Wednesday, May 19, 2010

The Internet has already brought great things to the world, but has also brought spam, phishing, scamming, etc. We all have seen them across the Internet. They promise money, weight loss, or other things a person may strive for, but they usually amount to only a lighter pocket. Online advertising has become something that the increasingly Internet-reliant society has become used to, as well as more aware of. As this is true, online ads have become more intricate and deceptive in recent years.

However, a certain type of advertisement has arisen recently, and has become more deceptive than any other Internet ad, and has tricked many users into credit card charges. These sites claim to be news websites that preach a “miracle product”, and they offer a free trial, and then charge the user’s credit card a large amount of money without informing them after the trial ends. These sites appear to be operating under one venture and have caught ad pages of high-traffic websites by storm. In this report, Wikinews’ Tjc6 investigates news advertisement sites.

These Internet ads work in different ways:

Hypothetically speaking, a reader is browsing the web, and then happens to come across something that they believe is too good to be true. A link on one of these high-traffic pages promises white teeth, weight loss, or huge profits from working at home part-time. Out of curiosity, they click on the link.

This is the way that people are attracted to these fake news sites on the internet. The domain owners draw in customers by purchasing advertising on some of the World Wide Web’s most visited pages. Curious users click and are led to what they believe is a news article. From anti-aging to shedding weight, these “articles” from non-existant newspapers and television stations depict a skeptical news reporter trying a product because they were instructed to by a superior.

As the user reads on, they find that the “reporter” miraculously achieves significant weight loss, teeth whitening, or other general health and beauty improvement. The reporter states that the reader can get the same results as they did by using a “free trial” of the product.

Next, the user looks to the bottom of the page, where there seems to be a set of user comments, all of them praising the product or products that are advertised — this is where we first see something suspicious. Across several of these false articles, the comments appear to show the exact same text, sometimes with even the same usernames as other sites.

There is obviously some kind of correlation. Although this appears to be true, most users who purchase these products do not look at multiple versions of these similar pages of what appears to be a fast-growing network of interconnected fake news sites.

Once customers have convinced themselves into buying the product, they are led to a product (or products) website which promises a free trial for a very low price. What they do not know about this, however, is that they are giving their credit card data to a company that will charge it automatically after the trial ends. In about 14 days, the user receives a charge on their credit card for an excessive amount of money, usually from about $80 to $100 (USD). All attempts to contact these companies and cancel their shipments usually prove to be futile.

What these sites have is a large amount of legal copy located at the bottom of each site, stating their right to charge the user. This site, a fake news article claiming to offer teeth-whitening benefits, has several paragraphs of fine print, including this: “…Upon signing up for the 10 day trial membership you will be charged up to $4.97 depending on various shipping and initial offer promotions at that time but not more than $4.97 upon signing. If not cancelled, you will be charged $89.97 upon completion of the 10 day trial period. Monthly thereafter or 30 days from the original order date, the charge will reoccur monthly at a total of $89.97 until cancelled…,” the site says.

Practices like this have alerted the Better Business Bureau, an American organization that studies and reports on the reliability and practices of US businesses. In a press release, a spokesman from the BBB spoke out against sites like this. “Many businesses across the country are using the same selling model for their products: They lure customers in with claimed celebrity endorsements and free trial offers, and then lock them in by making it extremely difficult to cancel the automatic delivery of more products every month…,” said the report that denounced the websites.

When a user looks at several of these sites, they notice that all of them have the same exact structure. Because of this, Wikinews decided to look into where some of the domains were owned, and if they were all in fact part of one company.

However, the results that Wikinews found were ones that were not expected. Out of the three random websites that were found in Internet ads, all using similar designs and methods to attract the customers, came from three different locations in three countries and two separate continents. The first came from Scottsdale, in the United States, while the next two came from Vancouver and Hamburg. There is no location correlation, but surely, there has to be something that connected these sites together. We had to look even further to try to find a connection.

