Websites for social interaction are becoming more and more popular. However, some use questionable marketing techniques that you should be aware of.

Many adult-dating websites use clever but unscrupulous marketing techniques. They begin by offering newcomers “basic free memberships” with limited capabilities unless you upgrade’ to a higher level of membership that generally costs between $24.95 and $59.95 per month (less if you purchase multiple months). However, this free, basic membership comes with a catch. Unless you purchase the upgrade, you will usually be unable to communicate with people who show interest in you, send you a flirt’ or an e-mail message.

Enter the upgrade shills

Here’s where it really gets unscrupulous. Shortly after accepting that free, basic membership, you may get several hits’ from members expressing an interest in communicating with you. Unfortunately, you will be unable to reply to their messages until you ante-up an upgrade fee. Once you do, most or all of the people who have shown interest in you will vanish into the sunset never to be heard from again. No matter. The management of the website has your money, so they don’t care.

The upgrade shills may be anywhere hackneyed phrase, but it really applies to many adult dating websites. I wholeheartedly suggest that anyone considering enrolling in an adult site first go online and check for complaints. It is easily done by entering the name of the site plus complaints into your web browser. This will bring you to several sites that hold page after page of complaints about precisely this situation.

If the site you are considering is listed with numerous complaints, keep another hackneyed phrase in mind, that being “Where there’s smoke, there’s fire!” and steer clear. Upgrading will not only fail to bring you a desired connection, it will lighten your credit or debit card balance considerably.

Even on essentially honest sites, beware of scammers

Let’s face it folks, people who you would rate 10 out of 10 because they look like they just stepped out of a magazine centerfold can connect with just about anyone they wish to when walking down the street, in the supermarket or anywhere else. They certainly do not need an online dating website to make it happen. So here’s hackneyed phrases numbers 3 and 4: “If it seems too good to be true, it probably is” and “Caveat Emptor-Latin for Let the Buyer Beware’ “. Those beautiful people whose photos look like they are professionally-taken modeling shots are as phony as the day is long, probably have no similarity to the owner of the profile and are sometimes leads for illegitimate activities. The best advice is to scroll on past.

There are many legitimate sites

Not every adult website is out to scam you. But more are than aren’t. Sites whose pages are loaded with X-rated videos and provocative webcam shows that you can purchase are there primarily to sell this kind of material. If that’s what you seek, fine. Otherwise, be forewarned! And keep in mind that most dating/matching websites are classed as adult’ for a good reason. They are absolutely not for people under 18 years of age (21 in a few states).

During my investigations for this article, I discovered several legitimate sites. They, too, will charge you to upgrade, but at least you won’t be besieged by phony upgrade shills and exposed to never-ending X-rated video promotions. That doesn’t mean you can drop your guard completely. The scammers and fakers are still present although the legitimate sites quickly delete their profiles when they are suspected or discovered. Profiles of members labeled “pending review” are generally under suspicion by site management.

A few general tips:

Your early-on, interested respondents may not even be in this country, let alone near to your location. Using an IP trace program on the one or two that actually corresponded via their private e-mail addresses, I was able to trace them from a Yahoo e-mail site in Sunnyvale, California to Reston, Virginia, a well-known jumping off’ point for Internet communication with people offshore and particularly in Nigeria and Ghana. Why, I asked myself, would a person supposedly in Orange County, California be communicated with via Reston, Virginia, where the trace ended? Using some other more advanced trace programs with a few Internet tricks, I was able to trace one to Calcutta, India and another to Nigeria. Busted!

Simply stated, these early respondents’ were no more interested in me than my ex-wife. Their sole purpose was to encourage me to upgrade’ to a paid membership in the system and nothing more! They are “Upgrade Shills” who operate much like the “slot shills” in some casinos that are there strictly to encourage you to ante up your hard-earned money. Unethical? Certainly. Illegal? Perhaps, or at least it should be because this is out-and-out fraud no matter how you look at it.

