By Gary Geyer
“Want to make a little extra cash?”
Today’s tough economic times have increased the amount of scammers looking to take advantage of those desperate to make money and find a job. Any opportunity where you can “make money fast,” “no experience is necessary,” or “work in your underwear” are just the grabbers we want to hear.
A good rule of thumb is, “If it seems too good to be true, it probably is.”
Anyone seeking a better job or looking to earn some money can get sucked into a scam. With the wide scope of the Internet, every bogus “job” can reach hundreds of thousands of people. Those of us over 50, boomers, seniors and retirees are often easy targets because many of us are now looking for ways to supplement our incomes.
The Top 10 Home-Based Business/Work-At-Home Scams and how to avoid them
1. Craft Assembly
This scam encourages you to assemble toys, dolls, or other craft projects at home with the promise of high per-piece rates. All you have to do is pay a fee up-front for the starter kit… which includes instructions and parts.
Sounds good? Well, once you finish assembling your first batch of crafts, you’ll be told by the company that they “don’t meet our specifications.”
In fact, even if you were a robot and did it perfectly, it would be impossible for you to meet their specifications. The scammer company is making money selling the starter kits — not selling the assembled product. So, you’re left with a set of assembled crafts… and no one to sell them to.
2. Medical Billing
In this scam, you pay $300-$900 for everything (supposedly) you need to start your own medical billing service at home. You’re promised state-of-the-art medical billing software, as well as a list of potential clients in your area.
What you’re not told is that most medical clinics process their own bills, or outsource the processing to firms, not individuals. Your software may not meet their specifications, and the lists of “potential clients” are outdated or just plain bogus.
3. Email Processing
This is a twist on the classic “envelope stuffing scam” (see #10 below). For a low price ($50?) you can become a “highly-paid” email processor working “from the comfort of your own home.”
Now… what do you suppose an email processor does? If you have visions of forwarding or editing emails, forget it. What you get for your money are instructions on spamming the same ad you responded to in newsgroups and Web forums!
Think about it — they offer to pay you $25 per email processed — does that sound legitimate?
4. A List of Companies Looking for Home Workers
In this one, you pay a small fee for a list of companies looking for home workers just like you.
The only problem is that the list is usually a generic list of companies, companies that don’t take home workers, or companies that may have accepted home workers ages ago. Don’t expect to get your money back with this one.
5. “Just Call this 1-900 Number for More Information…”
No need to spend too much time (or money) on this one. 1-900 numbers cost money to call, and that’s how the scammers make their profit.
6. Typing At Home
If you use the Internet a lot, then odds are that you’re probably a good typist. How better to capitalize on it than making money by typing at home?
Here’s how it works: After sending the fee to the scammer for “more information,” you receive a disk and printed information that tells you to place home typist ads and sell copies of the disk to the suckers who reply to you. Like #3, this scam tries to turn you into a scammer!
7. “Turn Your Computer Into a Money-Making Machine!”
Well, this one’s at least half-true. To be completely true, it should read: “Turn your computer into a money-making machine… for spammers!”
This is much the same spam as #6, above. Once you pay your money, you’ll be sent instructions on how to place ads and pull in suckers to “turn their computers into money-making machines.”
8. Multi-Level Marketing (MLM)
If you’ve heard of network marketing (like Amway), then you know that there are legitimate MLM businesses based on agents selling products or services.
If the MLM business opportunity is all about finding new recruits rather than selling products or services, beware: The Federal Trade Commission may consider it to be a pyramid scheme… and not only can you lose all your money, but you can be charged with fraud, too!
9. Chain Letters/Emails (“Make Money Fast”)
If you’ve been on the Internet for any length of time, you’ve probably received or at least seen these chain emails. They promise that all you have to do is send the email along plus some money by mail to the top names on the list, then add your name to the bottom… and one day you’ll be a millionaire.
Actually, the only thing you might be one day is prosecuted for fraud. This is a classic pyramid scheme, and most times the names in the chain emails are manipulated to make sure only the people at the top of the list (the true scammers) make any money.
This scam should be called “Lose Money Fast” — and it’s illegal.
10. Envelope Stuffing
This is THE classic work-at-home scam. It’s been around since the U.S. Depression of the 1920s and 1930s, and it’s moved onto the Internet like a cockroach you just can’t eliminate.
