There are indeed legitimate online degrees and many who earn them work cats&dogs for their diplomas/plaques at accredited institutions. I would however like to point out that an overwhelming percentage of online institutions are irreputable. Their bogus claims to help one earn a prestigious degree at an alarming pace(usually within 18 months) is preposterous and far-fetched.
"In 1999, Louisiana shut down Columbia State University, a notorious degree mill that advertised in prestigious publications such as "The Economist" that students could earn "legal, accredited" degrees in 27 days. It also had a professional looking Web site and brochure, which showed pictures of a beautiful campus and stately buildings. The "official seal" shown on Page 5 of the brochure was never an accrediting agency. Columbia State's real "administrative office" was mailbox No.231 at Mailboxes Etc. in Metairie, Louisiana."
source of the quoted material:
http://www.elearners.com/resources/diploma-mills.asp