Reprinted from the
Federal Trade Commission Website.
Be part of one of America’s Fastest Growing Industries.
Be the Boss!
Earn thousands of dollars a month from home!
Ads like this are everywhere — from the telephone pole on
the corner to your newspaper, email and favorite websites. The jobs might be
different, but the message is the same — start earning a great living today
working from home, even in your spare time.
When money’s tight, work-at-home opportunities can sound
like just the thing to make ends meet. Some even promise a refund if you don’t
succeed. But the reality is many of these jobs are scams. The con artists
peddling them may get you to pay for starter kits or certifications that are
useless, and may even charge your credit card without permission.
Others just don’t deliver on their promises. The ads don’t
tell you that you may have to work a lot of hours without pay, or they don’t
disclose all the costs you might incur — say, for placing newspaper ads, making
photocopies, or buying the envelopes, paper, stamps and other supplies you need
to do the job. People tricked by these ads have lost thousands of dollars, not
to mention time and energy.
Here are some examples of work-at-home schemes to avoid:
Envelope Stuffing.
For a “small” fee, the ad says, you’ll learn how to earn lots of money stuffing
envelopes at home. But once you pay, you find out the promoter never had any
work to offer. Instead, after you send in your money, you get a letter telling
you to get other people, even your friends and relatives, to buy the same
envelope-stuffing “opportunity” or some other product. The only way you can
earn any money is if people respond the same way you did.
Assembly or Craft
Work. According to the ad, you can make money assembling crafts or other
products at home. You may have to invest hundreds of dollars for equipment or
supplies — for example, a sewing or sign-making machine from the company, or
materials to make items like aprons, baby shoes or plastic signs — or spend lots
of hours producing goods for a company that has promised to buy them.
But after you’ve paid money and done the work, the company
doesn’t pay you — supposedly because your work isn’t “up to standard.”
Unfortunately, no work ever is, and you’re left with equipment and supplies —
but without any income to show for it.
Rebate Processing.
The ad in your email says you can earn money by helping to process rebates. And
the fee for training, certification or registration is nothing compared to what
you’ll earn processing rebates from home, according to the promises in the ad.
It says the #1 certified work-at-home consultant behind the program will show
you how to succeed like she did.
What you get are poorly written and useless training
materials. There are no rebates to process, and few people ever see a refund.
Online Searches.
The ad on the website piques your curiosity — earn $500 to $1000 a week, or
even $7,000 a month, running Internet searches on prominent search engines and
filling out forms. Even better, you can be your own boss and do the work right
from home. What have you got to lose, except a small shipping and handling fee?
Unfortunately, you have a lot to lose. The company isn’t
really connected with a well-known search engine — scammers are just lying to
trick you into handing over your credit or debit card information. If you pay
them even a tiny fee online, they can use your financial information to charge
you recurring fees.
Medical Billing.
The ads lure you with promises of a substantial income for full- or part-time
work processing medical claims electronically — no experience needed. When you
call the toll-free number, a sales rep tells you doctors are eager for help,
and in exchange for your investment of hundreds — or thousands — of dollars, you’ll
get everything you need to launch your own medical billing business, including
the software to process the claims, a list of potential clients and technical
support.
But companies rarely provide experienced sales staff or
contacts in the medical community. The lists they give you often are
out-of-date and include doctors who haven’t asked for billing services. The
software they send may not even work. Competition in the medical billing market
is fierce, and not many people who purchase these “opportunities” are able to
find clients to start a business or generate revenue — let alone get back their
investment and earn any income. Many doctors’ offices process their own medical
claims, and doctors who contract out their billing function often use large,
well-established firms, rather than someone working from home.
To avoid a medical-billing scam, ask for a sizable list of
previous purchasers so you can pick and choose whom to contact for references.
If the promoter gives only one or two names, consider that they may be “shills”
hired to say good things. Try to interview people in person where the business
operates. Talk to organizations for medical claims processors or medical
billing businesses and to doctors in your community about the field. Finally, consult
an attorney, accountant or other business advisor before you sign an agreement
or make any payments up front.
When it comes to business opportunities, there are no sure
bets. Promises of a big income for work from home, especially when the “opportunity”
involves an up-front fee or divulging your credit card information, should make
you very suspicious. It doesn’t matter if the ad shows up in a trusted
newspaper or website — or if the people you talk to on the phone sound
legitimate. The situation demands both research and skepticism.
Ask Questions
If you’re thinking about following up on a work-at-home
offer, do your homework. Here are some questions to ask:
·
What tasks will I have to perform? (Ask the
program sponsor to list every step of the job.)
·
Will I be paid a salary or will I be paid on
commission?
·
What is the basis for your claims about my
likely earnings? Do you survey everyone who purchased the program? What
documents can you show me to prove your claims are true before I give you any
money?
·
Who will pay me?
·
When will I get my first paycheck?
·
What is the total cost of this work-at-home
program, including supplies, equipment and membership fees? What will I get for
my money?
The answers to these questions may help you determine
whether a work-at-home program is legitimate, and if so, whether it’s a good
fit for you.
You’ll also want to check out the company with your local
consumer protection agency, state Attorney General and the Better Business
Bureau, not only where the company is located, but also where you live. These
organizations can tell you whether they’ve gotten complaints about a particular
work-at-home program. But be wary: just because there aren’t complaints doesn’t
mean the company is legitimate. Unscrupulous companies may settle complaints,
change their names or move to avoid detection.
In addition, consider other people’s experience by entering
the company or promoter’s name with the word complaints into a search engine.
Read what others have to say. After all, you are making a decision that
involves spending your money.
Where to Complain
If you have spent money and time on a work-at-home program
and now believe the program may not be legitimate, contact the company and ask
for a refund. Let company representatives know that you plan to notify law
enforcement officials about your experience. If you can’t resolve the dispute
with the company, file a complaint with these organizations:
The Federal Trade Commission at ftc.gov/complaint or
1-877-FTC-HELP (1-877-382-4357).
The Attorney General’s office in your state or the state
where the company is located. Visit naag.org; the office will be able to tell
you whether you’re protected by any state law that may regulate work-at-home
programs.
·
Your local consumer protection offices.
·
Your local Better Business Bureau at bbb.org.
·
Your local postmaster. The U.S. Postal Service
investigates fraudulent mail practices. Visit postalinspectors.uspis.gov.
·
The advertising manager of the publication that
ran the ad. The manager may be interested to learn about the problems you’ve
had with the company.
For More Information
The FTC works to prevent fraudulent, deceptive and unfair
business practices in the marketplace and to provide information to help
consumers spot, stop and avoid them. To file a complaint or get free
information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP
(1-877-382-4357); TTY: 1-866-653-4261. Watch a video, How to File a Complaint,
at ftc.gov/video to learn more. The FTC enters consumer complaints into the
Consumer Sentinel Network, a secure online database and investigative tool used
by hundreds of civil and criminal law enforcement agencies in the U.S. and
abroad.
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