There are several variations, but here’s a sample: You are promised to be paid $1-2 for every envelope you stuff. All you have to do is send money and you’re guaranteed “up to 1,000 envelopes a week that you can stuff… with postage and address already affixed!”
When you send your money, you get a short manual with flyer templates you’re supposed to put up around town, advertising yet another harebrained work-from-home scheme.
And the pre-addressed, pre-paid envelopes? Well, when people see those flyers, all they have to do is send you $2.00 in a pre-addressed, pre-paid envelope. Then you stuff that envelope with another flyer and send it to them.
Ingenious, but illegal and unethical.
10 Tips on Avoiding Work At Home and Home Based Business Scams
1. Never, NEVER pay for the chance to work!
This is the cardinal rule. You should treat working at home just like you would treat working for an employer at their place of business. If you were going for an actual job interview and the interviewer asked you to pay $50 or $100 to land the job, for starter materials, or for a ‘good faith’ payment to make sure you were serious about the business? You’d think, “how stupid does he think I am?” No legitimate company charges employees a fee for a job.
Home-based businesses, on the other hand, may require start-up costs to cover investments, materials, franchises, or other items.
2. Check out the business before you pay anything.
These people who are asking for your money…have you heard of them? Check them out carefully. Make sure they have a physical address and a phone number. Call to see if it’s a real phone number. Do a search on http://www.Google.com to see if you can find any positive or negative comments. Check references carefully.
Some warning signs of scammer companies:
- They use free Web hosting services (such as Tripod or Geocities).
- They use free Web email services (such as Yahoo! Mail or Hotmail).
- They use Post Office boxes for mailings and don’t disclose their real addresses.
- They won’t give you a telephone number where you can contact them.
3. Use your credit card to make purchases.
You read that right. If you are going to buy a starter kit or make some investment relating to a home-based business, purchase use your credit card. That way, if you don’t receive the items or if things go wrong, you can dispute the charges with your credit card company. If you’re unsure how to do this, speak to your credit card company before you make the purchase.
4. Research the market for the proposed business/work.
Every scammer will promise unlimited wealth and easy work. With a little virtual footwork, you can see whether you can make money doing this kind of business or work.
If you’re thinking of starting a medical billing practice, for example, call a few doctors and hospitals in your city or town and ask if there would be a market for your services. You may be surprised to discover just how limited the market really is.
5. Beware of lack of information and incredible claims.
Companies that don’t give their names, costs, or other important information in their ads usually have a good reason not to do so — they’re scammers. Be wary of claims that you can “make up to $1,000 a week” doing just a few hours’ worth of unskilled work.
6. Ask yourself, “Does this make sense?”
Think about whether you would make the same kind of offer you’re being pitched. For example, you’ve read an ad where you can earn $1-2 per piece stuffing envelopes. But companies nowadays have access to sophisticated mailing equipment that can stuff thousands of envelopes an hour — why would they pay you so much more?
7. Consider starting your own home-based business.
If you’re really interested in working for yourself, starting your own home-based business can be a great idea. It also involves a lot of work, a lot of time, and some investment. If you are willing to do what’s necessary to make it a success, starting your own business may well become one of the best decisions you ever made. But you must do your homework!
8. Don’t tell the world you’re desperate.
Posting messages on forums saying that you are in financial trouble, or desperate to find work from home is a bad idea. Desperation is like blood to sharks — it’ll bring all of the scammers out of the woodwork, and you’ll be inundated with phony offers. You may be in dire straits financially, but it’s worth your while to act calmly and professionally — just like you would in a real-world job search.
9. Have patience
If you’re looking to start a home-based business, or looking for telecommuting work you can do at home, you may have a considerable search ahead of you. Don’t let scammers use high-pressure tactics to sucker you in. If you’re given a time-limited offer, there’s usually a reason why — scammers know that pressure brings in people!
10. And most important, NEVER EVER reply to spam.
Fraudulent offers for home-based businesses or work-at-home opportunities almost always arrive as spam. The better it sounds, the less likely that it’s legitimate. Scammers aren’t planning to deliver anyway, so it doesn’t matter what they promise. Delete and move on.
Remember, if it’s spam, it’s a scam!
Gary Geyer is Chief Editor of Let Life In
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