Always look before you leap

This may be no two sites are exactly alike and there seems little doubt that some of them have the same ownership albeit under the surface. Here are a few good things to keep in mind if you are seriously considering this type of Internet social interaction:

(1)-Avoid sites filled with X-rated videos or provocative webcam offerings

(2)-Avoid sites that give you a FREE basic membership, hit you with a few immediate responses and won’t let you reply until you upgrade. The odds are the responses are from “upgrade shills.”

(3)-There is nothing wrong with a site encouraging you to upgrade in order to obtain the use of additional features. After all, they are in business to make money and have real expenses too. However, if they use phony come-ons from shills, avoid them like the plague. A legit site will give you a limited time period for FREE, or offer you a very-low cost trial period, both designed to give you a reasonable opportunity to determine if the site is for you.

(4)-Always check the Internet for complaints about any site you are considering. If you find a series of complaints, it’s better to be safe than sorry. Look elsewhere.

On the bottom line, if you are considering the use of an adult website for dating or meeting new friends, be aware of scams. And keep in mind that even on the mainly legit sites, scammers can slip through. So be careful and think before you spend your hard-earned money.

Websites for social interaction are becoming more and more popular. However, some use questionable marketing techniques that you should be aware of.

Many adult-dating websites use clever but unscrupulous marketing techniques. They begin by offering newcomers “basic free memberships” with limited capabilities unless you upgrade’ to a higher level of membership that generally costs between $24.95 and $59.95 per month (less if you purchase multiple months). However, this free, basic membership comes with a catch. Unless you purchase the upgrade, you will usually be unable to communicate with people who show interest in you, send you a flirt’ or an e-mail message.

The current recession has given rise to a large cadre of scammers who recognize tons of people in need and target them as ‘marks’. In this case, the scammers have set their sights on homeowners who are having problems making their monthly payments and facing foreclosure. From the scammers point of view, nobody makes a better mark than those who are desperate for a solution.

Enter Loan Modification Scammers

Fortunately, loan modification scammers are easy to recognize as long as you understand what you shouldn’t agree to, namely:

1. Never agree to pay them money up front

2. Never deal with a firm that isn’t legally qualified. This means that you

should be dealing with a licensed attorney

3. Never agree to doing business with a loan mod/restructuring company

until you have checked them out with the Better Business Bureau and

searched for complaints about them on the Internet.

4. This is SO IMPORTANT we’re going to say it again: Never pay money up

front. Never!!

What is Loan Modification?

Simply stated, mortgage loan modification is a legal agreement between a

borrower and the lender to change the terms and conditions of the existing loan so that it is more affordable. Not every lender will be agreeable to doing this for every borrower. The decision depends upon a number of factors which are usually different for each individual borrower.

Most homeowners who have gotten into the foreclosure situation have arrived there by (a)-having a sub-prime mortgage where the interest rate has suddenly increased and raised their monthly payments beyond their ability to pay or (b)-suffered sudden job loss or catastrophic illness that has had the same result. In either case, losing one’s home is a very serious situation and foreclosure will also destroy one’s credit rating for years to come. Knowing this makes you a prime target for scammers. Your best defense is to understand your situation and know your available options.

What do Lenders Want to Grant a Modification?

Early in 2009, President Obama introduced the Homeowner Affordability and Stability Plan (HASP) as part of his economic recovery package. This plan, to which $75 Billion has been allocated, is designed to modify and restructure existing distressed mortgages so that struggling homeowners will be able to stay in their homes. The plan is also designed to stop the downward spiral in property values by preventing homes from going into foreclosure.

How it works- The HASP plan is intended to focus on mortgage payments and not just property values. It’s goal is to allow homeowners to stay in their homes as long as they can make the new payments, even if property values continue to go down. Under this plan, lenders (loan servicers) must:

1. Reduce monthly payments to less than 38% of a borrower’s gross monthly

income. The US Government then pays the rest of the balance due.

