Swimming With Sharks Internet scams, money from mom and dad, tax-trimmers

Surf the Web for business financing yields thousands of sources:banks, brokers, consultants and venture capitalists, to name a few.While some names are immediately recognizable and radiateintegrity, most aren't--and don't. Yet the semblance ofsophistication combined with ease lure unsuspecting entrepreneursinto deals that often prove costly.

"Internet financing is fraught with scams," assertsMassoud Entekhabi, a partner in the PricewaterhouseCoopers GlobalTechnology Group in Woodland Hills, California. "A simplesearch produces numerous accounts of rip-offs. And the SEC[Securities and Exchange Commission] is taking an aggressive standto combat fraud on the Net." (See last month's"Money" column for more details.)

"Many are using the Web to make quick money off smallbusinesses," Entekhabi warns. "The Internet allows themto create a sophisticated persona that enhances anentrepreneur's comfort level. You can go to a Web site thatlooks very professional and prestigious, but in reality, you haveno idea whom you're dealing with."