Just in time for the release of the hottest gadget of 2007, the scammers are up to their old tricks again. In fact, if you use a search engine to try to find a deal on an Apple iPhone, be prepared for scam sites galore.

For example, search for keyword: iphone and check out the advertisers. Two of them allowed spammy e-mail to get sent our McAfee SiteAdvisor service. And not just a little. Our inbox averaged 66 e-mails a week after signing up with easyfreecellphones.com. But our sign-up at giveawaycafe.com resulted in a stunning 511 e-mails per week!

http://www.siteadvisor.com/sites/easyfreecellphones.com

http://www.siteadvisor.com/sites/giveawaycafe.com

The same kinds of sites result from keywords: apple iphone:

http://www.siteadvisor.com/sites/consumerresearchcorporation.com

http://www.siteadvisor.com/sites/giveawaycafe.com

And keywords: free iphone:

http://www.siteadvisor.com/sites/unclaimedfree.org

http://www.siteadvisor.com/sites/consumerresearchcorporation.com

http://www.siteadvisor.com/sites/easyfreecellphones.com

Who Wins? Who Loses? And does anyone actually get an iphone?

McAfee analysis shows that that these sites are experts at bait and switch tactics. They seem to promise a free product, typically whatever is hot at the moment – this summer that means the Apple iPhone. The sites make it seem incredibly easy to win the free merchandise. Just provide your e-mail, your mailing address and fill out an “offer” and you could have the hottest, most revolutionary gadget to hit the market! In reality, almost no one receives the promised “freebie.” These sites require consumers to start and complete three, four or even five “sponsor offers” to qualify. The offers -which require the consumer to apply for a credit card, start a student loan consolidation, or subscribe to a monthly music service– are real and often come from well known brands like eBay, Netflix, and BMG Music Club.

But few consumers are ever able to successfully complete all the requirements to actually get the free prize. Some sites even require the consumer to recruit 5 friends to complete offers. Industry insiders call it “breakage” – this inability to jump through all the many hoops – and they take pride in their ability to break 95% or more of the consumers who try.

PC World looked at this topic and helped us all understand the winners and losers.

Who loses?

• The consumer who has spammy e-mail in his inbox, a bunch of expensive subscriptions and NO IPHONE!
• The legitimate brands which get tarnished by associating with con games like these.

Who wins?

• The bait and switch “breakage” sites that walk away with big referral fees from spam advertisers and name-brand sponsors.