs up, sending in the specifics for the page and maybe even getting sent a draft for proofing. But, no page ever shows up.

At first, the businessperson thinks it's simply a delay. These things happen all the time in the computer world. But, weeks later there's still no page. After checking around, the businessperson finds that the domain name that was requested was never registered with InterNIC. Soon, contact is lost with the crooks altogether. The business has spent hundreds, maybe thousands of dollars and gotten nothing.

Website design and storage isn't the only legitimate service that can be perverted into a scam. But with good sense and diligence you can avoid a promising service from turning into a whopping loss. 1) Ask for references and check to make sure the references are real companies. 2) Get everything in writing. 3) Check the progress of the work along the way. For example, if the company promises to handle the registry with InterNIC, check to make sure your domain name is registered. 4) Don't pay for everything upfront. Insist on reserving part of payment until after work has been completed satisfactorily.

There are also some things you shouldn't do, just as there are for equipment sales. Don't fall for the offer if 1) the item is being sold for much less than normal, 2) the vendor pressures you to decide and send money immediately, or 3) many other people have had trouble.

If you want to report an incident or get advice on a situation, call the NCL's National Fraud Information Center at 1-800-876-7060. Reporters desiring more information can call Cleo Manuel or Kim Michalski at 1-202-835-3323.

Your check gets cashed, but nothing comes. You might call or write the vendor, and he'll tell you it's in the mail. And still nothing comes. Often times, you find out through newsgroups that several people were sold the exact same item at the exact same time.

The moral of the story is be careful: don't send money unless you are sure you can trust the vendor. Ask around through newsgroups to see if anyone else has had trouble with that vendor in the past. Check out the prices offered by competitors.

It never hurts to do your homework: Don't fall for the offer if 1) the item is being sold for much less than normal, 2) the vendor pressures you to decide and send money immediately, or 3) many other people have had trouble.

If you want to report an incident or get advice on a situation, call the NCL's National Fraud Information Center at 1-800-876-7060. Reporters desiring more information can call Cleo Manuel at 1-202-835-3323.

Crooks take advantage of that dream, making business opportunity scams the fourth most common one on the Internet. Promises of easy terms, support and high profits usually convince a consumer to purchase business opportunity. But after paying large fees, the consumer finds the promised support doesn't materialize, and the profits are nonexistent. More often than not, consumers are unable to even earn back their original investment.

Business opportunity scams can usually be identified by earnings projections that are unrealistic, a lack of required disclosure documents, a refusal or reluctance to release names of previous clients, and terms or offers that are out of the ordinary for that industry. Any one of those signs should be cause for concern.

To find out more about franchise and business opportunity scams, check out the FTC's brochure by clicking here. To report an incident, call the National Consumers Leagues National Fraud Information Center at 1-800-876-7060.

Reporters desiring more information can call Cleo Manuel or Kim Michalski at 1-202-835-3323 or e-mail them at nclncl@aol.com.

Number Five, Work-At-Home Scams. The work-at-home scam has been around for years. You can probably find an example in the classifieds of your home-town newspaper. On the Internet, crooks advertise in newsgroups or through mass e-mails offering low work, high paying jobs. For example, some crooks will sell graphics creation programs and claim consumers can make money by selling back completed graphics. Consumers that buy the programs soon find out the reality is quite different. Not only will the company not buy back the graphics, they won't give a refund either. The consumer has simply lost money. Another common work-at-home scam involves selling an "opportunity." A consumer sees a post offering listings of work-at-home jobs. After purchasing the list, the consumer finds out that most of the company names and addresses are bogus, or that the listed company doesn't actually offer work at home. When the consumer tries to get a refund they get a really nasty surprise instead. No refund without rejection letters from companies, and it's impossible to get a rejection letter from a fake company. These are just a few of the work-at-home scams out there. For more information on work-at-home scams, check out the FTC brochure by clicking here. If you want to report an incident, call the National Consumer League's National Fraud Information Center at 1-800-876-7060. Media can call Cleo Manuel at 202-835-3323 for further information.

