The Work at Home Scam Blog

You might have seen commercials on cable about various sorts of kiosks that you can buy and set up to make money. One that I saw a while back was advertising public Internet access sites that you can place in businesses such as malls. Another one that I saw online was a DVD rental kiosk.

Use caution when considering these, just as you would with any other business opportunities. It sounds like easy money with a legitimate investment, but it’s quite possible that many of these deals could be too good to be true. I have heard horror stories about people who ordered and paid for their kiosks, only to receive faulty equipment and no support for it.

Are there legitimate kiosk companies? I’m sure there are. I can’t say that I know from experience, because I’ve never had the cash to invest in them to find out. But as always, you must do your homework before giving them your hard-earned cash. Check them out with the BBB, and do general online searches of the company’s name and the names of people at the top. I have also heard tales of the companies giving prospective buyers names of supposed satisfied customers as references, only for them to turn out to be paid to sell you on it. So seek out opinions on your own if at all possible.

I hope everyone is having a happy holiday season! I just wanted to share something I saw on TV that might be of interest.

THS Investigates: Online Nightmares is a special about bad things that have happened to people online. It covers online predators, eBay scams, and identity theft, among other things. I watched it earlier this evening, and it’s definitely worthwhile if you do pretty much anything online, or care about someone who does.

The two-hour special is scheduled to air again on January 4th and 7th. Check your local listings for channel and time.

Almost everyone who has searched for a work-at-home job has run across ads for home job directories. Some are in print, others are online. When considering a paid home job directory, you should proceed with caution.

Always keep in mind that there are job boards out there that are free. Yes, there are scams aplenty on them, but the same is true with the paid directories. Many of them claim to list only legitimate jobs, but all too often they don’t.

In my quest to work from home, I have paid for one job directory that was actually worthwhile. They do not accept postings for pyramid schemes or chain letters, and they charge a one-time fee for lifetime access. And they do not guarantee that every job listed is legitimate- they advise their members to check out any work at home job or opportunity. These are the kinds of things you should look for when analyzing a paid job directory. If they do offer a money-back guarantee, be sure to read the fine print before handing over your money.

According to PR Web, the ratio of work-at-home scams to legitimate work-at-home jobs is 42 to 1! And the number of scams is growing by 50% per year.

It’s an outrage that honest people who are trying to make a living from home have to face such odds. All we can do is go over every job and business opportunity with a fine-toothed comb before taking it, and report any scams we run across so that their perpetrators can be shut down and prosecuted.

Please, if you are considering a work-at-home job, do not give the company your information until you have researched them thoroughly. There are good jobs out there, and if you want to stay home with your kids, or for some reason have to work from home, you owe it to yourself to keep searching until you find one. But always look before you leap.

I just finished reading about a direct sales company that started up recently, but turned out to be nothing but a sham. Apparently the company’s owner started up a fake direct sales program just to get sensitive information from people who thought they were getting in on the ground floor of something great.

It’s a shame that things like this happen. It really puts a damper on legitimate companies that are trying to get started, because people have to be so leery of anything that’s new. Here are a few things to consider if you are looking at a new direct sales opportunity:

• Is the website professional? If someone is serious about starting a new business, they will most likely take the time to make their website look professional. This means appealing design, good spelling and grammar, and logos of familiar payment processors or organizations that you can check out their affiliations with. Note: A professional website does not necessarily mean that a company is legit, but an unprofessional one is a good indication that they’re probably not.
• Beware of companies in a “pre-launch” phase. This means that they are only accepting signups for consultants and not selling products yet. Legitimate companies sometimes do this, but wouldn’t it be convenient for someone who just wants enough information to steal your identity to say that they’re not selling products yet? Then they could avoid all the hassles of undelivered items.
• Take unbelievable or unsubstantiated claims with a grain of salt. If a new company with no affiliations with a larger, more familiar company claims to have already signed up a large amount of reps, there’s probably something fishy going on.
• As always, do your homework! Search for the company’s name on Google and see what pops up. Check out the scam forums, consultant check groups, and the like. Ask around and find out if anyone you know has any experience with the company.

