10 Tips for Avoiding Home Business Scams

The following is a guest post. See the end of the article for details on the author.

Starting a home business has become a wonderful and attractive alternative for parents across the country. With the advent of the Internet, email and cell phones, working at home has been a very viable option. No other alternative allows parents the opportunity to create their own hours and work around their children’s schedules while earning an income. But before investing in any home business opportunity, it is wise to take appropriate steps to research the opportunity and the company. Unfortunately, there are deceitful businesses ready to take advantage of parent’s deep desire to be at home with their children.

1. Research the company and always check them out with the Better Business Bureau (http://search.bbb.org/search.html) located in their city.

2. Ask for at least three references of people they have worked with. Call each person and ask about his or her experiences with the company.

3. Be cautious of any company that asks for money for a work-at-home job (such as money for registration, applications or instructions).

4. Don't be fooled by ads claiming you can make large amounts of money in short periods of time. And be cautious of companies that require you to sign up immediately. If it sounds too good to be true, it usually is.

5. Get specific information in writing from the company such as how long they have been in business, where they are located (not just a P.O. Box), how many customers they have, what their refund policy is (read it thoroughly), how long it takes to get paid and if there are any restrictions on payments, etc.

6. If you do invest in a business opportunity, use your credit card instead of cash. It may be easier to dispute the charges with your credit card company rather than trying to get your money back from a fraudulent company.

7. Research current scams on web sites such as ScamBusters at: http://www.scambusters.com.

8. Call the National Fraud Information Center at (800) 876-7060 for information or visit their web site at: http://www.fraud.org.

9. Report any scams or fraudulent companies to the Federal Trade Commission http://www.ftc.gov, your state's Attorney General and the National Fraud Information Center, PO Box 65868, Washington, DC 20035, (800) 876-7060.

10. Don't invest in any opportunity that you are not sure about. Instead, find something that you are interested in and will enjoy doing. (Do what you love, and the money will follow.)

Lesley Spencer Pyle is founder & director of HBWM.com, Inc (Home-Based Working Moms™), a professional association and online community of parents who work from home and those who would like to. She is also the author of The Work-at-Home Workbook.

Comments

[Brian]

The "work at home" revolution is certainly attracting a bunch of scam artists trying to make a quick buck. #7 on that list is awesome. I didn't even know a site like that existed. Thanks for the tip, guest poster Lesley.

[Tom]

I'd like to add one other warning sign to this list.

11. If a company gives you a "Cashier's Check" (or Official, Certified, etc.) and asks you to cash/deposit it and return some it to them for any reason, its a scam. The funds will become available in your bank account well before the check is returned as being counterfeit by the bank. The target will then be out any of the money that they sent the scammers. And yes, the bank will try to collect from you.

I know this is common sense to most, but you'd be shocked how often regular people fall for this. Working in a bank I see this at least every couple of weeks. Most people think I'm lying to them of course.

Tom

[thewalletsaver]

Great tips. I know that a lot of people will benefit from this information.

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[reash]

When you invest, you must make sure that you are investing in the right company. Must know everything first before shelling out cash from your pocket otherwise you will suffer money loss. It is important to trust your instinct.