Work at Home Scams

Tuesday, February 5th, 2008

Work at home scams are everywhere, unfortunately. For a person wanting to take a step up in earnings, or someone out of work and looking for a job, these vague descriptions of potential ways to make large sums of money are usually nothing more than a scam.

You can find advertisements making ridiculous claims in the newspaper, online, on supermarket bulletin boards, in pamphlets showing up in your mailbox, even listings on eBay. They brandish statements like “Work part time in your own home and make $500 to $5000 in your first month” or “Single Mom at home makes $4000 a month”.

Work-at-home schemes appeal to our desires to get rich quick, be your own boss, work fewer hours and avoid having to make long commutes. If it looks like a scam, it sounds like a scam, then it probably is a scam. Nothing comes easy, or else everybody would be successfully doing it.

Common Work at Home Scams

Medical Billing Centers - So-called software to run a collection service from your home. What you will likely get is a few templates you could draw up yourself with any computer and a list of names and numbers taken from the phone book for you to cold call.

Envelope Stuffing - Instead of a product, you’ll likely get instructions to sell this scheme to others. Called multilevel marketing (MLM), this scam is much like a pyramid scheme and a bit like a dog chasing its own tail.

Business Opportunities - This is my pet hate, because I’ve been caught out by a few of them! You send money for information about starting a business from your home. The promises are big, with massive support, coaching and mentoring. The reality is often that you will get a nearly worthless e-book, DVD, or a sub-par service with extra costs or monthly fees involved.

Questions to Ask or Ponder

  • What do I need to do?
  • Do I have to purchase stock or materials?
  • Do I receive a salary? Or, do I work on commission?
  • Do I have to sell anything? How do I sell it?
  • Will I need to recruit others to the program?
  • How do I get my money back if I am not satisfied?
  • Interview other employees to see what the work entails
  • Do Internet searches, especially the company name with the word “beware”
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