They're advertised in the newspaper, on TV and over the internet--quick easy ways to make money fast! How can you tell if an ad is legit or a scam? You really need to do your homework and find out what information the company is NOT telling you upfront. To help you out, here’s a list of the most common work at home scams to be aware of.
1. Medical Billing
This scam has been around since the mid-1990s. You have to purchase a software package that will allow you to process medical paperwork from home. The start-up kit costs between $300-$900. You're also provided with a list of potential clients however the list in many cases is outdated. Most medical clinics process their own bills or hire a firm to do their billing, so your chances of lining up any clients with this approach are almost non-existent.
2. Rebate Processing
Typically, rebate processing is done at a large processing center and handled internally. Recently, there have been ads promising people that they can process rebates from the comfort of their own homes. When a person responds to the ad, the company asks for a substantial fee to cover the shipping and handling of the rebates to be processed. The person never receives the rebates.
3. Posting Links
Be cautious of companies that are looking to hire people to post links for them. One company in particular, charges a low $1.99 start-up fee. If for some reason you don't make your quota for the month, you're charged $99 per month in membership dues. It's questionable as to whether the company is making more money off of its "membership dues" or as a result from the postings!
4. 1-900 numbers
If you see an ad that provides a 1-900 phone number to call for more information, don't call. The scammers make their profit from these calls. Unlike 1-800 numbers, it will cost you to place a 1-900 number and you will most probably be put on hold for an extensive and expensive period of time.
5. Type at home
Beware of companies that require you to pay a fee upfront. Upon receiving a payment, these scammers will send a disk and printed information telling you to place similar ads and sell copies of the disk! They are just recruiting you to perpetuate the scam by dragging more people into buying disks/materials.
6. Assembly and craft work
Dating back to the 1980s, this scam claims if you assemble dolls, toys, or other crafts at home, you can return them for a nice profit. You have to pay a start-up fee for the materials and instructions. However, when you send the finished products back, you'll be told that they don't meet the company's specifications. Thus, the company makes money by selling starter kits, not by selling the completed crafts!
7. Purchase list
For a small fee you can purchase a list of companies who supposedly are looking for home workers just like you. Typically the lists are worthless because most of the companies don't hire home workers!
8. Mystery shopping
Although some are legitimate sites, beware of ones that ask for money upfront. These scammers especially like to advertise in small town newspapers. The ads are very appealing and make it sound as though you'll make lots of money while having the joy of shopping.
9. Envelope stuffing
This scam has been around for decades! After paying money upfront for supplies, you're supposed to receive 1,000 envelopes to stuff. The envelopes will have postage and address labels already on them and you'll be paid $1 for each envelope you stuff. Instead of the envelopes, the scammer will send you a short manual with flyer templates. You're to post the flyers which advertise another scam. If someone responds to the flyer, the person is to send you $1.00 in a pre-addressed, pre-paid envelope.
10. Email processing
Do you enjoy forwarding or editing emails? That's not the intent of these scammers! For a low start-up fee, you'll receive instructions on spamming the same ad that caught your attention in web forums!
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