Feds: Top e-tailers profit from billion-dollar Web scam | Digital Media – CNET News.
Only heard about this when catching up on a recent TWiT podcast. Apparently many online stores – including seemingly reputable names like Shutterfly, 1-800-Flowers, and Expedia/Hotels.com – have duped customers into fee-paying web loyalty programmes by encouraging them to enter their e-mail address just before they complete purchases in return for cash back or a coupon. Most consumers don’t realise they’ve been conned because it only deducts a small amount from their credit card each month. Some sites, like Classmates.com, have reportedly made more than $70 million from the scam.
So beware – don’t give sites any more information than you need to make a purchase, check your credit card statements carefully – and don’t give these companies your business:
