I doubt its illegal. As long as you are pretending to be someone and not actually stealing anyone's info or forcing them to buy/join anything, I can't imagine that this is considered illegal. However, don't you think that there might be a better way to spend your time online to make money? ;-)
I think it is not illegal but unmoral. I know people are making really good money with this but I wonder how that Feels to talk with a guy pretending to be a sexy girl...
You will end up acting like a little slutty transvestite girl for nickels and dimes. So sad, I feel sorry for your mom.
Yes, it exists bigtime. There are millions of cam models running around chat sites pretending to be just someone looking for a chat but really they want to sell their trashy welfare service to you. You can choose to go with this path but I warn you that people who actually willingly choose to be a member at your site is better than 400 who were suckered.