Before you invest in a business opportunity, protect yourself and take some measures to avoid home business scams. According to the FTC, people lose over $100 million a year due to work at home fraud which has increased each year for the last three years.
Why do so many people fall prey to work from home scams when the percentage of legitimate home based businesses is very small? One of the reasons is that most people tend to react emotionally instead of making an informed decision. In addition, many people need extra income and are looking for a quick or easy solution. Finally, most of these rip-offs require a small fee, small enough to take a chance.
Remember there is no such a thing as a get-rich-quick home based business. If it sounds too good to be true, chances are it’s a scam!
Don’t volunteer to be a victim and take these steps to avoid getting ripped-off:
1. Use your credit card instead of cash. It’s easier to get your money back if you are a victim of fraud.
2. Call directory assistance! If a company is not registered in the city they claim they're located in, and under the exact name they are advertising under, don't do business with them.
3. Avoid companies that accept only Clickbank and PayPal exclusively as forms of payment. All merchants that accept Visa and Mastercard usually must go through a rigorous pre-screening and background check before being allowed to accept these forms of payment.
4. Beware of exaggerated claims of potential earnings, profits, or earnings. No honest company can guarantee how much you will earn.
5. Get specific information from the company: Direct contact (not an answering machine), location, ask if they have a refund policy, customer support, resources and if possible references of active members of the business.
6. If the company refuses to give you a refund or gives you an evasive response, tell them you plan to notify law enforcement officials
7. Check the company out with the Better Business Bureau. //lookup.bbb.org
Besides taking these steps, if you want to learn more about work at home fraud contact:
• Your local Better Business Bureau. //lookup.bbb.org
• U.S. Postal Inspection Service. www.usps.com/postalinspectors
• Scambusters, at www.scambusters.org
• Your local or state consumer affairs agency
• Federal Trade Commission at 202.382.4357
• National Fraud Information Center at 1-800-876-7060
Legitimate home business opportunities will not pressure you and allow you to go at your own pace, review the company, and decide if the opportunity is right for you. NOTE: Even legitimate opportunities may suggest that you invest money, but will not cancel you if you don't.
You can help protect others by referring this page of steps to avoid home business scams to anyone considering a home business.
Sergio Ferreira has been writing articles related to family issues and home business for 10 years. His web site provides information on how to avoid scams, how to choose the best legitimate business opportunity, articles and resources to help others succeed in their home business. Please visit: www.legitimate-home-based-businesses.net
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