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Avoiding Common Work At Home Scams
Author: Wendy Betterini | Posted: 07-02-2006 | Comments: 0 | Views: 535 | 
Scammers are getting more creative every day, coming up with new schemes to get your money (or sensitive information). Knowledge is power! By educating yourself on the common scams and keeping aware about new ones, you can stop the scammers in their tracks. Remember, if no one fell for their tactics, they would be out of business! Here are some of the most common scams today:
Stuffing Envelopes - There are no legitimate envelope-stuffing jobs out there. Please don't fool yourself into believing there are. Companies can very easily purchase a beautiful machine for a few thousand dollars that will not only stuff the envelopes, it will also fold, collate and apply postage to the envelopes. Why would a company pay you thousands of dollars a month to stuff their envelopes? They wouldn't. If you send in your fee for this scam, you will receive a copy of the same ad you responded to, and you will now have to scam other people by placing the ad and having them send you their money. This is illegal.
Typing and Data Entry - Similar to the scheme above, if you sign up for this and pay your fee, you will receive a copy of the same ad, and have to place ads to get other people to send you their money. You earn $20 per "application processed" because you are charging people $20 to get the information. Again, illegal. There are some legitimate companies that will hire you to do typing and data entry (such as transcription or coding) -- but they won't charge you a fee to work for them. If a fee is being charged, it's a scam.
Craft Assembly - Most of these opportunities are scams because they make their money by the start-up fees you pay. When you receive your kit, you will assemble dozens of earrings, potholders, magnets (or whatever), send them in for payment, and they will not pass inspection. You can try to fix them as many times as you like, they still won't be accepted. The company doesn't want the items you assembled, they want your money for the start-up kit. There are a few legitimate companies out there, however. Disciple's Cross and New England Crafters are two we've found so far. We are researching others.
Medical Billing - There are companies that will train you to become a Medical Biller from home, as long as you purchase the Medical Billing software for your computer from them. (Usually costs a few hundred dollars at least) What they don't tell you is that YOU will be responsible for finding your own clients (Doctors/Dentists). This can be incredibly difficult to do, since most medical professionals already use a billing service, or do their own billing in the office. With the new Privacy laws, medical professionals need to be extremely careful with patient records, and most will not want to trust someone with no billing experience to handle the office billing at home.
Payment Associate/Specialist - A company wants to hire you to place auctions on eBay and accept customer payments using your own accounts). You get to keep a portion of the money, and send the rest to the company. The company is supposed to ship the product to the customer, but they don't. (or they ship stolen goods) You are now in big trouble with eBay and Paypal for fraud. Don't do it! Don't ever use your own accounts for anything other than your own business. Companies should be able to set up their own accounts just as easily as you did for yourself.
Pyramid Schemes - A pyramid scheme is when money changes hands but there is no product or service being sold. "Joe" charges you $200 to join the scheme, and then you in turn need to charge others $200 to join, and they charge others, etc. This is illegal. Remember, there must be a product or service being sold.
Gifting Programs - This is also an illegal pyramid scheme, but they call it a "gifting program" -- in other words, you "gift" Joe $200, and then you need to find others who will "gift" you $200, and so on. Illegal.
Chain Letters - These have been around for years! They used to come by postal mail, but now they also arrive via email. There are usually 5 names on the list, you need to move each name up a spot, removing the top name, and place your name at the bottom, and then send $5 to each name on the list and send it out to everyone you know. Highly illegal. There is also a version for online payment services like Paypal, you send $2 or $5 (the amount varies) to the people on the list, and others are supposed to do the same for you. Don't get caught up in something like this, it can ruin your life.
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About the Author:Wendy Betterini is a freelance writer, web designer and owner of http://www.CreativeWorkAtHome.com, a resource center for home business owners and telecommuters. Visit today for information on how to make your work at home experience successful.
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