There is some correlation within the product’s contact information. A large amount of the teeth-whitening products analyzed actually shared the same phone number, which lead to a distribution center located in St. Petersburg, Florida, and several other similar distribution centers located across the Southern United States. But, that explains only one of the categories of products that these websites cover, teeth whitening.

What about the other products? The other products such as weight loss and work-at-home kits all trace back to similar distribution centers in similar places. So, what do we make of all of this?

There is obviously some company that promotes these products through the fake news advertisements, but that company is nowhere to be found on the websites. All contact information is given on the product pages, and websites are copyrighted under the name of the domain, not a company. Whatever company has been the setup for these pages has been very good at hiding themselves from the Internet, as there is no information across the web about that mysterious large advertiser.

As a result of customers buying the products and having unauthorized charges on their credit cards, a large volume of complaints are currently present on awareness sites, complaint sites, and even the Better Business Bureau. Several customers point out that they were not informed of the steep charges and the company made it extremely difficult to cancel their subscription, usually resulting in the loss of several hundred dollars.

• “The trial offer was to pay for $3.95 for the cost of the shipping for one bottle. I noticed shortly after placing the order I had a charge on my credit card for $149.95. Unknown to myself the company charges for a membership if you don’t cancel within 14 days, I cancelled within 18 days…When I called the customer service number they told me the decision has been made and my refund request was denied. When I questioned the person on the other line about what I was getting for my $149.95 she told me I was not getting anything because I cancelled the membership.“

?“Tamara”, in a post to the Ripoff Report

• “This is a “free sample” scam: Pay only postage and handling and get a free sample of a tooth whitening system, they say. I looked for the “catch,” something that would indicate that there’d be hidden or recurring charges, but didn’t see anything, and ordered. Sure enough, a couple of weeks later, I see a charge for $88.97 on my bank statement…When I called, the guy answering the phone had obviously answered the same angry question many, many times: “Why has your company charged $88.97 to my card?” “Because you didn’t cancel your subscription in time,” he said tiredly.“

?“Elenor”, in a post to the Ripoff Report

One notable lawsuit has occurred as a result of these articles. Some of the articles about work at home kits specifically advertise things like “work for Google”, or “job openings at Google”. However, Google asserts these claims as false and has taken the case to court, as it is a copyright violation. “Thousands of people have been tricked into sending payment information and being charged hidden fees by questionable operations,” said Google in a statement.

The BBB has received over 3,000 complaints about products such as the ones that Google took offense to. The lawsuit has yet to begin in court, and no date has been set.

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Thursday, March 9, 2006

Toronto’s public utility, Toronto Hydro Telecom, will make Canada’s largest city into a huge wireless hotspot.

“This is both an exciting and very important initiative for the city of Toronto”, said Toronto’s mayor, David Miller. “It puts us on the leading edge of the telecommunications industry nationwide and globally.”

Toronto Hydro Telecom will offer customers free access for the first six months. After that, it will begin to charge for services.

“Wi-Fi technology is the new benchmark for urban living”, stated Toronto Hydro president David Dobbin. “It’s standard equipment in many electronic devices, from laptops to portable entertainment units.”

Private telephone companies are questioning why a public utility needs to compete with the private sector.

Mike Lee of Rogers Communications Inc. questioned why the city of Toronto wanted to enter the internet access business.

“It will not be an easy business”, Lee told the National Post. “In this day and age, the focus should be on core operations more than anything. I was surprised to see they are looking to get into this business.”

Brian Sharwood, a telecom analyst in Toronto, said the municipality will likely install the wireless transmitters and receivers on its lamp posts as a way to blanket the city, a process known as “wireless mesh networking”.

Friday, March 3, 2006

The possibility of large-scale protests in the face of the 3,000 journalists covering the Melbourne 2006 Commonwealth Games, has event organisers and the Government worried.