2. The loan servicer can then lower the payments by reducing the interest

rate to as low as 2%; extend the loan period up to as much as 40 years;

and/or forebear the loan principal at no interest. The lender who does so

will be paid $1,000 for each modification granted and will also receive an

additional $1,000/year for up to 3 years, provided that the mortgage

payments are made on time.

3. The borrower (homeowner) can also receive $1,000 off the principal

balance of the loan for up to 5 years for making their monthly payments

on time.

Who Qualifies- The HASP loan modification program is designed expressly for responsible homeowners who have been negatively affected by the recession. To be eligible, the homeowner (borrower) must:

A. Be an owner-occupied, primary residence only (not rented out by an

Investor-owner)

B. Have a mortgage balance no more than $729,750

C. Provide proof that a financial hardship has occurred such as a job

loss (loss of income); substantial mortgage rate increase or

catastrophic medical expenses, any of which were responsible for

placing them at risk of default. An affidavit to this effect must be

provided with the application.

The application for loan modification is really all about the economic interest of the lender. The lender will generally run a Net Present Value test to find

out if there will be more cash flow if the loan is modified. In this case, the US government will be covering any shortfall of cash.

It Takes a Professional

Filing a loan modification application is not generally a do-it-yourself project unless you are extraordinarily gifted in loans and finance. And while there are numerous legitimate companies that will do this for you, keep in mind the ‘never dos’ stipulated above and check them out thoroughly before you sign or agree to anything. Probably the best bet is to hire a licensed attorney in your area who can do this properly for you.

Most of the mortgages that require modification were written by Bank of America; Washington Mutual (now Chase); CitiMortgage; Countrywide; Household; JP Morgan; IndyMac or Wells Fargo and are based on Fannie Mae or Freddie Mac guidelines. If you have a loan from one of these lenders and the future looks bleak, it’s a good idea to secure professional help in filing for a modification as early in the process as possible. Once you are actually in the foreclosure process, it is very unlikely that the lender will grant a loan modification.

One other point. Truly qualified people who handle loan modifications for distressed homeowners are not only qualified legally, but usually have good contacts within the lending institutions that makes them successful. Good luck!

The Internet serves as an excellent tool for investors, allowing them to easily and inexpensively research investment opportunities. But the Internet is also an excellent tool for fraudsters. That’s why you should always think twice before you invest your money in any opportunity you learn about through the Internet.

This alert tells you how to spot different types of Internet fraud, what the SEC is doing to fight Internet investment scams, and how to use the Internet to invest wisely.

Navigating the Frontier: Where the Frauds Are

The Internet allows individuals or companies to communicate with a large audience without spending a lot of time, effort, or money. Anyone can reach tens of thousands of people by building an Internet web site, posting a message on an online bulletin board, entering a discussion in a live “chat” room, or sending mass e-mails. It’s easy for fraudsters to make their messages look real and credible. But it’s nearly impossible for investors to tell the difference between fact and fiction.

Online Investment Newsletters

Hundreds of online investment newsletters have appeared on the Internet in recent years. Many offer investors seemingly unbiased information free of charge about featured companies or recommending “stock picks of the month.” While legitimate online newsletters can help investors gather valuable information, some online newsletters are tools for fraud.

Some companies pay the people who write online newsletters cash or securities to “tout” or recommend their stocks. While this isn’t illegal, the federal securities laws require the newsletters to disclose who paid them, the amount, and the type of payment. But many fraudsters fail to do so. Instead, they’ll lie about the payments they received, their independence, their so-called research, and their track records. Their newsletters masquerade as sources of unbiased information, when in fact they stand to profit handsomely if they convince investors to buy or sell particular stocks.

Some online newsletters falsely claim to independently research the stocks they profile. Others spread false information or promote worthless stocks. The most notorious sometimes “scalp” the stocks they hype, driving up the price of the stock with their baseless recommendations and then selling their own holdings at high prices and high profits. To learn how to separate the good from the bad, read our tips for checking out newsletters.

Bulletin Boards

Online bulletin boards – whether newsgroups, usenet, or web-based bulletin boards – have become an increasingly popular forum for investors to share information. Bulletin boards typically feature “threads” made up of numerous messages on various investment opportunities.

While some messages may be true, many turn out to be bogus – or even scams. Fraudsters often pump up a company or pretend to reveal “inside” information about upcoming announcements, new products, or lucrative contracts.

Also, you never know for certain who you’re dealing with – or whether they’re credible – because many bulletin boards allow users to hide their identity behind multiple aliases. People claiming to be unbiased observers who’ve carefully researched the company may actually be company insiders, large shareholders, or paid promoters. A single person can easily create the illusion of widespread interest in a small, thinly-traded stock by posting a series of messages under various aliases.

E-mail Spams

Because “spam” – junk e-mail – is so cheap and easy to create, fraudsters increasingly use it to find investors for bogus investment schemes or to spread false information about a company. Spam allows the unscrupulous to target many more potential investors than cold calling or mass mailing. Using a bulk e-mail program, spammers can send personalized messages to thousands and even millions of Internet users at a time.

How to Use the Internet to Invest Wisely

If you want to invest wisely and steer clear of frauds, you must get the facts. Never, ever, make an investment based solely on what you read in an online newsletter or bulletin board posting, especially if the investment involves a small, thinly-traded company that isn’t well known. And don’t even think about investing on your own in small companies that don’t file regular reports with the SEC, unless you are willing to investigate each company thoroughly and to check the truth of every statement about the company. For instance, you’ll need to:

• get financial statements from the company and be able to analyze them;
• verify the claims about new product developments or lucrative contracts;
• call every supplier or customer of the company and ask if they really do business with the company; and
• check out the people running the company and find out if they’ve ever made money for investors before.

And it doesn’t stop there. For a more detailed list of questions you’ll need to ask – and have answered – read Ask Questions. And always watch out for tell-tale signs of fraud.

Here’s how you can use the internet to help you invest wisely:

Start With the SEC’s EDGAR Database

The federal securities laws require many public companies to register with the SEC and file annual reports containing audited financial statements. For example, the following companies must file reports with the SEC:

• All U.S. companies with more than 500 investors and $10 million in net assets; and
• All companies that list their securities on The Nasdaq Stock Market or a major national stock exchange such as the New York Stock Exchange.

Anyone can access and download these reports from the SEC’s EDGAR database for free. Before you invest in a company, check to see whether it’s registered with the SEC and read its reports.

But some companies don’t have to register their securities or file reports on EDGAR. For example, companies raising less than $5 million in a 12-month period may be exempt from registering the transaction under a rule known as “Regulation A.” Instead, these companies must file a hard copy of the “offering circular” with the SEC containing financial statements and other information. Also, smaller companies raising less than one million dollars don’t have to register with the SEC, but they must file a “Form D.” Form D is a brief notice which includes the names and addresses of owners and stock promoters, but little other information. If you can’t find a company on EDGAR, call the SEC at (202) 551-8090 to find out if the company filed an offering circular under Regulation A or a Form D. And be sure to request a copy.

The difference between investing in companies that register with the SEC and those that don’t is like the difference between driving on a clear sunny day and driving at night without your headlights. You’re asking for serious losses if you invest in small, thinly-traded companies that aren’t widely known just by following the signs you read on Internet bulletin boards or online newsletters.

Contact Your State Securities Regulators

Don’t stop with the SEC. You should always check with your state securities regulator, which you can find on the website of the North American Securities Administrators Association, to see if they have more information about the company and the people behind it. They can check the Central Registration Depository (CRD) and tell you whether the broker touting the stock or the broker’s firm has a disciplinary history. They can also tell you whether they’ve cleared the offering for sale in your state.

