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Work at Home Scams

 

Avoiding Employment and Work at Home Scams

Nowadays, there are so many scams out there; people who take advantage of innocent people since they know so many of us want to work from home.
Remember: If it sounds too good to be true, it probably is! But, you need to know more than that if you are to truly avoid getting ripped off.
I think it's good advice to give when I say, AVOID anything that talks about stuffing envelopes, pyramid schemes, and people that say you can make $2,512.16 cents working while wearing your sleepers in the next 24 hours etc. Yes, you've heard about these golden opportunities before, I'm sure. Now there may be some legitimate stuffing envelope opportunities out there, but most are just a way to get your money and give you a list of companies that might pay you to stuff envelopes, but they don't give you the actual opportunity!
Don't pay for lists of companies that provide work at home. If somebody needs an employee, it's up to them to advertise where people can find the opportunity, and not where people have to pay to see the opportunity.
If anybody tries to pressure you into joining a multi-level marketing company, take the time to think about it and make sure it is a reputable business opportunity that you even want to consider joining. Don't let yourself be pressured into anything. A lot of these are legitimate, but some are not.
Ask for references, testimonials etc. Check there have been no complaints against the company by checking with the Better Business Bureau etc. Most larger businesses do belong to this association.

 Before applying for any business opportunity just answer the following questions:

 * Do the company provide a telephone contact number on their advertising? Test it out.
* Do you fully understand what you are buying before you send your money? If not, it's probably because you wouldn't buy if you knew.
* Can they provide you with names and contact details of satisfied agents?
* Is the product good value, or are you just being enticed into the opportunity to earn from signing up others?
* Are you happy that you are not going to be required to buy large quantities of a product yourself every month just to meet targets? If you aren't going to be getting repeat business will you be able to find a large enough supply of buyers for your product or service?
* Would you be happy to buy the product/service even if there were no business opportunity attached?
* Are you convinced you can make it work or just telling yourself that it doesn't matter, because they have a money back guarantee?
* Has the business received a good review in one of the quality business opportunity magazines - The Board, Money Master, Home Business World etc?
* Is the business legal ? If not they are likely to be closed down, and you'll lose any money you may have invested.

Avoid companies offering get-rich-quick schemes. In most cases they try to sell you a manual containing nothing you don't already know.

Money back guarantees are rarely worth the paper they are written on as there are usually so many get out clauses as to make them impossible to claim under.

 

*****SCAM ALERTS****

Classic work-at-home scams include:
envelope stuffing
product assembly or craft work
medical billing
reshipping
Chain letters

 

  • New scam.
    Reshipping fraud.

    Work-at-home shippers are promised substantial amounts of money. All they have to do is receive, repackage, and then mail merchandise to a foreign address. What the shipper doesn't know is that the merchandise was paid for with stolen credit cards. In effect, the work-at-home shipper becomes part of a fencing operation by receiving and mailing stolen goods.

 

  • National Home Employment Service- aka NHES, American Homeworkers Association, Global Information Systems (GIS), JobCrop

    Chris Sours uses the name Danielle Sours to post job listings for Administrative/Clerical work.
    Update: They're back. Looks like NHES is now going by the names: CDMDigital, Beverly Carson and CBPservices. He's been posting job listings at Monster.com. Click Here
    to see an example of the email he sends to prospective suckers....er, employees.

    Update: Looks like all the complaints that people filed have paid off. According to the Illinois BBB, Mr. Sours has been permanently banned from advertising his scams and was ordered to pay fines. You can see that report Here.

    Credit: http://www.2work-at-home.com

 

Work at home businesses; sometimes too good to be true


 
Barbara McAllister of Plymouth called Contact 16, after she found a work at home classified ad, stating she could make a lot of money, stuffing envelopes; she soon found out, the offer was too good to be true


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You've seen the ads on telephone poles, on the Internet and in the paper: "Earn big money at home, no experience needed".

Many people have bought into the business and have found out the hard way that the offer is too good to be true.

That's what a Plymouth woman soon realized after calling Contact 16 about a job to stuff envelopes.

Contact 16 gives you the real scoop, so you don't get cheated out of money.

Too good to be true
Plymouth resident, Barbara McAllister has had a tough time making ends meet.

She's unemployed and lives on social security.

So, when Barbara saw a newspaper ad touting "Make money by working at home", she says, "It sounded real good."

The job was to stuff envelopes with brochures. She would make $5 per envelope.

 
The FTC has set up a teaser web site to help educate the public...

"For 400 envelopes you can make $2000," said Barbara.

It sounds good so far, but Barbara soon spotted a red flag. "It said you had to send $30," she explained.

Thinking this could be a scam, Barbara called Contact 16 to investigate.

"We thought we'd have it checked out before we sent any money, since I had heard about Contact 16," says Barbara.

 
...do a search for a work at home business and this one might pop up, but, if you try to buy into the business, you'll will get warnings about work at home scams

Contact 16 called The Federal Trade Commission. It's their job to crack down on work at home scams. The FTC says it looked far and wide to find a person who got rich by operating one of these work at home opportunities, and found no one.

Mike Davis of the FTC said, "Envelope stuffing opportunities are almost always scams."

The FTC has set up a teaser web site to help educate the public. If you do a search for a work at home business, a variety of sites might pop up.  However, if you try to buy into the business, you'll will get warnings about work at home scams.

What are some questions to ask before investing?

  • What are the specific tasks I'll be required to do?
  • Who will pay me and when?
  • Do I have to pay in advance?

Legitimate companies should answer all of your questions about their programs in writing and for free.

"As long as there are people willing to take advantage of other people, these scams will continue to flourish," says the Davis.

Barbara was smart enough to not send in the money.

Even she knows there's no such thing as a free lunch. "I can't afford to lose money like that," she said.

If you've been scammed...
If you've lost money to a work at home scam, contact the company in writing and ask for your money back.

If that doesn't work, contact your state's attorney general's office.

ATTENTION

  • Don't give out personal information or credit card details

  • Be suspicious of any offer that doesn't pay a regular salary or involves working for an overseas company.

Identity Theft
Publication 280

Consumer Fraud By Phone or Mail
Publication 281

Consumer & Business Guide to Preventing Mail Fraud
Publication 300-A

Because the Mail Matters
Publication 162

Sweepstakes Advertising
Publication 546

Mail Fraud Report
PS Form 8165

 

If you have been scammed you can contact them:

 

YOUR LOCAL BETTER BUSINESS BUREAU
DIRECT MARKETING ASSOCIATION
FEDERAL TRADE COMMISSION
NATIONAL FRAUD INFORMATION CENTER
U.S. POSTAL INSPECTION SERVICE
 
Also

The Canadian Council of Better Business Bureaus. Call 416-644-4936 (Eastern time zone).

The Canadian Competition Bureau. Call toll free 1-800-348-5358.

In the U.S. contact:

The Better Business Bureau.

The Federal Trade Commission. Call 1-877-FTC-HELP (1-877-382-4357).

If you need advice about an Internet or telemarketing solicitation, or you want to report a possible scam, use the Online Reporting Form or call the NFIC hotline at 1-800-876-7060.

 

 

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