- If possible, always pay by credit card rather than by check or money order.

- Be skeptical

- NEVER purchase from a bulk unsolicited email you receive

- Be careful while shopping at online-auction sites

 And we would add to this list:

- View your credit-report often and quickly report unauthorized activity

- Big promises of wealth are often followed by bold requests for personal information.  Be careful online

- If it seems to good to be true, it probably is

In most cases, the ads are for quality businesses.  For example, for a recently reported phishing site we saw ads for businesses that specialize in warning people about the dangers of phishing emails and how to report them.  Another was for the federal government's anti-fraud task force, and Citi's identity-protection services.

But there have been some bad apples, and when we either see them or receive an email you, here's what we do:

1. We filter them from our site, which is a permanent fix.

2. We notify the ad networks that these are sketchy businesses and should be investigated.

3. We place them on a list of sites to be reported to our Watchlist.  This helps because many third-party businesses rely on our site database to make the internet a safer place. 

So, I'm glad to say that while its unfortunate to see these sites advertising on MatrixWatch, we're using it as an opportunity to rid the net of these types of scammy businesses.  Oh, and if you're the owner of a fly-by-night scam business, it would be a good idea to remove our URL from your ad-serving list.  We're coming for you.

There are literally hundreds of anti-scam communities out there, each with their own dedicated communities and specialized knowledge, but the problem is that:

a) These sites have difficulty reaching the broader internet community

b) Each site would benefit by sharing knowledge and resources with other anti-scam websites.

Our new partnership program addresses both of these problems. 

First, MatrixWatch will serve as a "hub" site where you can report fraudulent-website links and be the first to comment on and link users back to your own forums.  Since reported sites at MatrixWatch rank so highly in the search engines, your site will also rise in the rankings, and those who come here for more information will quickly find out about your anti-scam community (since you were the first to provide a link to your forum).

Second, since we have so many members from different anti-scam websites, you'll be able to share resources and knowledge.  Oftentimes, there are several anti-scam sites targeting the same type of fraud, and our partners program will enable these communities to become even more effective.

We are only offering 5 spots in this first selection round, and the selection process will be competitive.  If you would like to join the program, then you'll need to do the following:

1.  Contact us and let us know your website and your area of focus (i.e. phishing, pyramid scams, eBay auction fraud, investment scam, etc.)  Also explain why you think your site should be included in the partnership program (we're looking for best of breed sites).

2.  Use our "report a site" tool to submit at least 2 fraudulent website links.  In the comments area, provide details on why the site should be avoided, and also provide a link to your own website where users can find more information. 

3.  If you are selected, we'll feature your websites in a post on our blog, so provide us with a logo and website bio that we can list for our readers.

4.  We will provide a partners-program logo that selected partners are welcome to place on their websites.

I'd suspect that an IRS-phishing scam would be even more dangerous than, say, a similar Facebook scam, since people are used to providing their most personal details to the government.

Notice that the link at the bottom of the email actually below points to: http://www.utleyfamily-tn.org/www.irs.gov/index.htm?memberID=0xCA.0x80.0x1D.0x2

Utleyfamily-tn.org is likely a site that was hacked and is now being used by phishing scammers.

One alarming finding, however, is that eBay's total holiday visitors dropped 10% from 2006, which caused Media journalists and bloggers alike to point to the root causes.

Here are some of the reasons they are citing:

Customer Service

- Amazon upgraded their interface while eBay's has been the same for awhile now, and Amazon tends to have better product descriptions & recommendations.  This all amounts to a better customer experience.

- eBay has more pageviews per visitor than Amazon, suggesting that Amazon visitors find what they are looking for more quickly and with less clicks.

- eBay's customer-service process is notoriously horrible, while Amazon's is amazingly good.

- eBay has recently made some moves that have further strained its relationships with sellers, while Amazon has found ways to solve their pain points

- (for example....)  eBay Sellers pay a fee to list an item if it is doesn't sell.  Amazon's Seller Marketplace (competitor to eBay) doesn't charge sellers to list an item, and instead charges a flat 15% commission when they sell (NOTE:  Amazon's fees end up being 3% higher than eBay's, but it appears sellers are willing to absorb that cost in exchange for what they see as better service).