Check with the Financial Industry Regulatory Authority (FINRA)

To check the disciplinary history of the broker or firm that’s touting the stock, use FINRA’s BrokerCheck website, or call FINRA’s BrokerCheck Program hotline at (800) 289-9999.

Online Investment Fraud:
New Medium, Same Old Scam

The types of investment fraud seen online mirror the frauds perpetrated over the phone or through the mail. Remember that fraudsters can use a variety of Internet tools to spread false information, including bulletin boards, online newsletters, spam, or chat (including Internet Relay Chat or Web Page Chat). They can also build a glitzy, sophisticated web page. All of these tools cost very little money and can be found at the fingertips of fraudsters.

Consider all offers with skepticism. Investment frauds usually fit one of the following categories:

The “Pump And Dump” Scam

It’s common to see messages posted online that urge readers to buy a stock quickly or tell you to sell before the price goes down. Often the writers will claim to have “inside” information about an impending development or to use an “infallible” combination of economic and stock market data to pick stocks. In reality, they may be insiders or paid promoters who stand to gain by selling their shares after the stock price is pumped up by gullible investors. Once these fraudsters sell their shares and stop hyping the stock, the price typically falls and investors lose their money. Fraudsters frequently use this ploy with small, thinly-traded companies because it’s easier to manipulate a stock when there’s little or no information available about the company.

The Pyramid

Be wary of messages that read: “How To Make Big Money From Your Home Computer!!!” One online promoter claimed that investors could “turn $5 into $60,000 in just three to six weeks.” In reality, this program was nothing more than an electronic version of the classic “pyramid” scheme in which participants attempt to make money solely by recruiting new participants into the program.

The “Risk-Free” Fraud

“Exciting, Low-Risk Investment Opportunities” to participate in exotic-sounding investments – such as wireless cable projects, prime bank securities, and eel farms – have been offered through the Internet. But no investment is risk-free. And sometimes the investment products touted do not even exist – they’re merely scams. Be wary of opportunities that promise spectacular profits or “guaranteed” returns. If the deal sounds too good to be true, then it probably is.

Off-shore Frauds

At one time, off-shore schemes targeting U.S. investors cost a great deal of money and were difficult to carry out. Conflicting time zones, differing currencies, and the high costs of international telephone calls and overnight mailings made it difficult for fraudsters to prey on U.S. residents. But the Internet has removed those obstacles. Be extra careful when considering any investment opportunity that comes from another country, because it’s difficult for U.S. law enforcement agencies to investigate and prosecute foreign frauds.

The SEC Is Tracking Fraud

The SEC actively investigates allegations of Internet investment fraud and, in many cases, has taken quick action to stop scams. We’ve also coordinated with federal and state criminal authorities to put Internet fraudsters in jail. Here’s a sampling of recent cases in which the SEC took action to fight Internet fraud:

For More Info Go To: http://www.sec.gov/investor/pubs/cyberfraud.htm

Investigative Report: Dating Scammers-How They Work

And How You Can Avoid Them. Don’t Get Ripped Off by a Phony!

Dating scammers know exactly how to capitalize on human weakness, where to find their “marks” and how to make your fantasies into their paydays. Here’s how:

Regardless of the dating or matching website you choose, you will undoubtedly run into dating scammers. They are present even on the most legitimate websites that make every-possible effort to screen and eliminate them. Their only goal is to find new “marks,” people who are anxious to establish a relationship with a member of the opposite sex (or their own). Once they target you, they will be patient, careful and appear to be looking for precisely what you are. Don’t be fooled. The only thing they are seeking is your money and they have a seemingly-unending repertoire of ways to get it.

How scammers work

Dating scammers primarily target older men between 40 and 65 years of age. Your profile on the website tells them everything they need to know to target you, namely that you are anxious for a relationship, that you prefer younger women, that you are into fantasies and that you are probably financially stable.

