As part of a continuing effort to identify the latest cyber crime trends and warn the public, the FBI today released the following information:

Within the last several months, the FBI has seen a significant increase in fraud involving the exploitation of valid online banking credentials belonging to small and medium businesses, municipal governments, and school districts. In a typical scenario, the targeted entity receives a “spear phishing” e-mail which either contains an infected attachment, or directs the recipient to an infected website. Once the recipient opens the attachment or visits the website, malware is installed on their computer. The malware contains a key logger which will harvest each recipient’s business or corporate bank account login information. Shortly thereafter, the perpetrator either creates another user account with the stolen login information or directly initiates funds transfers by masquerading as the legitimate user. These transfers have occurred as both traditional wire transfers and as ACH transfers.

Further reporting has shown that the transfers are directed to the bank accounts of willing or unwitting individuals within the United States. Most of these individuals have been recruited via work-at-home advertisements, or have been contacted after placing resumes on well-known job search websites. These persons are often hired to “process payments,” or “transfer funds.” They are told they will receive wire transfers into their bank accounts. Shortly after funds are received, they are directed to immediately forward most of the money overseas via wire transfer services such as Western Union and Moneygram.

Customers who use online banking services are advised to contact their financial institution to ensure they are employing all the appropriate security and fraud prevention services their institution offers.

The United States Computer Emergency Readiness Team (US-CERT) has made information on banking securely online available at: http://www.us-cert.gov/reading_room/Banking_Securely_Online07102006.pdf

Protecting your computer against malicious software is an ongoing activity and, at minimum, all computer systems need to be regularly patched, have up-to-date anti-virus software, and have a personal firewall installed. Further information is available at: http://www.us-cert.gov/nav/nt01/

If you have experienced unauthorized funds transfers from your bank accounts, or if you have been recruited via a work-at-home opportunity to receive transfers and forward money overseas, please notify the Internet Crime Complaint Center by filing a complaint at: http://www.ic3.gov.

For a detailed analysis of this scam please visit http://www.ic3.gov/media/2009/091103-1.aspx

But who wants to wait for their treats? So let's get to that right off the bat.

The folks at IveTriedThat.com – an excellent website about working at home have decided to make their eBook "The Complete Guide to Telecommuting" available to you for free.

Click here to learn more about their free eBook and grab your copy.

Oh, and expect to learn a few tricks from their eBook as well, such as how to:

• Properly prepare to work at home
• Revamp your cover letters and resumes to stand out to above the crowd
• Create and display a portfolio
• Speak to employers on a professional level
• Learn to recognize a fake online job posting
• Quickly and efficiently scan through job ads for legitimate postings
• Convince potential and current employers to let you work from home
• Manage and grow a telecommuting business
• And yes, show you how and where to find legitimate work at home jobs.

Click here to learn more about their free eBook and grab your copy

"a) an internet marketing program
b) the FTC new rule on testimonials, and
c) a particular State business opportunity rule"

The first time I heard Michael Webster claiming that some Internet Marketing training programs were violating State business opportunity rules I thought that he clearly didn't understand how internet marketing training programs worked. After all, they don't supply the buyer of the training with a product or service to resell, right? So they aren't a business opportunity right?

WRONG!

I haven't reviewed all of the State business opportunity laws and I'm not an attorney, but I randomly took a look at what the state of Washington considers a business opportunity and as far as I can tell their definition doesn't require that the purchaser be provided with products or services to resell.

Here's how the State of Washington defines what a "business opportunity" is (IMPORTANT – pay attention to the "OR" logic after the initial "AND"):

"    (1) "Business opportunity" means the sale or lease of any product, equipment, supply, or service which is sold or leased to enable the purchaser to start a business; and:

     (a) The seller represents that the seller will provide locations or assist the purchaser in finding locations, on premises neither owned nor leased by the purchaser or seller, for the use or operation of vending machines, display racks, cases, or similar devices or coin-operated amusement machines or similar devices; or

     (b) The seller represents that the seller will purchase any product made, produced, fabricated, assembled, modified, grown, or bred by the purchaser using, in whole or part, any product, equipment, supply, or service sold or leased to the purchaser by the seller; or

     (c) The seller guarantees that the purchaser will earn an income greater than or equal to the price paid for the business opportunity; or

     (d) The seller represents that if the purchaser pays a fee exceeding three hundred dollars directly or indirectly for the purpose of the seller providing a sales or marketing program, the seller will provide such a program which will enable the purchaser to derive income from the business opportunity which exceeds the price paid for the business opportunity.

     (2) "Person" includes an individual, corporation, partnership, joint venture, or any business entity.

     (3) "Seller" means a person who sells or leases a business opportunity.