The group “Black GST” – which represents Indigenous Genocide, Sovereignty and Treaty – are planning demonstrations at prominent Games events unless the Government agrees to a range of demands including an end to Aboriginal genocide, Aboriginal Sovereignty and the signing of a treaty.

The Black GST say they hope the focus of the world’s media will draw attention to the plight of indigenous Australians during the Games. Organisers say supporters are converging from across Australia and from overseas. Organisers say up to 20,000 people may take part in talks, rallies, colourful protests and many cultural festivities designed to pressure the Federal Government on Indigeneous rights issues. They want the Government to provide a temporary campsite for the supporters, saying “organised chaos was better than disorganised chaos.”

The 2006 Stolenwealth Games convergence, described by organisers as the “cultural festival of the 2006 Commonwealth Games,” was virtually opened on March 2nd with the launch of the official “Stolenwealth Games” website. Scoop Independent News and Perth Indymedia reported that the launch was held at Federation Square in Melbourne. The site contents were projected via wireless laptop by the Stolenwealth Games General Manager, and a tour of the website was given on the big screen. He said “overwhelming amusement was the response from the audience.” The group say permanent access points to the website are being set up at public internet facilities across Victoria during the coming weeks.

“Interest in the Stolenwealth Games is building all over the world and this fresh, exciting and contemporary site will draw in people from Stolenwealth Nations around the globe to find out about the latest news and events,” said a Stolenwealth Games spokesperson. “We have been getting many requests from around the world wanting to know about the Stolenwealth Games. We have provided many ways that individuals and organisations can support the campaign by spreading the word.”

The Victorian Traditional Owner Land Justice Group (VTOLJG) which represents the first nation groups of Victoria, has announced its support to boycott the 2006 Commonwealth Games until the Government “recognises Traditional Owner rights.” The group asserts that culture has been misappropriated in preparation for the Games.

Organisers of the campaign say they welcome the formal support from the Traditional Owners. “While some seek to divide and discredit Indigenous Australia, this support is further evidence that the Aboriginal people are united in opposition to the ongoing criminal genocide that is being perpetrated against the Aboriginal people” said Black GST supporter and Aboriginal Elder, Robbie Thorpe.

“We now have endorsement from the VTOLJG and the Aboriginal Tent Embassy for the aims and objectives of the Campaign and we are looking forward to hosting all indigenous and non-indigenous supporters from across Australia in March,” he said. The Black GST group have said “the convergence will be held as a peaceful, family-focussed demonstration against genocide, and for the restoration of sovereignty and the negotiations towards a Treaty.”

But the campaign has received flak in mainstream media, such as Melbourne’s Herald Sun, who wrote: “the proposal to allow BlackGST to set up an Aboriginal tent embassy at a site well away from the Commonwealth Games will be interpreted by some as the State Government caving in to a radical protest group. A major concern for the Government… is to protect the event from disruption… no chances should be taken…”

The Black GST has been planning the convergence for months, calling for Aboriginal people and their supporters to converge on Melbourne. The Melbourne-based Indigenous rights group have called on thousands of people concerned about the plight of indigenous Australians to converge on Melbourne during the Games, which they have dubbed “the Stolenwealth Games”. But the choice of Kings Domain has made conflict almost inevitable, as the area is one of the areas gazetted by the State Government as a “Games management zone”.

Under the Commonwealth Games Arrangements Act, any area gazetted as a management zone is subject to a range of specific laws – including bans on protesting, creating a disturbance and other activities. The protest bans will be in effect at different times and places, and offenders can be arrested. A spokeswoman for the Black GST, which advocates peaceful protest, said the site had been chosen because it was close to where the Queen will stay on March 15. “We figured that she is only in Melbourne for 27 hours or something like that so we thought we would make it easy for her to come next door and see us,” she said. “We are a very open, welcoming group, so she will be welcome to come and join us.”

