1. CommerceNet and Nielsen Media Research, Electronic Commerce on the Rise According to CommerceNet/Nielsen Media Research Survey, Dec. 11, 1997 (visited Jan. 22, 1998) (http://www.commerce.net/news/press/121197.html). Another 1997 survey estimated the number of children (defined as under age 18) online at 9.8 million. Interactive Research Report, Vol. 4, No. 5 at 1, May 1997 (discussing results of FIND/SVP's 1997 American Internet User Survey).

2. CommerceNet/Nielsen Media Research Survey, supra note 1.

3. Id.; Yankelovich Partners, Retailing Potential on Internet Stronger than Suspected Finds Yankelovich Cybercitizen Report, Mar. 27, 1997 (visited Jan. 22, 1998) (http://www.yankelovich.com/Information/Press_Releases/970327.HTM) (finding that 23% of users ordered and paid for a product over the Internet, i.e., "transacted" business online).

4. Internet Advertising Bureau Announces Third Quarter Advertising Revenue Reporting Program Results (visited Jan. 22, 1998) (http://www.iab.net/news/content/new%20/1211report.html).

5. Jupiter Communications, Online Advertising Report, Aug. 22, 1997 (http://www.jup.com/digest/082297/advert.shtml) (figure includes directory listings and classified advertisements).

6. Joseph Cell III and John Reed Stark, SEC Enforcement and the Internet: Meeting the Challenge of the Next Millennium--A Program for the Eagle and the Internet; The Business Lawyer (May 1997); NASAA brochure, Cyberspace Fraud and the Small Investor.

7. EZ Travels (http://www.ari.net/travelog/eztrvl-1.htm).

8. Other teaser web sites include: EZ-Toys (http://www.ari.net/eztoyz) ("at least $100,000" in a sure-fire, business-opportunity venture selling toys carrying well-known licensed brands); The Ultimate Prosperity Page (http://www.ari.net/prosper) (glowing testimonials support claim that consumers will "earn $60,000 to $100,000 in your first month."); and NordiCaLite (http://www.ari.net/nordicalite/) (weight loss without diet or exercise--"no dangerous pills, no special diet meals, no expensive doctor visits and no more rabbit food").

9. (http://www.ftc.gov/bcp/conline/pubs/invest/quiz/testiq.htm)

10. (http://www.ftc.gov/bcp/conline/pubs/briefs/invntbrf.htm)

Test Yourself: Answers

1. RI$KY. Even before they've sold the first share of stock, scam artists tell investors that only a few shares are left. But high-pressure sales tactics generally mean high-risk investments, and investing thousands of dollars without adequate time to research the offering is always risky. Don't let any promoters fool you by equating their ventures with those of large corporations. The only track record that matters has to do with the specific venture you're considering.

2. RI$KY. The people you talked with may be "singers" paid by the company to give a good recommendation. Even if references are investors and exactly who they say they are, a promoter may be paying them special "dividends" - to induce them into giving positive references.

3. RI$KY. Anyone can rent luxury office space - even fraudulent promoters. But it's more likely that they have a "mail drop" at a luxurious address - a rented box for receiving mail that is forwarded to another location. In fact, each of the "offices" may be a mail drop, an apartment, or even a boiler room. As for glossy promotional materials, they are essential tools of the trade. Scam artists know that these materials may be your main source of information; they're willing to spend money to lend credibility and sophistication.

4. RI$KY. Get profit projections in writing. Ask for evidence of the promoter's profit projections and try to confirm them with independent sources. If written materials say you could lose all your money, believe it. Investing is risky. If the talk is rosy but the written materials paint an ominous picture of the risk, trying to recover any money you've invested could be difficult.