Remember: if it sounds too good to be true, it probably is. If they ask for sensitive information and you just don’t feel right about it, don’t give it to them. If the company is indeed legitimate, you can always join later. It’s not worth risking the loss of your identity and money for any sort of incentive they may offer to join now.

Phishing is an epidemic affecting work at home parents as well as most other Internet users. If you have your own website with your email address on it, or post it anywhere on the web, you’ve probably received some phishing emails. I’ve been getting all sorts of them lately.

One of the biggest targets of these types of emails is the Ebay or PayPal user. The emails state that there is some sort of problem with your account, and advise you to click on a link in the email. The link takes you to a page where you are supposed to correct your information. These emails usually include PayPal or Ebay logos and look very official. So the only solution is to be extremely cautious when dealing with emails claiming to be from these companies, or any other.

Ebay, PayPal, and most other companies do not include links to your account in their emails. If a link is included, do not use it, but type the address into your browser instead. If there is any problem with your account it will show up anyway.

If you are in doubt about an email that purports to be from a company that you do business with, forward it to the company’s spoof email address. For PayPal the address is spoof@paypal.com, for Ebay it is spoof@ebay.com. If it is from another company and you’re not sure of the address, go to their website for instructions.

I don’t have the time or resources to list specific companies or post emails involved in known scams. But I’ve found a website that does just that.

Scamdex has databases of scam emails and lists of fake companies that have been reported, and a forum where people can post scams they have discovered. It’s a good resource if you want to see some examples of what to look for.

But remember, scammers are like chameleons- they change constantly. When they are discovered, most simply get new websites, email addresses, and identities. So it’s wise to learn the “red flags” to look for in a scam as well.

A few years ago, medical billing jobs were supposedly all the rage. Every way you turned there were advertisements for medical billing classes. They promised you training, the necessary software, and job placement upon successful completion of training.

The companies behind all of that hype must have made a lot of people very angry, because the ads aren’t seen nearly as much these days. There were several catches to all the promises they made.

The training and software usually cost several hundred dollars. But the software was often out of date, and there was no guarantee that the offices you would be working for would even let you use that software. And the job placement? They would send you a list of medical offices to call and try to convince that they should hire you and let you work from home, with no indication whether they were even in need of personnel. Not a very effective way to get a job.

So if you do happen to see these types of advertisements for medical billing jobs, or any variation on them, run in the other direction.

How’s this for a dream job: Receive payments from a company’s customers, then wire them to the company through Western Union, and receive a fee for each payment processed. Easy work, you choose your hours, and the pay is great. The catch? By accepting this job you become part of a money laundering scheme.

The funds transferred are from some sort of illegal activity, such as phishing or Ebay fraud. When they are transferred between bank accounts it leaves a paper trail. But once the money is wired through Western Union, it becomes virtually untraceable. Which means the paper trail ends with you. And whether you knew about the illegal activity or not, you could still face criminal charges.

Also beware any kind of job that involves receiving packages, then remailing them. If there wasn’t something illegal about them, there would be no need for a middleman.

Even if you haven’t heard of Nigerian 419 scams, if you have an email address you’ve more than likely been exposed to them. They originated in Nigeria, but are now popping up from all over the world.

In the beginning, mostly well-to-do individuals were the recipients of the scam emails. The writer usually claimed to be in possession of a large amount of money that they needed to get out of the country due to overpayment from a government contract. They were looking for someone to have the money transferred into his or her bank account, then transfer it into another bank account, keeping a percentage of it for their troubles.

Today this scam has many forms. Some letters claim that a long-lost relative has died and you are the recipient of his or her inheritance. Others claim government oppression and attempts to seize money that is rightfully theirs. Still others claim that you have won a large cash prize in a lottery or sweepstakes from another country. The emails are now going out to people from all walks of life, and new twists are surfacing all the time.

If you take the bait, the scammer will start communicating with you about the funds transfer, requesting personal information such as your home address, phone number, and bank account number. Many ask you to come overseas to complete the transaction. And at some point they will ask for an advance payment to cover taxes, attorney fees, bribes, or some other fee.

If you receive a letter like this, do not even reply to it. Many of these people are skilled scammers, and will stop at nothing to convince you. And there have been numerous reports of people getting started with one of these deals, then backing out, only to receive death threats.

Remember, if it sounds too good to be true, it probably is!