Spotting a Scam
Unfortunately, because there are so many people who want to make a living working from home, there are a bunch of companies out there that are just scams to get your money or access to your bank account. These companies look just like the legitimate home based business opportunities, so it can be very difficult to spot the scams. Even with all of the home businesses I’ve tested, I sometimes still get hung up on a scam.
Here are some warning signs of a scam. While these don’t automatically mean it’s not legit, they do mean you should proceed with caution:
- They Ask for Your Bank Account Info. Just like those letters you get from some dethroned Nigerian prince who needs your help accessing his millions of dollars, any company asking for your bank account info is up to no good. They most likely aren’t just going to send a “test check” to your account. They are looking for suckers so they can clear out their bank account. Never provide your bank information to any unknown entity.
- They Make You Call Some Strange Area Code. There are some area codes that look like they are domestic codes but they are really foreign or pay-per-call numbers. If you call a listed number and are forced to listen to a recording or sit on hold for long periods of time, hang up. Like the 1-900 numbers we’ve all seen the late-night commercials for, these charge you per minute to your phone bill and collect on people waiting to hear more about their “great opportunity.” If you have any doubt, call your operator or check on a site like this one.
- They Upsell You to Work With a “Personal Coach.” Some work-at-home businesses come with one-on-one support that is really just higher members of the pyramid scheme. They charge you money for time with this personal coach, and you get very little from the coaching time except a pitch to buy more of the company’s products. Some also give you only the vaguest details on how their system works and then tell you to buy into personal coaching sessions to get the real details.
- They Ask You to Pay Upfront to “Prove You’re Interested.” A nominal fee of a few bucks is no big deal, but there are some businesses that require a starter pack for the cost of a hundred bucks or more. Paying for access to a big jobs listing is one this, but paying for an actual job is something that should be a red flag for you.
- They are Located Outside the U.S. Always find out where the company headquarters are, and stick to working only with those in the main 48 states of the U.S. Though you may picture a Bahamas address as a sign of the wealth you can achieve, it also means they are operating outside U.S. business law. Avoid islands and foreign addresses.
As always, we recommend doing some other simple checks before starting with any company. Use the Internet to search for the name of the program as well as the author of it. Check with listings like this one to see how long the master company has been in business and where they are located.
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