How to Avoid Home Business Scams
Home business scams are rampant on the internet. They cost unsuspecting people millions of dollars a year. According to the Federal Trade Commission, home business related fraud has increased every year for the past three years. Proprietors of these scams use misrepresentation and fraud to cheat people out of their money. The following article will discuss some common scams to avoid.
Other People Are Reading
Instructions
-
How to Avoid Home Business Scams
-
1
Avoid pyramid schemes. These involve people being recruited to pay people above them in the hierarchy. These people then expect to receive payments from people below them. When recruiting begins to fail, it is the people at the bottom of the pyramid who will loose their money.
-
2
Avoid type-at-home jobs as these are typically scams as well. For a fee, you will get a list of companies who are looking for individuals to work from home. However, the vast majority of the companies do not even know that they are on the list and they are not even looking for home-based help.
-
-
3
Avoid at home medical billing. These are schemes that involve paying for a start up kit to start your own medical billing service. However, this kit will typically contain useless and outdate information and contact sheets. The vast majority of people who attempt to start their own medical billing service do not make enough money to even recoup the start up cost.
-
4
Avoid product assembly. These scams occur when you pay a fee and receive products that you are to assemble at home and return to the company. You will usually be told that the assembly did not meet their standards, even if you followed the instructions to the letter. The purpose of this type of company is to make money selling people the starter kits, not the product that you took the time to assemble.
-
1
Tips & Warnings
If you do fall victim to one of these scams, attempt to contact the company to ask for a refund.
If they refuse to refund your money, inform the company that you will be reporting them to the proper authorities.
If a home based business opportunity sounds too good to be true, it most likely is.
Avoid opportunities that promise high pay for little effort.
A company expecting money from you up-front is another common scam.
Do not call 1-900 numbers.
Resources
- Photo Credit http://www.legitimate-home-based-businesses.net/images/caution-computer-screen.jpg