     (4) "Purchaser" means a person who buys or leases a business opportunity.

     (5) "Director" means the director of financial institutions.

     (6) "Guarantee" means an undertaking by the seller to refund all or a portion of the purchase price paid for the business opportunity."

Of course many of the internet marketing training programs would meet this definition if they fell  under the state of Washington's jurisdiction.

What's bizarre about all of  this that I've never seen any of the popular internet marketing attorneys bring up these issues, but as I've learned over the past year just because you are engaged in "internet marketing" doesn't mean an "internet marketing attorney" is going to cover all of your legal bases.

For example, a Media and Communications attorney is likely to offer a deeper understanding of the legal issues surrounding online publishing and an attorney specializing in franchise and distributorship law (Michael Webster's speciality) is more likely to offer a deeper understanding of the legal issues in those areas.

Related:

• BlogMasterMind, Testimonials, and Seller Assisted Marketing Plans
• State of Washington's Definition of a Business Opportunity
• State Offices Administering Business Opportunity Disclosure Laws

What's the story behind the story of the subject of this blog post? The real story is that all news sources should be "under scrutiny" which is why a newer service called Newsy.com apparently wants people to make the scary leap of actually analyzing multiple sources and thinking for themselves.

For example, here's a recent story they did called "White House Stimulus Numbers Under Scrutiny":

Click here to visit Newsy.com

10/29/2009 Department of Justice Press Release via the FBI website:

SAN JOSE, CA—Khalid Shaikh, a former CEO of YouSendIt Inc., was indicted by a federal grand jury yesterday with four counts of mail fraud, United States Attorney Joseph P. Russoniello announced.

The indictment states that between December 2008 and June 2009 Shaikh used the ApacheBench software program to launch four denial of service (DOS) attacks against YouSendIt’s servers. Each DOS attack temporarily rendered the servers incapable of handling legitimate network traffic and deprived YouSendIt’s customers use of the company’s services.

YouSendIt is a company based in Campbell, Calif., that is engaged in the business of digital content delivery through the Internet. YouSendIt enables users to send, receive and track large files of digital data. YouSendIt’s Web servers are located in San Jose. These servers are also used to facilitate interstate and foreign commerce and communication.

According to the indictment, when the company was established in 2004, Shaikh was one of YouSendIt’s founders. He served as the company’s chief executive officer until August 2005. Thereafter, Shaikh served as the company’s chief technology officer until he departed from YouSendIt in November 2006.

The maximum statutory penalty for each count of mail fraud in violation 18 U.S.C. §§ 1030(a)(5)(A) & (c)(4)(A) is five years imprisonment, three years of supervised release and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Hanley Chew is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Legal Assistant Lauri Gomez, and Law Clerks Traci Lee and Lily Robinton. The charges are the result of a referral to and an investigation by the Federal Bureau of Investigation.

Please note: An indictment contains only allegations against an individual and, as with all defendants, Shaikh must be presumed innocent unless and until proven guilty.

PHILADELPHIA—Neal D. Saferstein, 36, of Mount Laurel, NJ, pleaded guilty today to four counts of an indictment stemming from a multi-million dollar telemarketing scam that defrauded as many as 400,000 small businesses out of as much as $75 million, announced U.S. Attorney Michael L. Levy. Saferstein was the President and Chief Executive Officer of  GoInternet.net, Inc. (“GoInternet”), which did business at 20 N. Third Street, and 6 Strawberry Street, in Philadelphia. GoInternet allegedly derived more than $75 million in gross revenues from a fraudulent telemarketing scheme that lasted from 2001 to 2004. Co-defendant Tyrone L. Barr, 35, of Philadelphia, was Vice President of Customer Service and Regulatory Affairs. Co-defendant Billy D. Light, 41, of Voorhees, NJ, was Chief Information Officer. Saferstein pleaded guilty today to one count of wire fraud, one count of mail fraud, and two counts of filing false tax returns. Sentencing is scheduled for February 2010.

According to the indictment, the entire GoInternet business model was designed to defraud customers and potential customers into making monthly $29.00 payments for Internet-related services without their knowledge or authorization. GoInternet’s telemarketers duped customers into receiving a welcome packet without disclosing that the mailing would trigger monthly bills unless the customer called to cancel. The packets were then designed to look like bulk business mail to prompt it to be disregarded or thrown away. GoInternet engaged in “cramming.” It would place monthly charges on its customers’ local telephone bills, without authorization, which customers routinely paid without noticing. By approximately 2003, GoInternet employed over 1,000 telemarketers and was signing on approximately 7,500 new customers every week. By the end of 2003, GoInternet’s customer base included more than 350,000 businesses.

