Business Opportunity Fraud Recent retirees or older workers who have lost their jobs through corporate downsizing often are attracted to advertisements touting opportunities for individuals to operate their own small businesses or to work from home, Pitofsky noted. According to the testimony, the Commission brings numerous cases against purveyors of fraudulent business opportunities. As the elderly begin to use the Internet, fraud operators can be expected to find them through this new channel of communication and commerce. On the other hand, he noted, the Internet's promise of substantial consumer benefits is coupled with the potential for fraud and deception. Fraud is opportunistic, and fraud operators are always among the first to appreciate the potential of a new technology.
Most Internet fraud has clear antecedents in telemarketing fraud.
The testimony states that the Commission believes it is important to address Internet fraud now. Toward that end, the Commission has filed more than 25 lawsuits against defendants whose alleged illegal practices used or involved the Internet. Some scams, however, exploit what can be done only on the Internet. The Commission vote to authorize the testimony was 4-0, with Commissioner Mary L. Azcuenaga not participating.