Here are some tips on how to identify a work from home scam

Friday, January 27th 2012 · 0 COMMENT

Here are some tips to avoid getting scammed by a work from home company

•  It seems too good to be true. A promise of big pay for a job that requires minimal effort and skill is probably phony. Your really can’t make $10K a month from home stuffing envelops..we promise.

These schemes come in many forms. They may want money for background checks, for credit checks through a particular “agency,” or for special equipment or information.

Be wary as well of a job placement company that wants a large up-front fee to find you a job. If you are looking at a company works with independent contractors (for example: Arise,Liveops, Amway, Avon), you will have some upfront fees given you are starting your own business. Also check to see who the management team is. Are these folks from real companies. If they aren’t willing to disclose who they are..then run…

They are quick to ask for personal information like Social Security or bank account numbers. Only after a job is absolutely confirmed as legitimate by checking their references and checking with the Better Business Bureau should you give out such information.

•  Contact information seems incomplete or doesn’t make sense. If there is no street address, beware. P.O. boxes can be rented and quickly abandoned. Even an address that sounds legitimate can be fake. Use Google Street View or other online “who is” websites to verify legitimacy.

•  The wording of messages to you is garbled or full of grammatical errors. Many online scams are the work of people located outside the U.S. and for whom English is not a first language. Check the companies news section for legitimate coverage

•  References are missing or sound too grandiose. You should ask for lots of references and you should diligently check them out. A simple web search on the company name can be enlightening.

The Federal Trade Commission, a government agency charged with protection of American consumers, has issued a Business Opportunity Rule with safeguards against get-rich-quick business opportunities.

Under that Rule, those who try to sell you business opportunities must give you a one-page disclosure document with important facts about that opportunity. In it they must identify themselves, disclose any legal actions against them and explain their cancellation policy. Additionally if they are making a claim about how much you can earn, they must give you a separate earnings claim statement.

That earnings claim statement clearly outlines the specifics of their claim. They must give you the start and end date that the earnings are achievable within.

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