Avoid Work at Home Job Scams

Homepreneurs blogs about telecommuting work at home jobs, and home businesses to get people working.  While we do our best to provide solid leads, we simply do not have resources to follow every single advertised or posted opportunity.  If any mistakes are found, we’d like to know so we can continue to provide legitimate information.  Homepreneurs consists of free information provided to our visitors, available from books, magazines, word-of-mouth and the Internet.  Sources are cited and writers credited virtually 100% of the time when applicable.

Part of our goal is to give you opposing opinions so you can make informed decisions about your future.  We don’t and can’t know individual circumstances, but we can provide information to consider your options.

One of the most important ideas is to understand that many work at home and home business job options are scams, bogus or something other than advertised.  This is especially true during this period of high unemployment when people get desperate for money.  The first rule to follow is common sense: if it sounds too good to be true, it probably is.  Listed below are a number of other possible scams to avoid.

–        Pyramid Schemes: (1)

Also referred to as franchise fraud or chain referral schemes—are marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product. The real profit is earned, not by the sale of the product, but by the sale of new distributorships. Emphasis on selling franchises rather than the product eventually leads to a point where the supply of potential investors is exhausted and the pyramid collapses.

MLM or Direct Marketing companies can easily be pyramid schemes, where money is made by recruiting a team, not by selling a product or service.  Many MLMs are legitimate – Avon, Pampered Chef, Lia Sophia, Tastefully Simple, and others – but research the opportunity first via the-dma.org.

–         Example of a Work-From-Home Scheme: (1)

An individual applies for a position as a rebate or payments processor2 through an online job site    or through an unsolicited email.

As a new employee, the individual is asked to provide his/her bank account information to his/her employer or to establish a new account using information provided by the employer.

Funds are deposited into the account that the employee is instructed to wire to a third (often international) account. The employee is instructed to deduct a percentage of the wired amount as their commission.

However, rather than processing rebates or processing payments, the individual is actually participating in a criminal activity by laundering stolen funds through his/her own account or a newly established account.

–        Medical Billing: (2)

You pay several hundred dollars to start your own medical billing service at home.  You are promised training, equipment, and a list of clients.  In reality, almost all hospitals and clinics do their own billing or occasionally outsource the task.  Good luck getting your money back.

–        Email Processing: (2)

A digital version of the classic “envelope stuffing scam.”  Why would any legitimate company pay you to send their company emails out?

–        Craft or any Assembly: (2)

Assemble as many toys, dolls or swiffers as you can.  For a modest up-front fee, you’ll get instructions and parts.  The more you make, the more you earn!  Reality check: most small items like this are made in China anyway for pennies on the dollar.  Companies use robots and assembly lines to make thousands of sets in an hour.  You and a small army could not.

Basic rules to remember:

–        Never pay for any training, materials or for the promise of work.  No honest company would ever charge you to work for them.

–        Research the business.  Call the number, use the yellow pages, check on the Internet, call the Better Business Bureau or local chamber-of-commerce or city government.

–        If you do make a purchase for something related to a home job, use a credit card.  Visa, Mastercard and others can investigate and cancel the transaction.  NEVER pay with cash.

–        Be smart, be patient, use common sense.  If it seems or feels bad, it probably is.  There are many legitimate businesses out there that allow some work from home.

Or, you can avoid all these traps and start your own business, run your own operation, and know that you are doing something for yourself.

By Dion D Shaw

Dion D Shaw is the founder and owner of Homepreneurs.

Homepreneurs.  New Day.  New Opportunity.

Article sources:

1)     Federal Bureau of Investigation (FBI)

2)     Scambusters.org

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3 Responses to Avoid Work at Home Job Scams

  1. […] Avoid Work at Home Job Scams « Homepreneurs's Blog Tags: new distributorships, Pyramid Schemes, medical billing, potential investors, solid leads, Federal Bureau […]

  2. The key is to research the opportunity and the person that is presenting it. There is a lot good ones out there, but the key is you also have to do the work once you decide to get started with one

  3. […] Popular Work at home JobsGuide to Finding the Perfect Work at Home Job eBook + $5 Amazon Gift Card GiveawayAvoid Work at Home Job Scams […]

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