Kings Domain is the burial site for 38 indigenous forefathers of Victoria. Black GST elder, Targan, said trade union groups have offered to install infrastructure at the site. The group initially worked with the State Government to find a suitable camp site, but the relationship broke down when the Government failed to meet a deadline imposed by the protesters. “While we are disappointed the ministers were not able to meet deadline on our request, we thank them for their constructive approach towards negotiations and the open-door policy exercised,” said Targan.

A spokesman for Games Minister Justin Madden said the Government was still investigating other sites. Victoria Police Games security commander Brendan Bannan said he was not convinced the Black GST represented the views of most indigenous people. “We are dealing with the Aboriginal community and they don’t seem to support it at all … the wider Aboriginal community don’t support disruption to the Games at all,” he said.

The Government was told that Black GST supporters would camp in Fitzroy Gardens and other city parks should it fail to nominate a site. A spokesman for Aboriginal Affairs Minister Gavan Jennings said the Government was taking the issue seriously, but had not been able to finalise a campsite before the deadline.

Under special Games laws, people protesting or causing a disturbance in “Games management zones” can be arrested and fined. While prominent public spaces such as Federation Square, Birrarung Marr, Albert Park and the Alexandra Gardens fall under the legislation, such tough anti-protest laws cannot be enforced in the nearby Fitzroy Gardens.

Games chairman Ron Walker has urged the group to choose another date for its protest march through the city, which is currently planned to coincide with the opening ceremony on March 15. The group believes that an opportunity to gain attention for indigenous issues was lost at the Sydney Olympics and has vowed to make a highly visible presence at the Games.

The Black GST said the Australian Aboriginal Tent Embassy’s sacred flame, burning over many years at the Canberra site will be carried to Melbourne before the Games, and its arrival would mark the opening of the protest camp from where a march will proceed to the MCG before the Opening Ceremony.

Black GST claims supporters from all over Australia, including three busloads from the West Australian Land Council, will gather in Melbourne during the Games for peaceful protests.

Aboriginal Affairs Minister Gavin Jennings had offered Victoria Park to the protesters. Victoria Park, former home of Collingwood Football Club, where one of the strongest statements of Aboriginal pride, when St Kilda star Nicky Winmar in 1993 raised his jumper and pointed to his bare chest after racial taunts from the Collingwood crowd.

Black GST, which has labelled the Games the Stolenwealth Games, said the State Government had failed to find a suitable venue. Black GST may encourage protesters to camp in prominent parks such as Fitzroy Gardens and Treasury Gardens. Graffiti supporting the action has also appeared in central Melbourne.

Melbourne City councillor Fraser Brindley has offered his home to the Black GST organisers. “I offered my home up to people who are organising visitors to come to the Games,” he said. Cr Brindley will be overseas when the Commonwealth Games are held and has offered the free accommodation at his flat at Parkville. He said he agreed with the protesters’ view that treaties needed to be signed with indigenous Australians. “I’m offering it up to the indigenous people who are coming to remind Her Majesty that her Empire took this land from them,” said Cr Brindlley. Nationals leader Peter Ryan said: “This extremist group has no part in the Australian community.” Melbourne councillor Peter Clarke said the actions were embarrassing and that he would try to discourage him. “It’s not in the spirit of the Games,” he said.

Aboriginal elder, Targan, said the possibility of securing Victoria Park was delightfully ironic. “There’s a lot of irony going on,” Targan, 53, a PhD student at Melbourne University, said. “GST stands for Genocide, Sovereignty and Treaty. We want the genocide of our people to stop; we want some sovereignty over traditional land, certainly how it is used, and we want a treaty with the government,” Targan said.

Wednesday, January 18, 2006

London, UK — The Vodafone GPRS (General Packet Radio Service) Mobile Data Network within the UK was off the air for several hours, but Vodafone staff were unable to supply any details as to how or why this had happened. The incident seems to have originated within Southern England, but spread “nationwide” within a short period.

Customers were therefore unable to access data services for a protracted period, including WAP browsing from mobile phones, email from personal devices like Blackberries and Windows Mobile Messengers, and full access over data cards from laptops.

