Google sues work-from-home scammers

A screenshot of one of the alleged scam websites.

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The Google-branded ads promised "up to $978 a day working from home", but all job seekers got in return for their application was a recurring bill on their credit cards.

Now Google is suing Pacific WebWorks, the company alleged to have created the scam ads that have fooled thousands of job hunters into thinking they were applying for work with the internet giant.

The scam directs applicants to pay shipping and handling costs for a free kit that will show them how to make money from home with Google. Credit cards are then charged with substantial ongoing fees, while the job seeker receives nothing.

Because the logo is displayed prominently on the ads, Google claims the unaffiliated websites are misusing its trademark to deceive unsuspecting consumers, many of whom have turned to Google to lodge complaints and ask for refunds.

The lawsuit for trademark infringement, unfair business practices and cyber piracy has been lodged against Utah-based Pacific WebWorks as well as several other unnamed defendants in the US.

"Misleading ads try to take advantage of consumers in the midst of a difficult economy, and as the economic situation has worsened, the problem has only grown. As far as we can tell, thousands of people have been tricked into sending payment information and being charged hidden fees by questionable operations," Google said.

Numerous complaints about Pacific WebWorks on a consumer watch website allege the company also used eBay's logo to trick consumers into signing on to its credit card scam.

In July the US Federal Trade Commission launched a crackdown on all scammers attempting to profit from the economic downturn.

"Thousands of people have been swindled out of millions of dollars by scammers who are exploiting the economic downturn. Their scams may promise job placement, access to free government grant money, or the chance to work at home. In fact, the scams have one thing in common - they raise people's hopes and then drive them deeper into a hole," said David Vladeck, director of the FTC's bureau of consumer protection.

Although these kinds of scams have been around for a while, there was a spike corresponding with the recession, when people began to search much more for terms like "make money" and "online jobs", a Google spokesperson said.

Clive Hawkins, managing director of Web Marketing Workshop in Sydney said he was aware of similar work-from-home schemes operating in Australia, but these were not widespread. "These schemes have been around for years, before the internet, and the Google one is just another variation of the model."

He said most AdWords campaigns were valid forms of advertising with editorial review processes in place to vet new search terms and adverts.

"The websites that people may visit from these adverts need to be treated in the same way as any website. Do they look reliable, is the site a registered company or with a specific postal address and telephone number (not just a mobile), and is it making extreme claims of success or money?" he said.

Google has pledged to continue cracking down on fraudulent sites, removing scammy URLs from its index, and permanently disabling AdWords accounts that provided "a poor or harmful user experience", regardless of whether they use Google's trademarks.

"That said, we can't guarantee that schemes like these won't pop up, like the proverbial 'Whack-A-Mole', someplace else online - either on a different network or under a different name," it said.