Desperate people are often naive to give in to these work-at-home/home based business opportunities that look like the real deals.
Today, we are going to talk about something that we did not discuss yet and the topic is work-at-home and home based business scams.
Before we move on, we want to stress something and make it clear:
The number of fraud claims have been steadily on the rise according to the FBI reports in 2002. Earlier than 2002, the number has increased by three times and this should not be something that you should feel shock about.
We will start the discussion now.
Top 10 Work from home Jobs and Home Based Business Scams to Avoid and How You can Prevent Becoming their Victims – Part 1
Home based business and work-at-home scams are the two most common ways that people get scammed on the web.
We will discuss the top 10 home based business/work-at-home scams in the article. We will explain how these scams work, for example envelope stuffing, secret shopping and other types of home based business scams that you often notice online.
We will share with you some tips on how to recognize work-at-home job/home based business opportunities and avoid becoming their victims.
What You Should Know about Work-At-Home Jobs and Home-Based Business Scams
These are the two most common types of scams that exist. Scammers who use the two scam methods together set their targets on people who are thinking of making money from their homes.
Work at Home scam means you are given a work that you can do at home for example putting a flyer into an envelope, craft assembly and etc where you will be paid based on how many you have done.
There are such telecommuting jobs that are legitimate and truly pay but the majority of them are scams.
It is to remind you of what Beverley Williams of American Association of Home Based Business has said before, that, in truth, there is only a limited number of legitimate work-at-home jobs.
Home Based Business scam means they help you to setup a business that you can operate from home, for example becoming a secret shopper and multi level marketing (MLM) but it is often the case that the one who introduce you the job is the one that really make money.
Despite so many scams around, it is possible to start your own home based business. We will guide on which home based business can truly bring in income and which one is not worthwhile your effort and will scam your money.
Our aim is to educate you on making the right decision so that you won’t waste your precious time and money on scams. As the saying goes, it is always a scam if the job just look too good to be true.
Why are People So Easy to be Tricked into These Scams?
The reason why many people are tricked into believing these scams has to do with the needs that they are hoping to meet. Newbies are the most vulnerable to the make money fast scams and the following groups often fall prey to home based business opportunities. You could be one of the groups of people described here.
Ill people, amputees or seniors: Ill people, amputees, and seniors will face difficulties in getting a job.
Housewives: Housewives who stay at home to look after their children are always looking for a way that can help them to bring in more income for their households.
Low income households: You and your husband are not earning enough or both of you are not currently employed so it is natural to feel worried and easily give in to scam offers because of the pressures to pay the bills.
People who did not complete college: People who find it hard to get a job without a college education are also victims to these scams but that does not mean that you are not smart.
As you can see, those who are facing financial problems are the ones that are most likely to become the victims of the scammers.
The 10 Most Popular Home-Based Business and Work-At-Home Jobs Scams
In case you are wondering about the numbering in the list below, the ranking of these scams are neither based on the amount of money that have been lost nor based on the number of victims that fell preys into the scams. The list below is simply a compilation of the top 10 home based business scams that are most upsetting to have take place on the web.
This a scam job where you are asked to assemble a variety of stuff that are usually craft projects and they promise that you will get paid for a high rate per piece. Those who want to take on the job must pay a fee in order to get the starter kit that includes a step by step guide and parts.
It may sound enticing but they often deceive these workers by claiming that the assemblies do not meet the minimum specifications.
It is very hard to assemble the craft according to their specifications even and they will still disapprove it even if it is assembled by a robot. The company is the one that is making money by using misleading advertisement to trick you into buying the starter kits instead of selling the product that you have assembled. Right now, all you have is a set of crafts that you assembled and you have no way of selling them.
9. Home Medical Billing Scams
People who are interested in this scam have to fork out $300 – $900 to get all the equipments for starting a medical billing service. They claim to provide you with a professional medical billing software and teach you how to get clients in the neighborhood.
The truth is that the majority of the clinics let their staff process the medical bills or they would hire a company to handle the task. It is very seldom that they would hire individuals to complete the medical billing tasks. The reason why they don’t outsource to individuals is because they require a medical billing software that meet their strict requirements. Regarding to the list of clients you are provided, the clients listed are no longer interested in medical billing services.