Some criticism has been levelled at the company for failing to provide an easy source of information on the problem, with the only realistic option being to queue for a response from a call centre, as no information could be found on their public-facing website. This practice, whilst far from unique to Vodafone within the telecommunications industry, contrasts poorly with the common practice for most ISPs (Internet Service Providers), who conventionally provide a “system status” page on their website.

Thursday, December 20, 2007

Wikinews reporter David Shankbone is currently, courtesy of the Israeli government and friends, visiting Israel. This is a first-hand account of his experiences and may — as a result — not fully comply with Wikinews’ neutrality policy. Please note this is a journalism experiment for Wikinews and put constructive criticism on the collaboration page.

Dr. Yossi Vardi is known as Israel’s ‘Father of the Entrepreneur’, and he has many children in the form of technology companies he has helped to incubate in Tel Aviv‘s booming Internet sector. At the offices of Superna, one such company, he introduced a whirlwind of presentations from his baby incubators to a group of journalists. What stuck most in my head was when Vardi said, “What is important is not the technology, but the talent.” Perhaps because he repeated this after each young Internet entrepreneur showed us his or her latest creation under Vardi’s tutelage. I had a sense of déjà vu from this mantra. A casual reader of the newspapers during the Dot.com boom will remember a glut of stories that could be called “The Rise of the Failure”; people whose technology companies had collapsed were suddenly hot commodities to start up new companies. This seemingly paradoxical thinking was talked about as new back then; but even Thomas Edison—the Father of Invention—is oft-quoted for saying, “I have not failed. I have just found ten thousand ways that won’t work.”

Vardi’s focus on encouraging his brood of talent regardless of the practicalities stuck out to me because of a recent pair of “dueling studies” The New York Times has printed. These are the sort of studies that confuse parents on how to raise their kids. The first, by Carol Dweck at Stanford University, came to the conclusion that children who are not praised for their efforts, regardless of the outcome’s success, rarely attempt more challenging and complex pursuits. According to Dweck’s study, when a child knows that they will receive praise for being right instead of for tackling difficult problems, even if they fail, they will simply elect to take on easy tasks in which they are assured of finding the solution.

Only one month earlier the Times produced another story for parents to agonize over, this time based on a study from the Brookings Institution, entitled “Are Kids Getting Too Much Praise?” Unlike Dweck’s clinical study, Brookings drew conclusions from statistical data that could be influenced by a variety of factors (since there was no clinical control). The study found American kids are far more confident that they have done well than their Korean counterparts, even when the inverse is true. The Times adds in the words of a Harvard faculty psychologist who intoned, “Self-esteem is based on real accomplishments. It’s all about letting kids shine in a realistic way.” But this is not the first time the self-esteem generation’s proponents have been criticized.

Vardi clearly would find himself encouraged by Dweck’s study, though, based upon how often he seemed to ask us to keep our eyes on the people more than the products. That’s not to say he has not found his latest ICQ, though only time—and consumers—will tell.

For a Web 2.User like myself, I was most fascinated by Fixya, a site that, like Wikipedia, exists on the free work of people with knowledge. Fixya is a tech support site where people who are having problems with equipment ask a question and it is answered by registered “experts.” These experts are the equivalent of Wikipedia’s editors: they are self-ordained purveyors of solutions. But instead of solving a mystery of knowledge a reader has in their head, these experts solve a problem related to something you have bought and do not understand. From baby cribs to cellular phones, over 500,000 products are “supported” on Fixya’s website. The Fixya business model relies upon the good will of its experts to want to help other people through the ever-expanding world of consumer appliances. But it is different from Wikipedia in two important ways. First, Fixya is for-profit. The altruistic exchange of information is somewhat dampened by the knowledge that somebody, somewhere, is profiting from whatever you give. Second, with Wikipedia it is very easy for a person to type in a few sentences about a subject on an article about the Toshiba Satellite laptop, but to answer technical problems a person is experiencing seems like a different realm. But is it? “It’s a beautiful thing. People really want to help other people,” said the presenter, who marveled at the community that has already developed on Fixya. “Another difference from Wikipedia is that we have a premium content version of the site.” Their premium site is where they envision making their money. Customers with a problem will assign a dollar amount based upon how badly they need an answer to a question, and the expert-editors of Fixya will share in the payment for the resolved issue. Like Wikipedia, reputation is paramount to Fixya’s experts. Whereas Wikipedia editors are judged by how they are perceived in the Wiki community, the amount of barnstars they receive and by the value of their contributions, Fixya’s customers rate its experts based upon the usefulness of their advice. The site is currently working on offering extended warranties with some manufacturers, although it was not clear how that would work on a site that functioned on the work of any expert.

