Scams to watch: the Internet is full of ways to dupe people out of their money.

Online scams have been around since the Internet's creation. But as the information superhighway grows and becomes more complex, so, do online scams. For example, 2005 marked the first time that wire transfers were the predominant way scammers collected money. In addition, consumers lost $14 million to Internet fraud in 2005, up from almost $6 million in 2004, according to the National Fraud Information Center.

The overpayment scam has been around for years but scammers have expanded the scope of items targeted, says Brett M. Christensen, who runs the Hoax-Slayer Website. The seam usually targets consumers who sell big-ticket items such as automobiles, boats, and electronic equipment but can now include the sale of animals, house rentals, and more. A prospective buyer will submit an offer and send a check for more than the proposed amount. The buyer will then ask the seller to wire the overpayment to a particular account. The seller wires the money before the check has cleared, only to find out later that the check has bounced. If you do sell merchandise online and the buyer sends you more than the allotted amount, suspend or cease all business transactions with the "buyer" immediately. There is no reason that you should be paying a buyer anything.

Lottery seams are also prevalent. "People receive an e-mail from a sweepstakes outfit telling them that they've won," says James Perry, consumer service coordinator for the National Fraud Information Center. "When they call, someone tells them they need to wire certain fees." If you have not entered a legitimate sweepstakes, assume that any e-mail correspondence suggesting you've won something is a seam. If the e-mail says someone else entered your name, verify the identity of that person. In any case, you shouldn't pay out of pocket if you've won something. "If it sounds too good to be true, it's probably a seam," says Perry.

Ransomware is another new seam tactic, says Audri Lanford, co-director of ScamBusters.org. Stammers hack into your computer, encrypt your computer files, and then charge a ransom in order for you to get the decryption key; which would let you read the files again. The best way to protect against this type of scam is to set up a firewall using software programs such as Norton Personal Firewall 2006 or McAfee Internet Security Suite and to avoid opening unfamiliar e-mail attachments.

"Even the most educated person can be a victim of these seams," says Perry. The best ways to avoid getting duped: Never click on a link in an unfamiliar e-mail and don't respond to any unsolicited messages.

SCAM-RELATED SITES

www.hoax-slayer.com is updated frequently to include the latest scares. A free monthly newsletter alerts subscribers to the latest e-mail hoaxes and Internet scams.

www.fraud.org has an online complaint form as well as a toll-free hotline. It offers tips for spotting fraud and provides information on the latest scams.

www.scambusters.org includes information on popular scams and urban legends. A free newsletter offers the latest scare information.

www.ic3.gov is a partnership between the FBI and the National White Collar Crime Center where consumers can complain about Internet scams.

www.consumer.gov/econsumer gives consumers a place to report Internet scams that they believe originated in other countries.

ONLINE SCAMS

The average loss experienced by victims of Internet fraud in 2005 was $1,917.

In 2005, wire transfers were the most common method of payment used by victims of Internet scams.

Americans lost $13,863,003 to Internet scares in 2005.

The largest percentage of complaints by scam victims in 2005 was for merchandise that was misrepresented or never delivered (42%).

In 2005, consumers over the age of 60 were 21% more likely to fall victim to phishing scams than others. (Phishing is a thief's attempt to fraudulently acquire sensitive information such as passwords.)