The consumer affairs office of the state of Massachusetts has created a
series of phony websites designed to teach people how to avoid online scams. The sites advertise products such as work-at-home deals, weight-loss products, and free trips. If anyone tries to order something from these sites, they're directed to a page identifying it as a scam and telling them how they could have spotted the scam. My favorite one is the
"Envelope Elf" site.
The SEC did something similar back in 2002. It created a hoax site for
McWhortle Enterprises, Inc. The idea was to teach investors that just because a company has a website, that doesn't mean it's a legitimate business.
The SEC actually registered the domain name mcwhortle.com. The Massachusetts consumer affairs office, however, parked all its hoax sites at the same domain: http://topmassachusettsdeals.com. I think they should have paid the $20 and registered envelope-elf.com.
Comments
I'm glad to see the SEC taking action and helping people to learn how to spot scams.
Good stuff.