Another collaborative effort product presented to us was YouFig, which is software designed to allow a group of people to collaborate on work product. This is not a new idea, although may web-based products have generally fallen flat. The idea is that people who are working on a multi-media project can combine efforts to create a final product. They envision their initial market to be academia, but one could see the product stretching to fields such as law, where large litigation projects with high-level of collaboration on both document creation and media presentation; in business, where software aimed at product development has generally not lived up to its promises; and in the science and engineering fields, where multi-media collaboration is quickly becoming not only the norm, but a necessity.

For the popular consumer market, Superna, whose offices hosted our meeting, demonstrated their cost-saving vision for the Smart Home (SH). Current SH systems require a large, expensive server in order to coordinate all the electronic appliances in today’s air-conditioned, lit and entertainment-saturated house. Such coordinating servers can cost upwards of US$5,000, whereas Superna’s software can turn a US$1,000 hand-held tablet PC into household remote control.

There were a few start-ups where Vardi’s fatherly mentoring seemed more at play than long-term practical business modeling. In the hot market of WiFi products, WeFi is software that will allow groups of users, such as friends, share knowledge about the location of free Internet WiFi access, and also provide codes and keys for certain hot spots, with access provided only to the trusted users within a group. The mock-up that was shown to us had a Google Maps-esque city block that had green points to the known hot spots that are available either for free (such as those owned by good Samaritans who do not secure their WiFi access) or for pay, with access information provided for that location. I saw two long-term problems: first, WiMAX, which is able to provide Internet access to people for miles within its range. There is already discussion all over the Internet as to whether this technology will eventually make WiFi obsolete, negating the need to find “hot spots” for a group of friends. Taiwan is already testing an island-wide WiMAX project. The second problem is if good Samaritans are more easily located, instead of just happened-upon, how many will keep their WiFi access free? It has already become more difficult to find people willing to contribute to free Internet. Even in Tel Aviv, and elsewhere, I have come across several secure wireless users who named their network “Fuck Off” in an in-your-face message to freeloaders.

Another child of Vardi’s that the Brookings Institution might say was over-praised for self-esteem but lacking real accomplishment is AtlasCT, although reportedly Nokia offered to pay US$8.1 million for the software, which they turned down. It is again a map-based software that allows user-generated photographs to be uploaded to personalized street maps that they can share with friends, students, colleagues or whomever else wants to view a person’s slideshow from their vacation to Paris (“Dude, go to the icon over Boulevard Montmartre and you’ll see this girl I thought was hot outside the Hard Rock Cafe!”) Aside from the idea that many people probably have little interest in looking at the photo journey of someone they know (“You can see how I traced the steps of Jesus in the Galilee“), it is also easy to imagine Google coming out with its own freeware that would instantly trump this program. Although one can see an e-classroom in architecture employing such software to allow students to take a walking tour through Rome, its desirability may be limited.

Whether Vardi is a smart parent for his encouragement, or in fact propping up laggards, is something only time will tell him as he attempts to bring these products of his children to market. The look of awe that came across each company’s representative whenever he entered the room provided the answer to the question of Who’s your daddy?

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