How to Recognize and Report Work-at-Home Scams

It's been said that the small business may be what will drive the real turnaround in the U.S. economy. If this turns out to be the case, home workers will be the fuel behind that drive.

Many companies happily employ people from the individual who prefers their privacy to parents that don't want to put their children in day care. There are jobs ranging from virtual secretaries to medical billers to writers. All of these jobs have potential to free you from the daily 9-5 if you have self-motivation.

Since opportunities first started appearing online to the current boom offering employees the chance to begin a work-at-home career, scammers have happily taken their own opportunity to exploit the unwary.

Steps to Recognizing Work-at-Home Scams

Just run a search for "work-at-home jobs" and you'll find thousands of results. Unfortunately, the results can't show you which jobs are legit and which ones are out there just to get something from you; money or worse - information that can be used to steal your identity.

Don't let the scams discourage you. There are at least as many legitimate home careers available as there are scams. Knowing how to tell the difference will set you apart.

Scam Alert #1: Upfront Costs

The most common work-at-home scams look perfectly harmless. After reading all the great information that the "company" has to offer, usually including testimonials and free bonuses, you're asked for money. Usually, this comes in the form of a "registration fee," or you're told that the money will purchase your "starter packet." You might also be asked to pay for sales leads or materials. In most cases, what your upfront cost will actually purchase you is an ad or a sales page just like the one that lured you in the first place. Not only is this a scam, but it's illegal. There is no service or product being paid for, so the "seller" has committed a crime by accepting your money.

Rule one: never, ever pay upfront costs.

Scam Alert #2: Money for Nothing

If it looks too good to be true, it probably is - and this definitely holds true for work-at-home careers. The moment you're told you can get paid for doing little to no work, be cautious. Large amounts of money don't just "come" to those who don't work their behinds off for it. Yes, it's true that you can build a residual income that will eventually lead to money coming in with very little work on your part. Be aware that this type of residual income is not a get-rich-quick offer. It takes months to years of work before you will start seeing your "money for nothing". Remember that any job - worked at home or in an office - that offers decent pay usually requires hard work and a lot of dedication on your part.

Rule two: you won't get rich overnight, and don't delude yourself about it.

Scam Alert #3: No or Little Contact Information

If you've gotten through the first two scam alerts without any red flags, start looking for contact information. A reliable source of work-at-home income will prominently display ways of contacting the business you're considering working with. You should be able to find a contact button, in the least, which offers an email form. And you should receive a prompt reply from it. Seriously take a step back if the advertisement or website offers only a P.O. box or mobile phone number as a source of contact.

Rule three: if you try to contact someone personally and have no luck, assume it's a scam.

Scam Alert #4: Evasive and Refusing

Seriously, if you've gotten this far with an opportunity, you should be feeling pretty good about things. There's really only one last test - this one - which a work-at-home career opportunity should pass before you decide to go ahead. First, ask for references from other employees or for contact information so that you can get in touch with other people (who have given permission to be contacted) who have gone ahead with the opportunity. If you can, look for genre-specific forums that mention the company you're looking at and speak to others about their experiences with that company. Be very, very cautious if you're refused references or if the only information you can find on a business when performing a basic search engine search are bad. Beyond that, flat-out avoid businesses that refuse to mention the actual job duties you'll be required to perform in this work-at-home opportunity.

Rule four: do your research, and if you are refused any information it may be time to look elsewhere.

Once you've discovered a company or work-at-home opportunity that is a good fit with your skills and abilities as well as pass all the scam tests, you should do a little research. You should check the legal requirements of the position you're hoping to take on. Some positions - such as the widely advertised medical transcriptionist opportunity - require specific licenses and certificates to legally perform.

Steps to Reporting Work-at-Home Scams

Between the lack of traditional job openings and the growing desire of people to stay at home and earn their money, more and more scams are being reported every day. Individuals realize they've paid a registration fee to stuff envelopes and then they receive nothing. Or they've been asked to pay for the shipping of packages to another country, upon which they do not get reimbursed - not to mention the actual "pay" they were promised to receive for performing the service.

Unfortunately, there is usually no way of getting your money back. You can try, and we'll cover how, but the most helpful thing you can do in this case is report the scam so that others won't be taken in.

First: Notify the Post Office

Most of the work-at-home scams occurring currently are mail scams. By letting the post office know about the company who has scammed you, the postal inspection service will be alerted. This service actually educates people every month about the latest work-at-home scams that are occurring around the country. Your report will alert thousands of people about the scam, and prevent the scammer from receiving any more fraudulent money.

Second: Notify the National Fraud Information Center

The National Fraud Information Center actually works directly with law enforcement offices around the country. They share all of the reports given to them, as well as the information they have gathered through their own research, with law enforcement agencies so that patterns of criminal activity can be identified and the criminal can be caught and prosecuted.

Third: Notify the Federal Trade Commission

Fraudulent activity reported to the Federal Trade Commission are investigated and entered into an online database. This database is available to civil and criminal law enforcement agencies located all over the world. These law enforcement agencies use the information to gather enough evidence against criminals perpetrating work-at-home scams to convict them in whatever country they are operating from.

Fourth: Notify the Better Business Bureau

When you report a work-at-home scam to the Better Business Bureau, they make the information available on their warning list. This warning list lets people know about the latest scams, and advises individuals about what warning signs to look for based on the patterns pinpointed in the last several months' scams. By reporting to the Better Business Bureau about the work-at-home scam, you also effectively prevent the "business" from ever registering with the BBB. If they are already registered, the BBB will initiate an investigation and will remove them from the records.

If you've already been scammed, look for an email address, a mailing address, or a phone number that you can attempt to contact the person who scammed you with. Let the individual know that you plan to report them to the above agencies, and that you are seeking legal counsel. Often, the threat of being reported or - worse - taken to court will worry the individual enough to refund your money.