How to Spot a Work From Home Scam

As more people are being laid-off during these economic challenges it's even more important to beware of work-from-home scams. If you're down on your luck or in need of extra case, it may be tempting to fall for one of these work-from-home scams.

Difficulty: Moderately Easy

Instructions

1. ASSEMBLY SCAM. Are you good at putting things together? Assemble our jewelry, toys, clothing, gizmos, etc. in your spare time and make loads of money!!!
   
   THE CON: You will be asked to pay a hefty deposit to ensure that you will complete and return the work. Unfortunately, when you return the assembled products you will be disappointed to learn that your work was rejected and the company is keeping your deposit. Ouch!

2. STUFFING ENVELOPES SCAM. Almost everyone has seen this ad: Earn extra cash stuffing envelopes! This scam promises to pay you big bucks for cramming paper into envelopes, all you have to do is purchase their supplies or training package.
   
   THE CON: All you get are worthless instructions on how to stuff envelopes or con your friends into signing up too.
   
   In reality, companies have machines or some poor intern to stuff their envelopes.
   
   P.S. If you are that poor intern you should probably read my article on How to Avoid an Internship Scam.

3. MYSTERY SHOPPERS SCAM. What could be better than being paid to shop? This scam claims you can make big bucks rating customer service at your favorite stores.
   
   THE CON: There are legitimate mystery shoppers out there, but in reality they only make about $10-15 per hour (and maybe a free meal). If you're offered something that's too good to be true...
   
   Sometimes scammers will send you a paycheck and then contact you saying they overpaid you. They will ask that you mail them a personal check for the amount they overpaid you. If the con works, you won't discover that the paycheck they sent bounced until after they have your money.
   
   Another mystery shopper scam is to simply steal your Social Security number (Identity Theft). Never give out this information unless you are absolutely sure the employer is legitimate even if they have a professional-looking website.

4. BILLING PROCESSOR SCAM. Usually this scam goes by the title of Medical Billing Specialist or Insurance Claims Processor.
   
   THE CON: You'll be asked to pay $$$ for the required software and training. Unfortunately, most companies have their own people to process their claims and bills. If they need to outsource they send the work to large companies not work-from-home individuals. You'll end up paying for the training and software, but never see a dime.

5. REMEMBER. Legitimate employers pay employees. ..NOT THE OTHER WAY AROUND. If someone tries to charge you for training material, or anything else, run!
   
   Never reply to work-from-home email advertisements, they are a scam.
   
   The economy is tough, don't let these scammers take advantage of you or your family!

[MariM]

on 3/19/2009 Thank you for this information.5*