FTC stops million dollar scheme
The Federal Trade Commission has stopped a major international online scam that robbed millions of Americans. Single charges of under $10 were billed to innocent consumers. The criminals took information they obtained fraudulently and proceeded to open over 100 merchant accounts to process the charges to, says the FTC. The elaborate scheme even involved phony websites with numbers consumers could call. Most card holders didn’t even notice the charges because they were so small, reports ComputerWorld. Almost 94 percent of the victims failed to dispute the charge. “They know that most of the fraud detection systems won’t detect anything under $10 and they know that consumers won’t complain about a 20 cent fee,” said Gartner research firm analyst Avivah Litan told ComputerWorld. “What’s different here is the scale, and that they got away with it for so many years.” Consumers need to be diligent when shopping online. The Federal Bureau of Investigation says that consumers shouldn’t trust a site just because it says it’s secure and to never give out credit card information to any merchants that can’t be verified as legitimate.