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The Federal Trade Commission, Federal Bureau of Investigation, U.S. Postal Inspection Service, Securities and Exchange Commission, and the Commodity Futures Trading Commission, have joined 10 state attorneys general and 11other state and local law enforcement agencies to target cyberscams plaguing the Internet. Today they announced 19 civil and criminal law enforcement actions against scammers who have bilked tens of thousands of consumers out of millions of dollars.

"Scams on the Internet spread very quickly," said J. Howard Beales, III, Director of the FTC's Bureau of Consumer Protection. "That's why the FTC and our partners are moving aggressively to shut these schemes down."

The FTC asked a U.S. district court judge to shut down an operation that used spam and Internet Web sites to advertise an envelope stuffing work-at-home "opportunity." According to the FTC, in exchange for $40, the defendants promised to provide consumers with sales letters and pre-stamped, pre-addressed envelopes and consumers would earn two dollars for every envelope they stuffed. Consumers who sent their money didn't receive envelopes. If they received anything - and many didn't - they got materials urging them to solicit self-addressed envelopes from third parties and forward them to the defendants. The FTC told the court that the "Stuffing for Cash" defendants likely cheated tens of thousands of consumers out of more than $2 million in the last year. At the request of the FTC, a U.S. district court judge prohibited the defendants from engaging in further deceptive practices and froze their assets, pending trial.

In another FTC case, an operator used the Internet to advertise his "discount" Web hosting services - such as domain name registry, Web page design, and technical support - for monthly service fees of $10 to $15. Consumers provided credit card numbers so they could be billed. The FTC alleged that the defendant, Brian Kruchten, doing business as Page Creators, crammed additional unauthorized charges onto consumers' credit cards for supposed "excess bandwidth" use. At the FTC's request, a district court froze the defendant's assets and appointed a receiver, pending trial.
The defendant and the receiver later agreed to shut down the defendant's Web hosting business.

 

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