In a great many cases, the scammers post a profile that states that they are in the same area you are. They will also post photos of some extremely-attractive woman that isn’t them at all. However, you can’t know that, so they will use photos that appeal to men’s fantasies. More often than not, these photos are copied from the Internet without the owner’s knowledge. On highly-explicit websites, they are often copied from X-rated videos or promotional materials. That’s all it takes for a scammer to set the stage for the upcoming con if you bite.

The next step in the scammer’s master plan is to get you off the dating website and onto an Instant Messenger. More often than not, they will be using a Yahoo IM so you may get talked into downloading that system. Once you’re there, it begins. Expect a continuing series of IM chats during which you will be amazed at just how much you and the scammer have in common. How does she know? Simple! The more detailed your dating website profile was, the more she knows. It doesn’t take a 180 IQ to figure out the rest.

As things progress, you will receive much evidence that suggests how much she cares for you. She will comment about how honest and open she is, extol her belief in God and being a good person, etc. She may even tell you she is in love with you and how desperately she wants to be with you.

Now for the ‘hook’

Once it’s clear that you’ve taken the bait, it’s time for her to set the hook. There may be a sudden medical emergency in her family or perhaps she is overdue on her Internet ISP bill and is upset because she may lose contact with you. She knows that’s the last thing you want and that it’s likely you will offer to help. If you do, she will want the money only by Western Union, not a check or credit card that you can place a stop payment on. And if you send it, she will be eternally grateful. Once you’ve gone this far, you have established yourself as a patsy and are totally hooked. She has your money and you don’t really know who you are actually chatting with or what they look like. I may even be some man.

The next step in your ongoing Internet love affair will be getting her over here to be with you. If you offer to pay her one-way air fare, she will make it quite plain that she’d prefer you to Western Union the cash so she can buy her own ticket. There are numerous excuses you can be given for this. The reality is that she wants to be able to have your cash, which if she is overseas, can be as much as several thousand dollars. If you are foolish enough to go for this scam, I guarantee that you will never see your money again and you will most assuredly never see her!

This may seem like a dramatic portrayal that will never happen to you. Wrong! When I began the research for this article, I purposely set myself up as a typical ‘patsy’ , invested $150 in help for her Internet bill but absolutely refused to send anything but a prepaid, non-refundable ticket for the air fare. As I anticipated, I was accused of mistrust and never heard from the lady again. No surprise there at all!

How to avoid being scammed

The first rule you should follow if you are hell-bent on using a dating/matching website is to limit your interests to people within 50 or 60 miles of your home. In this way, if a real connection is in the offing, it will happen. Make that a MUST statement in your profile under “what you are looking for.”

Second, Never and I mean never, get involved with someone overseas, especially in Ghana, Nigeria or anywhere in Africa. These are almost always scams, particularly if their dating website profile claimed they were close to you and in this country. This is just the first in a series of lies you will be subjected to. Want proof? Merely type “dating scammers /Ghana” into your browser and review the many websites that list scammers and the stories from people they have scammed. That will convince anyone.

Third, while it isn’t a guarantee, you’ll be far better off if you can have a real-time webcam chat with each other. This is hard to fake. And if the person you see doesn’t look like the person’s website profile photo, run like a thief.

Fourth, never send someone money or give them your credit card info, bank account information or any other financial data. Ditto for passwords and user names.

Finally, don’t be a chump. The odds that some outrageously-beautiful young woman is going to develop a relationship interest with a man 20-40 years her senior are about equal to or greater than winning the Mega Millions Lottery. Impossible? No! Unlikely? Absolutely. The odds show that these are either scammers or hookers and you don’t need either one.

And don’t allow yourself to be in love with the idea of being in ‘love’. This requires real people who know each other and takes time to develop. Anything less is most likely just a pipe dream for a guy who wants to recapture his youth.