Book Club Scams
The very open nature of the Internet has made some people vulnerable to unscrupulous parties who engage in illegal activities aimed at fooling people out of their hard-earned money. Some of the scams that have been perpetrated on the Internet include pyramid schemes and investments in nonexistent companies.
Before you conduct any financial transactions over the Internet, it is important that you verify all the information provided to you. Book clubs are especially controversial since members are asked to pay a fee before they receive their books. Some organizations that form fake book clubs do so to trick people into giving out their credit card information.
One way of using book clubs to fool people is by offering virtual versions of books to those who are not aware that electronic books are not allowed by authors.
Most of the time, those behind the scam will entice potential members with electronic books that have not come out in the market yet. They usually say that they have manuscripts of the books in soft copy and are willing to sell them so you can read the book before others do. However, their sole purpose is to get your credit card information. Once they get enough credit card information, those maintaining the site can easily close shop.
What to do
If you find yourself being enticed in this way, it would be a good idea to go to the authorities. One of the agencies where you can go ask help from is the securities commission. You can have the authorities verify the company’s operations and conduct arrests if it is proven that it is involved in such scams. It is also a good idea to check the validity of the claims of any Internet-based company before you purchase anything online.