Avoiding Home Business Scams
Copyright © Rahimah Sultan

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People fall for home business scams all the time and millions of dollars are lost. Many of these scams are aimed at stay-at-home parents, unemployed individuals, the elderly, disabled and those with low incomes.

The first hint of a scam is the fact that the offer seems too good to be true. If a work-at-home opportunity offers claims of a lot of money within a very short period of time, it is likely to be a scam and should be avoided at all costs.

Another clear indicator that you are dealing with a con artist is being asked for money up front. While you do need to invest some money up front for a home business, legitimate companies will never ask you to pay them just to hire you. If you are required to pay an upfront fee, it is best to use a credit card and not cash, since with a credit card you have a better chance of getting your money back should the opportunity be fraudulent.

Beware of business opportunities that give you a 1-900 number to call for additional information, as you will be billed a hefty charge for making the call, and part of the cost to you goes to the person running the scam. Other common home based business scams that you should avoid include envelope stuffing, product and craft assembly, pyramid schemes (offers for you to sign up people but no products are involved), medical billing, type-at-home and unsolicited emails or Internet schemes.

Don’t be pressured into responding immediately to any offer. Take your time to research the company before making a final decision to join. Check with the Better Business Bureau to see if any claims have been filed against the company. If the company has no telephone number or uses only a post office box, you should be wary. And, before signing with a company ask for a detailed refund policy in writing.

If you end up being the victim of a scam, try to contact that business first and ask for a refund. If this doesn’t work then you should let that company that you will be contacting law enforcement officials. Then proceed to contact one or more of the following: The Federal Trade Commission, the Better Business Bureau, the Attorney General in your state or the U.S. Postal Inspection Service.

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