Fraud on eBay is still a problem. 

- Fraud affecting both buyers and sellers has continued to grow on eBay at alarming rates while Amazon's more controlled transaction flow prevents fraud.

- The negative-feedback system on eBay which was designed to protect & inform buyers actually doesn't work because good buyers are hesitant to give negative feedback to a bad seller in fear that the seller might retaliate and leave bad feedback in return.

- It is difficult to report fraud to eBay.  For example, you can report a fraudulent eBay auction to MatrixWatch.com in two clicks.  But for eBay Safe Harbor, it takes up to 15.

All this being said, I'm still a big fan of eBay.  Afterall, MatrixWatch.com was founded to raise consumer confidence on the internet (and especially on sites like eBay), by developing tools to keep buyers safe from fraud.  It'll be a long year for eBay, but an interesting one to watch.

The story appears to have first appeard on January 2nd on Scott Fish's blog (irony?).  It was soon picked up by TechCrunch that same day, and then Wired News ran a story about it on January 3rd. 

The scam appears as an enticing message in a user's comments: 

lol i cant believe these pics got posted….its going to be BADDDD when her boyfriend sees these- h--p://www.facebook.com.profile.php.id.371233.cn

The linked site brings up a faux Facebook login page (the URL makes "371233.cn" the rogue domain name).  The seeminly legitimiate login screen is used to hijack a user's account data.  As always if you see one of these phishing sites, report it to our Watchlist so that other users can stay safe online.

UPDATE:  One of our user's reported that the site no longer appears as of 6.12am on January 6th, 2008.

• Internet users (especially eBay members) come to MatrixWatch to report suspicious auctions or websites (including phishing sites).

• Other MatrixWatch members "flag" the reported site if they agree, and leave comments if needed. 

• Before other consumers buy from a website or eBay seller, they check MatrixWatch to see if the site or auction has been reported.  The more flags a reported site or auction has, the more likely the threat.

• The more people use MatrixWatch, the more opportunity we have to keep you safe!

 The positive results include:

1. Stronger collaboration between those who know about fraud and those who need to be warned before they get sucked in. 

2. Better consolidation of opinions and information that previously existed in fragments around the web.

3. Information about internet fraud reaches consumers faster than it would through other channels.

Our new website is a result of what we've learned in the years since we first started in 2003  --  that fraud moves so quickly on the internet that businesses, government organizations, and anti-virus software providers find it difficult to keep up.  And by the time the public finally hears about a new scam, it has already done its damage.

MatrixWatch has successfully addressed this problem by giving a voice to those consumers who see fraud happening first.  Recently, with the growth of Web 2.0 and user-driven content, we saw an opportunity to create a useful solution to help keep consumers safe online, and the idea behind our new website was born.   But we'll need your help to make it possible.  See a suspicious website or eBay auction?  Report it to MatrixWatch today and help keep your friends and family safe online!

So without further delay, here are three new tools we're introducing today:

1. Report a Site

Submitting a suspicous website or auction is now even easier than 1-2-3

If you see a website or ebay auction that looks suspicious, use this simple tool to warn other fellow consumers.  If you see a website that looks suspicious or fraudulent, just copy and paste the web address (URL) into this box and click submit.  If you're reporting an eBay auction, then you can simply enter the auction number.  You'll be directed to a fancy window where you can adjust the title and even add tags.  Hit submit again and you're done! 

2. Flag It!

See what others think of the suspicious websites & auctions you reported

Members can now easily let others know which sites & auctions to be wary of:  FLAG IT!  And if you ever change your mind, you can simply click the same button to unflag the site.  Check back often to see the sites and eBay auctions others are flagging the most!

3. The WatchList

The most suspicious sites & auctions on the web, updated in real time

This is where you can view all the other sites that people have reported and flagged.  You can also sort the flagged sites according to:

Category:  The top tabs allow you to sort by websites or eBay auctions.

Timeline:  Use "filter results" to drill down into when a site was last flagged/submitted.

Subject Matter:  Click one of the tags to see if it matches tags from another submitted site.