Saferstein prevented customers from receiving notices disclosing the cost of services, and delayed and prevented refunds from going to customers that had been defrauded and were promised refunds. Barr created fake sales-verification tapes which were purported to contain the telemarketer’s call to the customer and the customer’s consent. Barr pleaded guilty to wire fraud and is awaiting sentencing.

In 2003, the Federal Trade Commission brought a civil proceeding regarding GoInternet’s practice of billing consumers for services without their authorization, which resulted in a $58 million judgment being imposed against Saferstein and GoInternet. Light admitted that Saferstein directed him to testify falsely before the federal district court in Philadelphia during the FTC proceedings. Light pleaded guilty to conspiracy to commit perjury and is awaiting sentencing.

Saferstein also used GoInternet corporate funds as if they were in his personal bank account, paying for significant personal expenses. He also failed to report income from the years 2000 to 2003 allegedly exceeding $1.7 million. In addition, the indictment charges defendant Saferstein with failing to pay over to the Internal Revenue Service more than $2.8 million in payroll taxes while he ran GoInternet.

Saferstein faces a maximum penalty of 46 years' imprisonment with a maximum fine of  $1 million.

Barr faces a maximum penalty of 20 years' imprisonment with a maximum fine of $250,000.

Light faces a maximum penalty five years' imprisonment with a maximum fine of $250,000.

The case was investigated by the Federal Bureau of Investigation, the Federal Trade Commission, the Federal Bureau of Investigation, the Internal Revenue Service and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorneys Jennifer Arbittier Williams and Jason P. Bologna, and by FTC Special Assistant United States Attorney Larissa L. Bungo.

WASHINGTON, D.C. – Small businesses will play an important role in the nation’s economic future. The Office of Advocacy’s Small Business Profile for the United States, released today, provides details about small business employment, business starts and closings, bank lending in 2008, the demographics of business ownership, and firm and employment change by major industry and firm size.“The United States continues to depend on the health and ingenuity of its small business sector for the nation’s economic growth,” said Susan Walthall, Acting Chief Counsel for Advocacy. “In today’s economic climate, it is especially important for policymakers to keep small business concerns in mind as they formulate policy.”

In 2008, the United States saw an increase of 0.7 percent in GDP and a private sector employment decline of 0.7 percent. The U.S. profile also shows that:

Ø Small employers in the United States numbered 6 million in 2006 (latest data). There were also 20.8 million nonemployers, which increased to 21.7 million by 2007.

Ø Small businesses added 2.5 million net new jobs in 2005-2006. Overall, they employed 50.2 percent of the nation’s nonfarm private workforce in 2006.

Ø Businesses owned by women, and by Asian Americans, African Americans, Hispanic Americans, and Hawaiians and Pacific Islandeers all increased significantly over the most recent period for which Census data are available.

As additional small business data become available over the coming months, they will be incorporated in a new edition of the state profiles, to be issued in early 2010.

For more information and a complete copy of the state and territory small business profiles, visit the Office of Advocacy website at www.sba.gov/advo.

 

###

 

 

 

The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visitwww.sba.gov/advo, or call (202) 205-6533.

Craig Davidson - A.K.A. as IStockPhoto 7068613

Recently I was asked to take a look at a product called Certified Cash Club – a product allegedly created by Craig Davidson (also known as IStockPhoto photo 7068613).

Certified Cash Club makes the bizarre, yet seemingly excited proclamation that it has been seen on Twitter, YouTube, Digg, StumbleUpon, and Squidoo…all of which are sites just about anyone could load information up to. In other word, making a claim like that at the top of a sales page is tantamount to saying either "I have no idea what I'm talking about" or "I hope you are too stupid to realize that none of this means anything at all".

Of course CertifiedCashClub also seems very excited about "being seen" on FaceBook, AOL, MSN, and Yahoo. As usual "HOW" they were seen isn't explained. Did they possibly BUY ADVERTISING on those sites to "Be Seen"?

Of interest is the fact that they didn't list "Google" in the "As Seen On" logo at the top. I mean, I just searched on Google and I "saw" CertifiedCashClub.com "on Google"…I also "saw" a picture of an Astronaut "on Google":

I "see" Certified Cash Club "on Google"...I "see" a picture of an astronaut "on Google"....

Thomas Bennett - a.k.a. iStockPhoto 4253221 loves all things certified

Thomas Bennett has ventured outside his comfort zone as a stock photo on the stock photo site iStockPhoto and worked his way up as a collector of all things certified.

Here he sits with his certified family in front of his certified home posing for a certified photographer. The youngest one is technically not certified yet, but she does have a certified binky (pacifier).

Michael Thompson - a.k.a. iStockPhoto 7256206 giving his "I got me some certified cash" look

Michael Thompson, also a regular of stock photo site iStockPhoto recently revealed that his glasses are fake and that he maintains his dazzling white pearly teeth by eating certified organic fruits and vegetables.

Oddly, right above the two testimonials that have images that can be found on iStockPhoto is the statement:

"Now I do know that every other formula, system, method, etc. out there only tells you how to generate money using only one not too useful tactic. WELL, YOU HAVE BEEN LIED TO AND RIPPED OFF."

What is the Certified Cash Club refund rate?

Also, another fact that seems to be in dispute is their refund rate. For example, according to the image below, Certified Cash Club claims that their refund rate is 4%, but CBEngine.com claims the refund rate on Certified Cash Club is 33.21%.

So, let's review what we have so far:

We have a photo of Craig Davidson, the alleged founder of CertifiedCashClub sitting on the stock photo site iStockPhoto.

We have a photo of Thomas Bennett and his family – the first person giving a testimonial for CertifiedCashClub.com - on the stock photo site iStockPhoto.

We have a photo of Michael Thompson – the second person giving a testimonial for CertifiedCashClub.com – on the stock photo site iStockPhoto.

We have CertifiedCashClub claiming that their refund rate is 4% and CBEngine.com claiming that the refund rate on Certified Cash Club is 33.21%.

And we have a picture of an astronaut on the moon to demonstrate that the words "as seen on" can't be properly interpreted without proper context.

What should one believe about Certified Cash Club's claim of their average member's earnings?

Certified Cash Club's Income Claim

I noticed that Certified Cash Club's optin form includes the statement "MEMBERS EARNING AN AVERAGE OF $253.91 EVERY SINGLE DAY". If I am interpreting that claim correctly it would mean that they are claiming that the average member earns $92,677.15 per year.

Should you believe this claim? That's up to you. I am merely presenting my observations of various elements of the sales page that cause me some concern. They should NOT be construed as absolute proof of anything, but merely indicators that you may want to include in your decision making process.

What would I do personally if I were considering a product like Certified Cash Club? I'd pass on the product. There are simply too many indicators that cause concern for me.

I'm in the process of getting a F.A.Q. section installed at WorkAtHomeTruth which will also allow you to submit your questions.

I've decided to do this in place of the forum for now as it seemed like the forum was mostly being used for that purpose and I'm MUCH more likely to answer on the blog than in the forum.

You can post your questions here for now until I get the F.A.Q. section set up.

Thanks.

Note: This is page 2 of questions submitted. You can see previous questions and answers on page 1 here.

Agency's First-Ever Web Site Devoted Exclusively to Investor Education

Washington, D.C., Oct. 22, 2009 — The Securities and Exchange Commission today launched its first-ever Web site devoted exclusively to investor education, providing investors with in-depth information and "top tips" on how to invest wisely, plan for the future, and avoid being scammed.

By visiting www.investor.gov, investors can access information in a user-friendly format that is specifically tailored to their needs. The site includes sections specifically for those just getting started investing, for those saving for a child's education, and for those planning for retirement. It also has a detailed "Seniors Care Package" section for senior citizens and caretakers.

In a welcome video on the new site, SEC Chairman Mary Schapiro says, "Investing information is available from thousands of online resources — some good, some not so good. Through Investor.gov, we are adding our own online voice to provide investors with unbiased and factual investing information."

Chairman Schapiro adds, "You'll find resources that can help you analyze your current holdings or even check the background of a registered financial professional."

Investor.gov also offers a section exclusively in Spanish, targeting the millions of Spanish-speaking investors in the United States. The "En Español" portion presents information about what to do if an investor feels that he or she has been a fraud victim, as well as a Spanish-language podcast explaining the history and functions of the SEC.

The site will be further enhanced with additional investor education resources in the coming weeks and months.

"Investor.gov will help you if you are invested in the market, are considering investing, or care for a relative who has retirement savings," said Lori Schock, Director of the SEC's Office of Investor Education and Advocacy. "Investor.gov provides an extensive collection of investor education materials, tools, calculators, checklists, as well as valuable investor alerts."

* * *

Investor.gov is the latest in a series of social media initiatives undertaken by the SEC. On the home page at www.sec.gov, visitors can sign up to receive information and instant e-mail alerts on more than 80 topics of interest to investors as well as other market participants. The agency also reaches investors online through other social media channels such as Twitter and YouTube:

• Investor Information: www.twitter.com/SEC_Investor_Ed
• News Releases and Alerts: www.twitter.com/SEC_News
• Enforcement Actions: www.twitter.com/SEC_Actions
• Careers at the SEC: www.twitter.com/SEC_Jobs
• You Tube channel: www.YouTube.com/SEC_Views