Be part of one of America’s Fastest Growing Industries!
Be your own Boss!
Earn thousands of dollars a month from home!
Ads like this are everywhere – from the telephone pole on
the corner to your newspaper, email and favorite websites. The jobs might be
different, but the message is the same – start earning a great living today
working from home.
When money’s tight, work-at-home opportunities can sound
like just the thing to make ends meet. Some even promise a refund if you do not
succeed. But the reality is many of these jobs are scams.
The Bureau of Consumer Protection receives numerous calls
and complaints each year from consumers who are thinking of getting involved in
work-at-home plans or who have already paid in and lost their money. Many do
not want to hear any bad news because they believe that no matter how bad other
plans are, the one they are interested in is the one that will work.
Most common scams
The ad on the website excites your curiosity – earn $500 to
$1000 a week, or even $7,000 a month, running internet searches on prominent
search engines and filling out forms. Even better, you can be your own boss and
do the work right from home. What have you got to lose, except a small shipping
and handling fee?
Unfortunately, you have a lot to lose. The company is not
actually connected with a well-known search engine. Scammers are lying to try
and trick you into handing over your credit or debit card information. If you
pay them even a tiny fee online, they may use your financial information to
charge you recurring fees.
When answering such ads, you may not receive the expected
envelopes for stuffing. Instead you get promotional material asking for money
for details on money-making plans. The details usually turn out to be
instructions on how to go into the business of placing the same kind of ad the
advertiser ran in the first place. Pursuing the envelope ad plan may require
spending several hundred dollars more for advertising, postage, envelopes, and
This system feeds on continuous recruitment of people to
offer the same plan. There are several variations on this type of scheme, all
of which require the customer to spend money on advertising and materials.
According to the U.S. Postal Inspection Service, "In
practically all businesses, envelope stuffing has become a highly mechanized
operation using sophisticated mass mailing techniques and equipment which
eliminates any profit potential for an individual doing this type of
work-at-home. The Postal Inspection Service knows of no work-at-home promotion
that ever produces income as alleged."
Some multi-level marketing plans are legitimate. However,
others are illegal pyramid schemes. In pyramids schemes, commissions are based
on the number of distributors recruited. Most of the product sales are made to
these distributors, not to the consumers in general.
The underlying goods and services can vary from vitamins to
car leases; which serve only to make the schemes look legitimate. Most people
end up with nothing to show for their money except for the expensive products
or marketing materials they were pressured to buy.
Funds transfers / check cashing
The reasons why someone is needed to transfer funds or
product vary, but someone is always needed as a middle person for this work.
A check may be provided which is to be cashed. You then wire
transfer a portion of the check. The remaining money is yours to keep. You
later find out that the check is no good and eventually bounces, leaving you
with repaying the full amount of the check as well as any fees for cashing a
The money wired is gone and who collected the wire transfer
is unknown because no identification is required when collecting wired money.
The checks are a means to launder money for criminal activities. You may find
yourself in the middle of illegal activity and possibly subject to criminal
Product transfer jobs typically involves shipping packages
that may require, repackaging stolen goods and forwarding them, often outside
the United States. You are asked to pay the shipping charges; with a promise
that you will be reimbursed. You will end up receiving a bad check as payment,
if you receive any reimbursement at all.
In addition to being out any shipping charges you paid, you
may also find yourself in the middle of illegal activity and possibly subject
to criminal charges.
The ads lure you with promises of a substantial income for
full or part-time work processing medical claims electronically – no experience
needed. When you call the toll-free number, a sales rep tells you doctors are
eager for help. In exchange for your investment of hundreds or thousands of
dollars, you will get everything you need to launch your own medical billing
business including the software to process the claims, a list of potential
clients and technical support.
But companies rarely provide experienced sales staff or
contacts in the medical community. The lists they give you often are
out-of-date and include doctors who have not asked for billing services. The
software they send may not even work. Competition in the medical billing market
is fierce, and not many people who purchase these “opportunities” are able to
find clients, start a business or generate revenue – let alone get back their
investment and earn any income.
Many doctors’ offices process their own medical claims.
Doctors who contract out their billing function often use large,
well-established firms, rather than someone working from home.
To avoid a medical-billing scam, ask for a sizable list of
previous purchasers so you can pick and choose whom to contact for references.
If the promoter gives only one or two names, consider that they may be “shills”
hired to say good things.
Try to interview people in person where the business
operates. Talk to organizations for medical claims processors or medical
billing businesses. Talk to doctors in your community about the field. Finally,
consult an attorney, accountant or other business advisor before you sign an
agreement or make any payments up front.
Mystery shopper jobs may seem easy and lucrative, but they
usually turn out to be fraudulent. Some scams require you to pay a fee for the
privilege of working for the company. Other companies send you a fake cashier's
check to deposit. They instruct you to send most of the money to another
address and use only a small amount for the shopping trip. When the bank
discovers that the check is not legal, you will be liable for repaying the
The ad in your email says you can earn money by helping to
process rebates. The fee for training, certification or registration is minimal
compared to what you will earn processing rebates from home, according to the
promises in the ad. The ad says the #1 certified work-at-home consultants
behind the program will show you how to succeed like they did.
What you get are poorly written and useless training
materials. There are no rebates to process, and few people ever see a refund.
Assembly work at-home
This scheme requires you to invest hundreds of dollars in
instructions and materials and many hours of your time. This scheme requires
you to produce items such as baby booties, toy clowns, and plastic signs for a
company that has promised to buy them. Once you have purchased the supplies and
have done the work, the company often decides not to pay you because your work
does not meet certain "standards." You are then left with merchandise
that is difficult or impossible to sell.
Know who you are dealing with.
Check out the company with the Wisconsin Bureau of Consumer
Protection at 1-800-422-7128 and the Better Business Bureau at 1-800-273-1002.
Consider the promotion carefully.
Do not believe that you can make big profits easily.
Get earnings claims in writing and compare them with the
experience of previous franchise and business opportunity owners.
Get all the details before you pay.
Study the business opportunities franchise disclosure
Find out if there is really a market for your work.
Get references for other people who are doing the work.
Know the refund policy.
Be wary of offers to send you an “advance” on your “pay.”
Take your time. Promoters of fraudulent business
opportunities are likely to use high-pressure sales tactics to get you to buy
in. If the business opportunity is legitimate, it will still be around when you
are ready to decide.
When it comes to business opportunities, there are no sure
bets. Promises of a big income for working from home, especially when the “opportunity”
involves an up-front fee or divulging your credit card information should make
you very suspicious. It does not matter if the ad shows up in a trusted
newspaper, website or if the people you talk to on the phone sound legitimate.
The situation demands both research and skepticism.
If you are victimized
If you become a victim of a work-at-home scheme, ask the
company for a refund. If they refuse or give you an evasive response, tell them
you plan to notify law enforcement officials.
Keep careful records of everything you do to recover your
money. Document your phone calls, keep copies of all paperwork such as letters
and receipts, and record all costs involved, including the time you spend. If
the company refuses to refund your investment, let the company know you plan to
notify the Bureau of Consumer Protection about your experience. If you send
documents to the company, make sure you send copies, not originals. Send
correspondence by certified mail and request a return receipt to document that the
company received it.
Contact your local Postmaster if the work offer was sent by
mail. The U.S. Postal Service investigates fraudulent mail practices.