It is very hard to get a refund once you pay the upfront fee to the medical billing company.
8. Home Email Processing System Scam
This scam is based on the envelope stuffing scam. The company hiring you to do the email processing job from your home will pay only $50.
What do you think are the duties of an email processor? You must be hoping that the work only involve forwarding or making some edits in the emails but this isn’t true. You will be asked to help them in spamming the same ad which you have responded for the email processing job at various online groups and public internet discussion forums.
So, you can clearly see that it is scam if they say they will pay you $25 for processing each email.
7. Fake List of Companies that Promise Work-at-Home Jobs
This is a scam that requires you to pay some money upfront to get a list of companies that supposed to offer many work-at-home jobs.
The list that you are provided with has a long list of companies but these companies are no longer exist or they are not looking to hire people for work-at-home jobs. You will not be able to get a refund if you get cheated into buying the list.
6. 1-900 Number Scams
You are not asked to pay a lot of money upfront for this scam. But, participants are asked to dial the 1900 numbers and it costs money to make a phone call so you can imagine how these scammers are able to cash in.
You should never waste your money by dialing the 1900 number several times in hope of getting more details on the fake work-at-home job.
5. Scam Home Typing Jobs
Most people who are online for most of the time are equipped with a good typing skill. You are thinking of finding a job that allows you to make some money by doing typing jobs at home.
The person interested in this so called typing job will need to send some funds to the scammer before they will release more details. The scammer will send you a disk and other printed materials that include instructions on how to set up home typist ads and you are also taught how to sell the disk to the responders of the ad. The scam will make you a scammer just like the scam job mentioned in number 8.
4. Scam Spamming Job
You can indeed turn your computer into a machine that help you make money. But, this scam ad do the opposite by guiding you on how to use your computer to create spam on the web.
This spam is just the same as the one listed in number 5. They will send you instructions on placing ads so that you can help them to get more people that will also convert their computers into a machine for spams after you send the fee.
3. Multi Level Marketing Consumer Fraud Scam
Multi level marketing, also known as networking marketing, are companies like Amway that hire agents who collect a commission for selling their products or services.
The sign that a MLM could be a scam is if its goal is not to sell the product/service to the customers.
Scam MLM usually involved searching for new people to join the program instead of selling the products and services. It is up to the discretion of the Federal Trade Commission to determine if it is a pyramid scheme; if they considered it as a pyramid scheme, all the money you have earned will be confiscated and you will be guilty of committing fraud.
We came across a MLM scam where the company claimed that the products that they sell do not cost money. In the terms and conditions, it explains that the products are free but you have to help them promote the product and the commissions you earn may exceed the cost of the product. This looks more like a scam.
2. Chain Letter Pyramid Scheme Scam
If you use the internet a lot, you must have seen one of these chain emails before. This scam works by asking you to compose an email and also send some funds via slow mail to the top names in the list. You are to add your name to the bottom and they promise you will be a millionaire one day by doing so.
The only possibility is that you will get charged with fraud if you do what their instructions says. It is a pyramid scheme used by scammers since a long time ago and the majority of the names in the emails are fake. This is to make sure that only the first few names on top of the list will make money.
The scam is asking you to do something illegal and you will lose your money instead of making money.
1. Home Envelope Stuffing Scam
This is a traditional scam that has been in existence as early as the 1920s and 1930s when America was affected by the Depression era. Many scammers have also successfully made off with some money by using this scam online.
There are a variety of envelope stuffing scams. An example of how this scam works is that they agree to pay you $1-$2 for filling an envelope. You must first pay a fee to a get 1,000 envelopes for stuffing per week and these envelopes already include the stamps and address printed on them.
They will send you a short instruction along with the flyer templates after you send in your money. You are supposed to distribute the flyers to the people in the town. As you can see, this is just another scam that ask you to help them advertise. When people see the flyer, they just send $2 in the envelope that is printed with your address. When you receive the envelope, you simply fill the envelope with the same flyer and send it back to the sender.
This is a smart way to scam people and it is definitely illegal and not a moral thing to do.
We will give you another 10 tips on how you get prevent getting scammed by fake home based business/work-at-home opportunities.
Hope you have a nice month ahead of you without getting scammed.