To help consumers, the National Consumers League has produced "Making Sense of Your New Communications Choices," part of a new national education campaign launched today at a press briefing in Washington, DC.

"One of our main goals is to help educate consumers, so they can make more informed choices in the marketplace," said Linda F. Golodner, president of the League. "This brochure gives sound advice and answers common consumer questions about phone service."

The brochure includes sections on budgeting; telemarketers and "slamming"; communications services, such as cable, cellular and paging services; and resources for assistance.

"Consumers are being challenged to think about communication and entertainment in a whole new way," said Golodner.

Consumers can order the brochure by calling 800-355-9NCL (800-355-9625). The brochure was produced with a grant from the GTE Foundation.

"The vast changes that are currently taking place in the telecommunications marketplace may be confusing. NCL's education initiatives will give people the information they need to be able to sort through the options," said C.F. Bercher, President-Consumer Markets for GTE Telephone Operations, "GTE, as a company committed to helping consumers, is pleased to support NCL's work in this area."

Founded in 1899, the National Consumers League is a nonprofit membership organization representing consumers and workers. The League works to win and maintain health and safety protections and to promote fairness at the marketplace. For membership information and a complete list of publications write to: NCL 1701 K St. NW, Suite 1200, Washington, DC 20006.

NFIC computers and telephone hotline counselors are also picking up a rash of complaints about multi-level marketing schemes, some of which are nothing more than pyramid scams disguised as legitimate marketing opportunities.

Multi-level marketing is all the rage, now that tough new federal regulations discourage promoters from pursuing sweepstakes and other prize offers. Many of the large boiler rooms operating out of Houston, Los Angeles, and Las Vegas faced hard times after the FTC's Telemarketing Sales Rule went into effect in January and after the massive FBI crackdown on operations targeting senior citizens last fall.

Although many of the prize offer scams have simply picked up and moved north to Canada, other, U.S.-based promoters have simply changed their tune - by hawking "opportunities" instead of prizes.

Multi-level marketing sounds good. The way it works - in theory - is that you buy in to a sales deal and get others to buy in as well. The more people you sign on the more money you make - since you get a percentage of anything the people you sign up earn. Those you sign up will get a percentage of the earnings of those they sign up - and so on down the line.

NFIC suspects few, if any, down the line ever make any money. Hapless and feckless "opportunity seekers" who buy in never rake in a dime - and lose a lot of friends as well.

Internet-based pyramid, chain letter, and marketing schemes are likely to reach epidemic proportions in the next few months. They attract the same type of victim as the sweepstakes "winner". The crooks who promote these scams stand to make much more money per "hit", since they are able to sell the victim on the fact that the deal is an "investment". Sweepstakes and prize offers were restricted to requests for "income tax" payments and "shipping charges".

Many multi-level marketing opportunities are disguised as "chain letters". The U S Postal Inspection Service has an excellent consumer warning on its web site which you can access here. The USPIS labels these promotions as simply a "bad investment".

The National Fraud Information Center warns consumers that many multi-level marketing schemes and chain letter promotions advertised on the Internet provide few, if any, legitimate opportunities to "cash in".

• Any legitimate marketing investment should stress the product and its value, not the opportunities to cash in by coaxing others to join in.
• Chain letters are illegal if they use the U.S. Mails.
• If you are invited to attend a "seminar" to learn more about business or multi-level marketing opportunities, take no money, checks, or credit cards along with you. That will keep you from making an impulsive decision to invest.
• Sit down and make a realistic appraisal of what you stand to gain and what you stand to lose by making any business opportunity or multi-level marketing investment. If you have an accountant who does your income taxes, use him or her to evaluate the prospects of any financial opportunity. It's inexpensive and helpful in making the right decision.

Most important, keep in mind that specific opportunities to "cash in" and make big money are probably on the wane by the time you hear about them. Investment capital and venture capital seek ground floor opportunities and rarely, if ever, advertise their discoveries on the Internet. Your best opportunity to "cash in" is going to be through more pedestrian investment opportunities and well established businesses or franchises